US-UK pharma agreement finalised putting UK pharma ahead of others

The UK pharma export market to the US is worth £5bn a year.

Meanwhile, this confirms that the maximum rebate for new medicines under the current five year VPAG (Voluntary Scheme for Branded Medicines Pricing and Growth) for pharma reimbursement in the UK will be capped at 15% per year.  

In other details:

• Medical technologies supplied to the US will not have additional tariffs.
• The US and the UK will work together so pharma businesses do not delay launch of medicines in the UK.  There is a headline commitment to increase spending on new medicines that reaches 0.6% of GDP by 2036, as well as an increase in overall spending on medicines to 10-12% of the overall NHS budget by 2036.
• The US and UK will work on a US UK Pharmaceutical Supply Chain Partnership to have stronger security and resilience in crisis management and managing medicine shortages.
• The US and UK will progress reciprocal recognition on marketing authorisations for medical devices.
• There will be an annual review of the arrangement, from the UK side involving the Department of Health and Social Care (DHSC) and the Department for Business and Trade (DBT).
• There will be an industry-government working group to consult on the next scheme to replace the current VPAG deal (which runs until 31 December 2028), including much lower clawback rates for some medicines.  

This has confirmed much of what had been trailed at the end of 2025, but the publication of the agreement is excellent news for UK pharma.

The 2026 PING Conference, which VWV is running in association with the pharma trade organisation EMIG, is Britain's Life Sciences Strategy - How Will The UK Lead Europe by 2030? This deal puts the UK ahead of other countries in the export of medicines to the crucial US pharma market, and also paints a positive picture for investment in medicines spend in the UK. It is win-win.

The Conference, taking place on 8 June, will hear thoughts from George Freeman MP, as well as Lawrence Tallon (the pro-innovation MHRA CEO), a former Number 10 Downing Street health policy special adviser, and industry leaders including in manufacturing and genomics.

If you have any thoughts on this deal or would like to be invited to the PING Conference, please contact Paul Gershlick in our Pharmaceuticals and Life Sciences team