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Why are UK drug prices considered so low?
The UK’s NHS controls drug costs through strict pricing and rebate schemes, such as VPAG, which require companies to pay back a percentage of revenues if sales exceed targets. This keeps prices lower than in many other countries but can make the UK less attractive for pharmaceutical companies to invest in new medicines.
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How are drug companies reacting to UK policies?
Many pharma firms, including giants like Eli Lilly, have criticized UK drug prices and rebate schemes, calling them 'probably the worst in Europe.' Several companies have paused or canceled UK projects, citing an uncompetitive environment that discourages investment and innovation.
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What are the potential impacts on UK healthcare?
If investment continues to decline, there could be fewer new medicines available in the UK, affecting patient access to cutting-edge treatments. Reduced investment might also slow down medical research and innovation within the country, impacting overall healthcare quality.
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Could this lead to a decline in the UK’s life sciences sector?
Yes, experts warn that aggressive cost-control measures and strained relationships with pharma companies could weaken the UK’s life sciences industry, which has historically been a leader in medical research and development. A decline could have long-term economic and health consequences.
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Will this situation change in the future?
It’s uncertain. The UK government may need to balance cost savings with maintaining a competitive environment for pharma investment. Ongoing negotiations and policy adjustments could influence whether the UK remains an attractive place for pharmaceutical innovation.