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Daily Mail
2 days ago
- Business
- Daily Mail
UK Pharmaceutical industry at risk from government's 'sky-high' rebates system
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.'
Business Mayor
11-05-2025
- Business
- Business Mayor
Pharma giants pin US tariff hopes on NHS price cap deal
Updated: 21:51 BST, 10 May 2025 Ministers are reviewing a controversial medicine tax that pharmaceutical companies say makes Britain 'uninvestable' as part of a wider US trade deal, The Mail on Sunday understands. Donald Trump's transatlantic trade pact last week slashed tariffs on British cars, steel and aluminium, but left the pharmaceutical sector in limbo. Drugs firms, including AstraZeneca and GSK, still don't know what, if any, tariffs they may have to pay. The President threatened to slap a 25 per cent tariff on UK pharmaceuticals entering the US, which last year totalled £6.6 billion. But last week's deal promised the sector 'significantly preferential treatment', with ministers vowing 'to improve the overall environment for pharmaceutical companies operating in the UK'. Industry sources say this refers to a drug-pricing scheme that already puts investment in the UK at risk. Under it, drugmakers discount the price of medicine sold in bulk to the NHS in England. The aim is to stop the health service busting its £20 billion-a-year drugs budget by imposing a cap. Any revenues above that limit are paid back by the drugs companies to the NHS in the form of a rebate. But the rebate has soared as inflation rocketed and expensive new drugs became available. Drug companies now pay back almost a quarter of their UK sales to the Government – far more than the 15 per cent estimated – meaning they make a lower return on their investment in research and development. The average rebate is 5.7 per cent in France, 7 per cent in Germany and 9 per cent in Ireland. Drugmakers say repayment rates are 'not viable' and put investment in the UK at risk – just as the Government earmarks life sciences as one of eight sectors key to kickstarting growth. The Association of the British Pharmaceutical Industry (ABPI) said: The medicine levy 'makes the UK uninvestable.' The trade body's members include US drugs giants such as Pfizer, Bristol Myers Squibb, Amgen, Johnson & Johnson, Merck and Biogen, which also operate in the UK and would stand to benefit from lower rebates. Health Secretary Wes Streeting is reviewing the rebate, which is likely to be wrapped in with ongoing US tariff talks, sources add. The UK spends a smaller share of its overall healthcare costs on medicines than any comparable country, according to the ABPI. Just 9 per cent of healthcare spending goes on drugs, compared with 17 per cent in Germany and Italy and 15 per cent in France. It is still unclear what type of special treatment British pharma firms would receive from Trump. Mark Dayan at the Nuffield Trust health think-tank said details were still 'very vague'. ABPI boss Richard Torbett said a free trade deal with the US was 'critical' for patients to have access to the medicines and vaccines they need, adding: 'US tariffs on UK pharmaceuticals run counter to that goal and should be avoided. We will also continue our discussions with the UK Government to ensure Britain's life science sector can return to international competitiveness to enhance UK attractiveness as a destination for investment.' Read More Royal Mail boss could be 'let go quietly' after deal with unions A Government spokeswoman said the US trade deal 'presents rich opportunities for collaboration on pharmaceuticals, life sciences and advanced technologies'. The review of medicine pricing is due to be complete next month, she added. Easy investing and ready-made portfolios Free fund dealing and investment ideas Flat-fee investing from £4.99 per month Account and trading fee-free ETF investing Free share dealing and no account fee Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence. Compare the best investing account for you
Times
08-05-2025
- Business
- Times
Drugs industry says medicine rebate system ‘holds back growth'
The pharmaceutical industry has hit out at a government consultation on a controversial NHS medicine rebate system as a 'failed approach of the past and an example of the inertia in thinking that is holding back UK growth'. In a highly critical response to a department of health consultation to raise a statutory payment rate for newer branded medicines, the Association of the British Pharmaceutical Industry (ABPI) warned that an internationally uncompetitive system was undermining the government's attempts to make the life sciences sector a 'key pillar' of its industrial strategy. Ministers have identified life sciences as one of eight important future growth sectors as part of its industrial strategy, a key plank of Labour's manifesto to overcome lacklustre economic growth. Rachel Reeves, the chancellor,
Yahoo
19-03-2025
- Business
- Yahoo
UK Pharma Industry Trade Association Restores Wegovy/Ozempic Maker Novo Nordisk's Membership After 2 Years Of Suspension
