UK–US pharmaceutical partnership: step change for health regulation, innovation and investment

Historic UK–US Pharmaceutical Partnership Signals Step Change for Health Regulation, Innovation and Investment

The UK Government’s newly finalised UK–US pharmaceutical partnership marks a significant moment for NHS patients, the life sciences sector, and the wider health and care innovation ecosystem. Agreed in full this week, the partnership delivers long sought reforms to medicines access and pricing, secures preferential trade terms for pharmaceuticals and medical technologies, and deepens regulatory cooperation with the United States.

For techUK members across pharmaceuticals, medical technologies, health data and digital innovation, the announcement represents both material short term wins and long term structural reform. It also reflects many of the priorities that techUK and industry has consistently raised around access, predictability, and internationally connected regulation.

Faster and fairer access to innovative medicines for NHS Patients

At the heart of the partnership is a major shift in how new medicines reach NHS patients.

On 31 March 2026, changes formally came into force regarding the way the National Institute for Health and Care Excellence (NICE) evaluates the cost effectiveness of medicines (from £20-30,000 QALY threshold to £25-35,000 QALY threshold). Crucially, this update modernises a cost effectiveness threshold that had not been revised for over two decades, despite huge changes in medical innovation, economic conditions, and health system pressures.

Trade, tariffs and a stronger investment signal

The partnership also delivers a major trade breakthrough. The UK has become the first country in the world to secure a commitment to 0% tariffs on pharmaceutical exports to the United States, for at least the next three years. UK pharmaceutical exports to the US – currently worth around £5 billion a year – will now enter tariff free, offering certainty for manufacturers and exporters at a time of global trade uncertainty.

In parallel, the UK has secured preferential terms for medical technology exports, with no new additional tariffs for at least three years. For a medtech sector employing more than 195,000 people across the UK, this provides crucial stability and confidence to invest in advanced manufacturing, supply chains and high skill jobs.

Together, these measures support a sector that added £28.5 billion to the UK economy in 2025, exported almost £21 billion in pharmaceutical products worldwide, and underpins the UK’s international competitiveness in health innovation.

Regulatory cooperation: MHRA and FDA deepen alignment

Alongside changes to pricing and trade, the partnership significantly advances regulatory cooperation.

The Medicines and Healthcare products Regulatory Agency (MHRA) and the US Food and Drug Administration (FDA) have committed to strengthening collaboration on medical device regulation, with the shared aim of supporting faster access to safe, high quality and innovative technologies for patients on both sides of the Atlantic.

This includes exploring routes toward mutual recognition mechanisms, reducing duplication in regulatory processes, and streamlining approvals – while maintaining strict, independent safety standards in both jurisdictions.

Greater alignment between two globally respected regulators has the potential to:

Reduce regulatory burden for innovators,
Improve predictability for manufacturers scaling internationally, and
Accelerate patient access to cutting edge medical technologies.

This commitment by the MHRA and FDA to deepen regulatory cooperation is an important step forward for patients and for the UK’s health sector. Greater alignment between trusted regulators will give innovators clearer, more predictable pathways and help ensure that safe, cutting edge technologies reach patients more quickly.

techUK has long called for smarter, internationally connected regulation, and this announcement shows real momentum toward reducing duplication while maintaining the highest standards of safety and effectiveness. Closer cooperation will be especially valuable for UK innovators and SMEs, helping them navigate regulatory requirements more effectively and bring breakthrough products to market faster.

We look forward to working with both regulators, industry, and the wider health system to help realise the benefits of this approach and strengthen the UK’s position as a global leader in medical technology.

Julian David

Chief Executive, techUK

techUK’s role and next steps

These announcements closely reflect priorities techUK has consistently championed. In particular, techUK has argued for:

A more competitive and predictable life sciences investment environment,
Smarter, internationally connected regulation, and
Faster patient access to proven innovation.

You can read more in techUK’s recent publications:

To support members in navigating the evolving regulatory landscape, techUK is also developing a regulatory pack in partnership with the MHRA, providing practical guidance on approvals, compliance and market access.

In parallel, the techUK Life Sciences Working Group is actively working with the Office for Life Sciences to support delivery of the Life Sciences Sector Plan, bringing together industry, policymakers and regulators to progress shared priorities.

Members who would like to get involved in this work, or who have questions about the partnership and its implications, are encouraged to contact [email protected].

Life Sciences Working Group

techUK's Life Sciences Working Group has been established to help identify how the technology industry can facilitate and deliver the Life Sciences Vision, setting out the role of digital health and care in achieving the ambition to set the UK apart as a world leader in life sciences and deliver life-changing innovations to patients.

Find out more

Rachel Kennedy

Programme Manager Health and Social Care, techUK

Rachel joined techUK in December 2024, as a Programme Manager in the Health and Social Care team.

Prior to this, Rachel worked at a specialist health and social care public affairs agency, working with a range of organisations and trade bodies across the medical technology, pharmaceutical, digital health and social care sectors. As well as this, Rachel was part of the Secretariat for a number of health and care related All-Party Parliamentary Groups.

Rachel has a Masters in Global Governance and Diplomacy from the University of Leeds, as well as a first-class honours in Politics BA from Newcastle University.

Read lessmore

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.