A problem dating back to 1999 is now at the center of a major crisis in the UK’s pharmaceutical sector. The price thresholds set by NICE, the body that assesses drugs for the NHS, have not been updated in 25 years, a failure that industry leaders say is crippling investment and innovation.
This pricing stagnation means that the UK is not offering competitive rates for new, cutting-edge treatments. The Association of the British Pharmaceutical Industry is demanding an urgent update to bring these thresholds in line with decades of inflation and scientific advancement. As Sanofi’s UK chief stated, this is a key reason Britain is a “terrible place to sell medicines.”
The consequences of relying on this outdated model are now hitting home. Frustrated by the poor returns, MSD has scrapped its £1bn London R&D hub. Sanofi has cut its clinical trials in half and moved research work from Cambridge to Boston, US. Eli Lilly has also paused investment.
The message from the industry is unequivocal: the 1999 pricing model is no longer fit for purpose. They are calling on the government to work with NICE to create a modern framework that properly values medical innovation, warning that without it, the UK will continue to fall behind its global competitors.