The chief executive of GSK, Emma Walmsley, has asserted that the United States is the premier destination for pharmaceutical companies to invest. In a statement delivered yesterday, she highlighted that the US leads globally in the introduction of new drugs and vaccines, positioning it alongside China as a critical market for business growth. Walmsley’s comments reflect a broader trend among UK pharmaceutical leaders, with Pascal Soriot, CEO of AstraZeneca, previously emphasizing the “vital importance of the US” market.
The UK government is actively working to bolster its pharmaceutical sector. On Wednesday, it announced plans to reduce the proportion of revenues from new medicine sales that companies are required to repay to the NHS from 22.5% to no more than 15% next year. This reduction addresses a key demand from the industry following stalled negotiations in late August, which led several significant companies, including AstraZeneca and US-based MSD/Merck, to either pause or cancel major investments in the UK.
Significantly, the UK government has been urged to increase spending on new NHS medicines by 25% as part of a zero-tariff agreement with the US administration. Former US President Donald Trump has criticized wealthier nations for contributing insufficiently to drug costs, suggesting that the US shoulders much of the financial burden due to elevated prices, influenced by a convoluted network of intermediaries.
In a recent consultation document, the Department of Health expressed intentions to grant ministers limited authority to set the cost-effectiveness threshold for new drugs. The National Institute for Health and Care Excellence (NICE) will also introduce a higher price threshold for medicines deemed cost-effective. The Association of the British Pharmaceutical Industry (ABPI) projects that spending on medicines could rise by approximately £1 billion over the next three years, prompting concerns regarding the impact on funding for healthcare staff and equipment.
While the government has confirmed that the revenue clawback rate for new medicines will decrease to 14.5% next year, the payment rates for older, branded medicines will stay stable, ranging from 10% to 35%. Richard Torbett, CEO of the ABPI, acknowledged the reduction in clawback rates as a positive development but stressed that further efforts are necessary to enhance the UK’s competitiveness, noting that current payment rates exceed those in comparable countries.
In her interview with the BBC, Walmsley reaffirmed GSK’s commitment to the US market, where the company generates half of its total revenue. GSK has also revealed plans to invest $30 billion (approximately £23 billion) in the US by 2030, underscoring its focus on growth opportunities across the Atlantic.
As the pharmaceutical landscape continues to evolve, the emphasis on the US as a key investment sector indicates a significant shift in focus for leading companies in the industry.
