Archive · 25 Sep 2025
UK Drug Pricing Under Pressure Amid Pharmaceutical Industry Concerns
The UK and pharmaceutical companies are in a disagreement about drug prices.
The government has a plan to keep drug costs down, but drug companies say it's not working.
They claim the UK should pay more for medicine.
If the UK does not increase prices, some drug companies might not invest in the UK.
One company even increased the price of a weight-loss drug in the UK.
The government has hinted it might pay more for drugs in the future, but talks are currently stuck.
Eli Lilly's CEO criticized the UK's drug pricing scheme, calling it the "worst in Europe."
The Voluntary Scheme for Branded Medicines Pricing (VPAG) aims to control NHS medicine costs.
Drug companies must repay a percentage of sales if NHS spending exceeds a set cap.
A recent rebate for newer branded drugs rose to nearly 23%.
Pharmaceutical companies warn that investment in the UK may be paused due to the pricing scheme.
- Who
- Pharmaceutical companies and the UK government.
- What
- Disagreement over drug pricing in the UK.
- When
- The Voluntary Scheme for Branded Medicines Pricing, Access and Growth (VPAG) runs from 2024 to 2028.
- Where
- The United Kingdom.
- Why
- Pharmaceutical companies are concerned about the current drug pricing scheme, which they say is not profitable enough.
Pharmaceutical Companies
UK Government
Drug Prices
Pharmaceutical Companies
The UK should increase drug prices to incentivize investment and access to new medications.
UK Government
The government aims to control the cost of medicines to keep the NHS financially viable.
Rebate Scheme
Pharmaceutical Companies
The "clawback scheme" effectively penalizes the success of pharmaceutical companies and should be scrapped.
UK Government
The rebate is necessary to ensure value for money and control government spending.
- Scheme Name
- Voluntary Scheme for Branded Medicines Pricing, Access and Growth (VPAG)
- Scheme Duration
- 2024 to 2028
- Rebate Increase
- Nearly 23% (for newer branded drugs)
- Pharmaceutical Company
- Eli Lilly
- Eli Lilly's Claim
- UK is "probably the worst country in Europe" for drug prices
- Potential Investment Pause
- Almost £2 billion in the UK
- Drug Price Increase
- Mounjaro (weight-loss drug) price increased by 170%