New York Post·2025-12-01 17:37Core Points - The United States and Britain have reached a deal to eliminate tariffs on British pharmaceutical products and medical technology in exchange for increased spending on US medicines and a revision of drug valuation methods [1][2] - The UK will increase the net price it pays for new US medicines by 25%, while UK-made medicines and medical technology will be exempt from certain tariffs [1][5] - The UK's NICE will raise its cost-effectiveness threshold for new drugs from £30,000 ($39,789) to £35,000, allowing for better alignment with the pharmaceutical industry's economic environment [3] Industry Impact - The British pharmaceutical industry group ABPI believes the deal will enhance access to new medicines for British patients and attract investment from drugmakers [6] - Shares of UK-based drugmakers GSK and AstraZeneca remained stable following the announcement, indicating limited immediate market reaction [6] - Bristol Myers Squibb anticipates investing upwards of $500 million in the UK over the next five years due to the commitments made under the deal [12] Regulatory Changes - The agreement includes a commitment from Britain to reduce the rebate rate under the voluntary pricing scheme to 15% by 2026, addressing a point of contention between the pharmaceutical sector and the government [11] - The revised NICE framework will apply to all new medicines, not just those from the US, but will not impact the pricing of existing treatments [3] Economic Context - Pharmaceuticals constitute a significant portion of UK exports to the US, making up one-fifth of all UK exports by value, which positions the UK favorably in international trade [13] - The deal is seen as a step towards creating a more attractive environment for life sciences in the UK, which has faced criticism for its challenging operating conditions [10][7]