UK set to raise prices of drugs in US agreement

Proposed medicine hikes are 'necessary', says science minister Patrick Vallance, to continue attracting investment in UK pharma, writes Barney Macintyre

- 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.