US-UK zero tariff deal to reshape NHS medicine spending

The United States announced a deal with Britain for zero tariffs on pharmaceutical products and medical technology on Monday, which will lead to Britain spending more on medicines.

The deal included an increase in the percentage of the state-run National Health Service (NHS) budget that is spent on medicines.

“The United States and the United Kingdom announce this negotiated outcome pricing for innovative pharmaceuticals, which will help drive investment and innovation in both countries,” United States Trade Representative (USTR) Jamieson Greer said in a statement.

The office of the USTR statement said that Britain would increase the net price it pays for new medicines by 25 per cent under the deal. In exchange, UK-made medicines, drug ingredients and medical technology would be exempted from so-called Section 232 sectoral tariffs.

Two sources familiar with the deal said it involved a major change in the value appraisal framework at NICE, a UK government body that determines whether new drugs are cost-effective for the NHS, the sources said.