The UK has agreed a 0% tariff on all pharmaceutical exports to the US for at least three years, in a deal that will ‘benefit tens of thousands’ of patients, the Department of Health and Social Care (DHSC) has announced.<\/p>\n
Thanks to \u2018strong UK support for innovation\u2019, the UK has secured mitigations under the US\u2019 \u2018Most Favoured Nation\u2019 drug pricing initiative, it added.<\/p>\n
Tens of thousands of NHS patients will benefit from the landmark trade deal \u2013 part of the UK-US Economic Prosperity Deal, signed in May \u2013 which will expand access to vital drugs, safeguard the country\u2019s medicine supply chain, and drive investment, according to the Government.<\/p>\n
The deal will also secure ‘preferential terms’ for the UK\u2019s med tech exports, meaning there will be no additional tariffs on medical tech. This is hoped to unlock further investments in the UK.<\/p>\n
Business and trade secretary, Peter Kyle, said: \u2018This deal guarantees that UK pharmaceutical exports \u2013 worth at least \u00a35 billion a year – will enter the US tariff free, protecting jobs, boosting investment and paving the way for the UK to become a global hub for life sciences.\u2019<\/p>\n
Related Article: <\/strong> National living wage increase could cost pharmacy \u00a394m a year, says CPE<\/a><\/p>\n And science minister Lord Vallance said the benefits were twofold: it will help the country secure the best, most innovative treatments and it will boost the pharmaceutical industry.<\/p>\n \u2018We are entering an era of preventions and cures, and this landmark deal will ensure British patients are among the first in the world to access them,\u2019 he added.<\/p>\n The government also said it will \u00a0increase the price threshold at which it determines medicines to be too expensive by around 25%.<\/p>\n National Institute for Health and Care Excellence (NICE) currently assesses value for money for the NHS by applying a cost-effectiveness range of \u00a320,000-30,000 per quality adjusted life year (QALY) gained over and above current treatments. It has now been agreed that\u00a0NICE\u00a0will apply new thresholds of \u00a325,000-35,000 per QALY.<\/p>\n It means NICE will be able to approve medicines that may previously have been declined on cost-effectiveness\u202fgrounds, such as new cancer treatments or therapies for rare diseases.<\/p>\n NICE will also introduce a new value set for judging health states.<\/p>\n The value set comes from asking thousands of people from the public to judge how good or bad different health states would be. These are used to calculate numerical values, which help healthcare decision-makers compare different treatments.<\/p>\n Science and technology secretary, Liz Kendall, said: \u2018This vital deal will ensure UK patients get the cutting-edge medicines they need sooner, and our world-leading UK firms keep developing the treatments that can change lives.<\/p>\n Related Article: <\/strong> Concerns raised over pharmacy nominations without patient consent<\/a><\/p>\n \u2018It will also enable and incentivise life sciences companies to continue to invest and innovate right here in the UK. This will support thousands of skilled jobs, boost our economy and ensure that the breakthroughs that happen in our labs turn into treatments that benefit families across the country.\u2019<\/p>\n Chief executive of the\u00a0Association of the British Pharmaceutical Industry (ABPI), Richard Torbett, added that the deal is an \u2018important step\u2019 towards ensuring patients can access innovative medicines needed to improve wider NHS health outcomes.<\/p>\n He also said the deal begins to address industry concerns about NHS access to medicines, and the UK\u2019s record-high payment rate, yet many details remain unclear and there are further technical improvements to make.<\/p>\n The Autumn Budget analysis document, released in error by the Office for Budget Responsibility (OBR), highlighted the risk of pharmaceutical spending.<\/a><\/p>\n It said: \u2018Risks to health spending include the impact on the NHS budget of any further strikes, and the Government\u2019s negotiations for the US trade deal on the cost of pharmaceutical spending within the NHS.\u2019<\/p>\n