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UK set to raise prices of drugs in US agreement
The Observer
|November 23, 2025
Proposed medicine hikes are 'necessary', says science minister Patrick Vallance, to continue attracting investment in UK pharma, writes Barney Macintyre
The UK government is in the late stages of agreeing a major drug pricing deal with the White House, sources close to the matter say.
The Trump administration is reviewing a proposal that would raise the thresholds at which the NHS deems a medicine cost effective, in effect paying billions more for US-made drugs in exchange for lower tariffs on UK pharmaceutical exports.
Last week, Switzerland struck an agreement to cap US tariffs on drugs and other key goods at 15%, but the UK is determined to seek a 0% rate.
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