The U.S. announced Dec. 1 an agreement in principle with the United Kingdom on pharmaceutical pricing under which the U.S. has agreed to (1) exempt UK-origin pharmaceuticals, pharmaceutical ingredients, and medical technology from Section 232 tariffs (which have yet to be imposed but could be following an ongoing investigation) and (2) refrain from targeting UK pharmaceutical pricing practices in any future Section 301 investigation for the duration of President Trump’s term.
A press release from the Department of Commerce states that under this agreement the UK will increase by 25 percent the net price its National Health Service pays for new “innovative, life-saving medicines.” The UK will also ensure that higher prices for new medicines are not materially eroded by a demand for portfolio-wide concessions under the Voluntary Scheme for Branded Medicines Pricing, Access and Growth or other rebate schemes. In fact, the UK has committed that the repayment rate owed by companies under the current VPAG scheme will decrease to 15 percent in 2026 and remain at or below that level for the duration of the scheme.
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