Science Minister Patrick Vallance has indicated that the NHS may need to increase its expenditure on medicines to prevent pharmaceutical investment from departing the UK. His comments came in light of recent announcements by major drug companies regarding the suspension or cancellation of projects in the UK.
Concerns have been raised by industry critics surrounding low pricing for new drugs, insufficient government investment, and pressure from international policies, such as those from the US, as factors driving companies away. Vallance stated, “price increases are going to be a necessary part” of addressing these challenges. He noted that determining the source of the additional funding for these price increases would require collaboration between the Department of Health and the Treasury.
Vallance made these remarks during the inauguration of Moderna’s new facility in Oxfordshire, which is set to produce millions of flu and COVID-19 vaccines. Health Secretary Wes Streeting, present at the event, mentioned ongoing discussions between the government and the pharmaceutical industry regarding drug pricing.
The UK government highlighted Moderna’s commitment of over £1 billion to UK research and development as part of a ten-year partnership aimed at creating new treatments and bolstering pandemic resilience. This investment contrasts with decisions made by other firms, such as Merck, which recently abandoned a £1 billion project in Liverpool, and AstraZeneca, which paused a £200 million investment in Cambridge.
Furthermore, Novartis indicated that NHS patients might lose access to advanced treatments due to escalating costs, citing “systemic barriers” as a reason for not considering the UK for major investments in manufacturing and research. Eli Lilly also expressed concerns, describing the UK as potentially the least favorable country in Europe for drug pricing.
Over the past decade, spending on medicines within the NHS has decreased from 15% to 9% of its budget, while other developed countries allocate between 14% and 20%. Recent negotiations between Streeting and pharmaceutical firms regarding drug costs broke down last month, although the UK government claimed to have made a significant offer to stimulate growth in the sector. Streeting has indicated that conversations on this matter continue, both domestically and in relation to international partners, particularly the US.
Source: https://www.bbc.com/news/articles/cre53qgey0eo?at_medium=RSS&at_campaign=rss