UK Pharmaceutical industry at risk from government's 'sky-high' rebates system

Daily Mail​

11-06-2025

The UK's status as a leader in medical research is at risk from 'sky-high and unpredictable' repayments pharmaceutical firms hand the Government, says an industry boss.
Richard Torbett, chief executive of the Association of the British Pharmaceutical Industry, said the rebate system – where firms repay money they make through selling medicines to the NHS – was sending 'a terrible message to international investors'.
Rachel Reeves promised to support 'the UK's strengths in life sciences' and 'ensure patients get rapid access to the most clinically and cost-effective new technologies'.
The Treasury plans to invest up to £520million in drug manufacturing in the next five years.
Another £600million is earmarked for a health data research service to accelerate the discovery of new medicines.
But Torbett said more was needed. 'Over the past decade, accounting for inflation, the NHS budget has grown by a third in real terms, while investment in the most rigorously cost-benefit-tested part of health spending – investment in the medicines needed to treat people – has fallen from around 11 per cent to 9 per cent of the health budget,' he added.
And he attacked plans to increase what drug companies must repay from drug sales to 31.3 per cent, from 15.5 per cent.
'The sky-high and unpredictable payment rates send a terrible message to international investors when the UK is trying to position life sciences research and development as an engine for health and growth.
For the sake of patients, the NHS and the economy, we need a commitment to bring these unsustainable rates down.'