On Monday, Novo Nordisk A/S (NYSE:NVO) returned to full membership of the Association of the British Pharmaceutical Industry (ABPI) following extensive audits of the Wegovy maker's compliance procedures and governance by the Prescription Medicines Code of Practice Authority (PMCPA). The Association of the British Pharmaceutical Industry is the trade association for over 120 companies in the U.K. In March 2023, the ABPI Board decided to suspend Novo Nordisk from membership of the ABPI for two years following a complaint related to a LinkedIn post that did not make clear Novo Nordisk's involvement nor state whether it was a promotional or non-promotional meeting for its obesity that the course was for a therapy area, Novo Nordisk was involved in and ended up giving a Patient Group Direction (PGD) to ensure that even non-prescribers could indirectly prescribe its product. This appeared to be promotional. The complaint alleged that the PGD given was part of what Novo Nordisk offered individual health professionals. This had value and was given to individuals for their benefit to run private clinics, which was bribing health professionals with an inducement to prescribe. "Over the past two years, Novo Nordisk has responded positively and actively to the requirements laid down by the ABPI Board, and I am pleased to welcome them back into full engagement as ABPI members," said Richard Torbett, CEO of the ABPI, on Monday. In March, Novo Nordisk introduced NovoCare Pharmacy, a direct-to-patient delivery service to improve access to Wegovy (semaglutide) for cash-paying patients. The program offers all dosage strengths of the weight-loss medication at a reduced price of $499 per month for uninsured individuals or those whose insurance does not cover obesity treatments. Read Next: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — this is your last chance to become an investor for $0.80 per share. If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it? Photo by KK Stock via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article UK Pharma Industry Trade Association Restores Wegovy/Ozempic Maker Novo Nordisk's Membership After 2 Years Of Suspension originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
The Independent
17-02-2025
- Business
- The Independent
Novo Nordisk reprimanded for allegedly failing to disclose payments
The manufacturer of the weight loss jab Wegovy has been reprimanded for allegedly failing to disclose or accurately report payments to healthcare and patient organisations. Novo Nordisk breached clauses under the Association of the British Pharmaceutical Industry (ABPI) code of practice, according to the Prescription Medicines Code Of Practice Authority (PMCPA). The company said it is taking the issue 'extremely seriously' and 'is dedicated to working transparently and ethically'. The complaint was made by three individuals, who were colleagues at two separate universities, regarding the alleged failure to report payments to two healthcare organisations. Following an 'in-depth investigation', the complainants claimed Novo Nordisk allegedly failed to report, inaccurately reported, and misreported payments to healthcare organisations and patient organisations between 2015 and 2022. Novo Nordisk is dedicated to working transparently and ethically, taking the reporting of these historical transfers of value extremely seriously Novo Nordisk spokesman The probe alleged 30 organisations were missed from the company's disclosures and claims Novo Nordisk misreported 65 payments. The PMCPA said Novo Nordisk accepted breaches of clauses 24.1, 24.4, 24.5, 27.7, 9.1 and 2 of the 2019 code and clauses 28.1, 29.1, 29.2, 31.1, 31.2, 5.1 and 2 of the 2021 code. These clauses include failing to document and publicly disclose annually certain payments made directly or indirectly to health professionals, other relevant decision-makers and healthcare organisations, failing to make publicly available a list of patient organisations which it supports, and failing to make disclosures annually in respect of each calendar year in the first six months after the end of the calendar year in which the payments were made. It added that its panel 'decided on balance not to report Novo Nordisk to the code of practice appeal board for it to decide whether the imposition of further sanctions was appropriate'. It noted that the company 'had been the subject of several cases in relation to the failure to appropriately disclose transfers of value,' adding that 'additional sanctions had been imposed and that Novo Nordisk was already the subject of the audit process at the request of the code of practice appeal board'. It said the 'matters raised in this case were closely similar to matters already before the appeal board both in terms of the nature of the matters considered and that the amount undisclosed was significant'. Novo Nordisk has its headquarters in Bagsvaerd in Denmark, and was founded in 1923. Among its products is semaglutide, sold under the brand names Ozempic and Wegovy, the latter of which has been approved to treat obesity on the NHS. We continue to strengthen our compliance framework in the UK and remain committed to adhering to the ABPI code of practice and maintaining the highest possible ethical standards required by the pharmaceutical industry Novo Nordisk spokesman A Novo Nordisk spokesman said: 'Novo Nordisk is dedicated to working transparently and ethically, taking the reporting of these historical transfers of value extremely seriously. 'In fact, most of the missed disclosures included in this case were already part of our self-reported voluntary admission in November 2023 to the PMCPA. 'For those that were not included in that admission, these have been captured through our improved processes and have been accurately disclosed. 'All transfers of value related to this case were related to legitimate activities, in line with the UK pharmaceutical industry's code of practice. 'We continue to strengthen our compliance framework in the UK and remain committed to adhering to the ABPI code of practice and maintaining the highest possible ethical standards required by the pharmaceutical industry.'
