US-UK Pharmaceuticals Trade Agreement Aims to Boost NHS Spending on New Drugs
The US-UK pharmaceuticals trade agreement has outlined new commitments to increase NHS spending on innovative medicines. The agreement, detailed on April 2nd, includes raising the National Institute for Health and Care Excellence (NICE) cost-effectiveness threshold to £25,000-£35,000 per Quality Adjusted Life Year (QALY) and capping VPAG rebates for new medicines at 15%. The Oversight Committee, comprising major pharmaceutical companies like AbbVie, AstraZeneca, and Pfizer, along with NHS England and NICE, is tasked with reviewing the UK operating environment. The committee plans four 'sprints' to discuss competitiveness and economic growth, aiming to pilot new pricing models. The goal is to increase spending on new medicines to 0.35% of GDP by 2028, 0.4% by 2030, and 0.6% by 2036, with NHS health expenditure on medicines targeted to rise from 10% to 12% by 2036.