The chief executive of GSK, Emma Walmsley, has asserted that the United States stands out as the most attractive destination for pharmaceutical investments. In a recent statement, Walmsley highlighted that the US leads globally in the introduction of new drugs and vaccines, making it a critical market for business development. Her remarks follow similar endorsements from executives of other major pharmaceutical firms, including AstraZeneca’s Pascal Soriot, who emphasized the “vital importance of the US” for the industry.
Walmsley’s comments come at a pivotal time when the UK government is attempting to bolster its pharmaceutical sector. On March 15, 2024, the government announced a reduction in the proportion of revenues from new medicine sales that pharmaceutical companies must reimburse to the NHS. The rate will decrease from 22.5% to a maximum of 15% in the upcoming year. This change addresses a key concern of the pharmaceutical sector, which had previously seen negotiations collapse in August 2023 over the high clawback rate.
Several prominent companies, including AstraZeneca and the US-based MSD/Merck, responded to the ongoing uncertainty by pausing or cancelling significant investments in the UK. The government has also committed to increasing spending on new NHS medicines by 25% as part of a zero tariff agreement with the US administration. Former President Donald Trump has criticized wealthier nations for contributing less to drug costs, placing a heavier financial burden on the US market.
Historically, drug prices in the US have been higher due to a complicated system of intermediaries. In an effort to align prices with cost-effectiveness, the National Institute for Health and Care Excellence plans to adjust its threshold for evaluating new medicines. The Department of Health, in a consultation document released recently, proposed granting ministers limited authority to set the cost-effectiveness threshold for new drugs.
According to the Association of the British Pharmaceutical Industry (ABPI), spending on medicines could rise by approximately £1 billion over the next three years. Critics express concern that this could divert funds away from essential health services, including staffing and equipment. While the clawback rate for new medicines is expected to drop to 14.5% in 2025, payment rates for older branded drugs will remain unchanged, fluctuating between 10% and 35%.
Richard Torbett, CEO of the ABPI, acknowledged the positive aspect of the reduced clawback rate. He stated, “It’s good that the amount of revenue companies will need to pay to the UK government has come down in 2026.” Despite this, Torbett pointed out that the proposed 15% cap is only a preliminary measure in enhancing the UK’s competitive standing. He emphasized that the payment rates are still significantly higher than in comparable countries, and further efforts are necessary to expedite the NHS’s adoption of cost-effective medicines.
In her interview with the BBC, Walmsley affirmed GSK’s commitment to its interests in the US, where the company generates half of its revenues. Recently, GSK outlined plans to invest $30 billion (£23 billion) in the US by 2030, solidifying its focus on this lucrative market. As the global pharmaceutical landscape continues to evolve, the emphasis on investment strategies and government policies will play a crucial role in shaping the future of drug development and healthcare accessibility.
