The UK-US pharma deal removes tariffs, boosts NHS access to innovative medicines, and drives significant life-sciences investment, safeguarding patients and industry growth
The UK and US have struck a landmark pharmaceutical deal that eliminates tariffs on British-made drugs exported to the US, making the US the only country in the world to secure such a concession.
In return, the UK government will invest 25% more in innovative treatments, enabling the NHS to fast-track cutting-edge therapies for conditions such as rare diseases and cancer. The agreement safeguards the UK’s medicines supply chain, supports thousands of jobs in the life sciences sector, and positions the UK as a top destination for global pharmaceutical investment.
Renewing confidence in the UK medical sector
Thousands of NHS patients will gain improved access to vital drugs, following a landmark trade deal between the UK and the US.
The deal is part of the UK-US Economic Prosperity Deal, and as a result, the UK will become the only country in the world to secure a 0% tariff on pharmaceuticals to the US. This reinforces confidence in the UK’s position, encouraging stakeholders to feel assured about future growth and stability.
The move renews confidence in the UK, supporting the Government’s ambition to make the UK Europe’s leading life sciences economy by 2030, inspiring pride in national progress and leadership.
The Government will also invest around 25% more in innovative, safe, and effective treatments, the first significant increase in over two decades. As a result, NICE can approve medicines that deliver significant health improvements, even if they may have previously been declined on cost-effectiveness grounds.
UK-US pharma deal: Delivering breakthrough, life-changing medicines
The UK has secured mitigations under the US ‘Most Favoured Nation’ drug pricing initiative, allowing the UK to continue to offer the latest treatments and encourage other pharmaceutical companies to prioritise the UK for early medicine product launches.
The UK has a long history of delivering breakthrough medicines, such as Blenrep, a revolutionary blood cancer therapy for multiple myeloma, which the NHS in England was the first health system to roll out. The reforms to the UK’s drug pricing system could make breakthrough medical treatments more readily available.
Science and Technology Secretary, Liz Kendall, said: ”This vital deal will ensure UK patients get the cutting-edge medicines they need sooner. Our world-leading UK firms continue to develop treatments that can change lives.
It will also enable and incentivise life sciences companies to continue investing and innovating 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.”
Business and Trade Secretary Peter Kyle said: “This deal guarantees that UK pharmaceutical exports – worth at least £5 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.
We will continue to build on the UK-US Economic Prosperity Deal, and the record-breaking investments we secured during the US State Visit, to create jobs and raise living standards as part of our Plan for Change.”
Science Minister Lord Vallance said: ”We are entering an era of prevention and cures, and this landmark deal will ensure British patients are among the first in the world to access them.
This is a vital agreement that delivers two significant benefits. It will help us quickly deliver the best and most innovative treatments to patients across the UK.
And with a world-beating deal on US tariffs, it is a massive boost for our pharmaceutical industry – cementing the UK as the destination of choice for life sciences businesses to invest, innovate, and grow.”
Health Minister Zubir Ahmed said, ”Every patient deserves access to the best possible treatment.
This deal is fundamentally about putting patients first – patients and families facing serious illness, this represents new hope and the possibility of treatments that could transform and even save lives.
There is a revolution taking place in life sciences, and this deal will allow NHS patients to receive innovative treatments faster, extending lives and giving families more precious time together.
This package of changes will bring the best of pharma to the UK for the benefit of our patients, our NHS, and our economy.”
