techUK statement on the UK–US pharmaceutical deal

The UK-US pharmaceuticals agreement marks a major step forward for investment, innovation and patient access. With new tariff-free trade, updated NICE thresholds and VPAG reforms, the UK is creating the right environment for a thriving life sciences ecosystem.

As the UK’s trade association for the technology sector with a strong and diverse health and life sciences membership, techUK welcomes the landmark UK-US pharmaceuticals agreement as a transformative step in strengthening the UK’s position as a global life sciences leader.

This deal not only secures access to vital medicines for NHS patients but also creates the right conditions for sustained investment and innovation across the sector. By securing zero tariffs on UK pharmaceutical exports and maintaining preferential terms for medical technologies, the UK is sending a clear signal to global investors that it is committed to fostering a thriving life sciences ecosystem. This aligns closely with techUK’s work to champion international trade as a driver of growth and innovation for UK health and care technologies.

Importantly, NICE will update its cost-effectiveness thresholds to £25,000–£35,000 per QALY (Quality Adjusted Life Year) and introduce a new value set for health-related quality of life. These changes will enable faster approval of breakthrough treatments, including therapies for cancer and rare diseases, ensuring patients benefit from cutting-edge innovation sooner. Combined with the UK’s mitigations under the US ‘Most Favoured Nation’ pricing initiative, these reforms will encourage global pharmaceutical companies to prioritise the UK for early launches, reinforcing the UK Government’s ambition to be Europe’s leading life sciences economy by 2030.

Alongside this, reforms to the Voluntary Scheme for Branded Medicines Pricing and Access (VPAG) will ease the financial burden on innovators by capping repayment rates for newer medicines at 15% for 2026–2028. These changes, combined with a commitment to design a more sustainable model from 2029 onwards, will give companies the confidence to invest in the life sciences sector.

techUK looks forward to working with government and industry partners to ensure these commitments translate into tangible benefits for patients, businesses, and the wider health and care system, while continuing to advocate for policies that support international trade and sustainable growth across the sector.

This milestone agreement is a transformative step for the UK life sciences sector, demonstrating the value of UK–US collaboration in driving investment and innovation'. By securing zero tariffs on pharmaceutical exports, unlocking new investment, and reforming NICE’s evaluation framework, the UK is creating an environment where innovation can thrive, and patients can access groundbreaking treatments faster. The commitment to increase medicines investment and deliver a more sustainable VPAG model will give industry the confidence to invest in the UK for the long term.

techUK will continue to champion policies that enable our members to bring transformative technologies to the NHS and support sustainable growth across the sector, and looks forward to working with our Government partners to do so.

Julian David

CEO, techUK

Robert Walker

Head of Health & Social Care, techUK

Rachel Kennedy

Programme Manager Health and Social Care, techUK

Lewis Stewart

Programme Manager ‑ Health and Social Care, techUK

Viola Pastorino

Junior Programme Manager, Health and Care Team, techUK

Fran Richiusa

Programme Team Assistant for Public Sector Markets, techUK

Health and Social Care Programme activities

techUK is helping its members navigate the complex space of digital health in the UK to ensure our NHS and social care sector is prepared for the challenges of the future. We help validate new ideas and build impactful strategies, ultimately ensuring that members are market-ready. Visit the programme page here.