This year, several major pharmaceutical companies have withdrawn approximately £2bn in proposed investment from the UK, with one threatening to withhold new medicines from NHS patients. Critics argue the industry is waging a coordinated campaign to force the government to increase drug spending.
Merck scrapped a £1bn research facility, AstraZeneca abandoned a £450m vaccine lab, and Bristol Myers Squibb (BMS) cancelled 34 NHS partnerships. BMS has also threatened to withhold its new schizophrenia drug unless the NHS pays its desired price. A senior government official described the rapid succession of threats as “sinister” and “very coordinated,” though the industry denies collusion.
The dispute centres on NHS drug pricing mechanisms, particularly the National Institute for Health and Care Excellence (Nice) and the voluntary scheme for branded medicines pricing, access and growth (VPAG). The industry argues these systems suppress prices unsustainably, while the government maintains they ensure value for taxpayers.
US President Donald Trump has added pressure, demanding the UK equalise global drug prices or face tariffs. During a recent state visit, Trump’s ambassador pushed Chancellor Rachel Reeves for concessions. The science minister, Patrick Vallance, has suggested price rises are needed, but Health Secretary Wes Streeting insists the current offer is generous.
NHS England spent nearly £20bn on medicines last year, and research indicates branded drugs remain overpriced relative to patient benefits. Campaigners warn that yielding to industry demands would divert stretched NHS budgets away from patient care.
