Opportunity unlocked: How UK medicine spend policy can free the life sciences sector to drive growth

New research published today finds that the UK could lose out on £11 billion in pharmaceuticals research and development (R&D) investment by 2033, and see fewer new medicine launches in the NHS, unless very high and unpredictable medicines sales clawbacks are addressed.

In the UK, a medicines pricing control mechanism, known as the Voluntary Scheme or VPAG, now requires companies to pay the Department of Health and Social Care up to a quarter to a third (23.5%-35.6%) of their UK revenue from sales of branded medicines to the NHS.

Our new report finds that if very high new medicine payment rates of above 20 per cent of companies’ UK revenue continue, the UK could lose out on £11bn of R&D investment by 2033. However, if new medicine payment rates are returned to pre-2023 levels of below 10 per cent, such losses can still be avoided.