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US-UK Pharmaceutical Partnership
Thousands of NHS patients will get improved access to life-changing treatments, after the government today agreed the full text of its landmark US-UK pharmaceutical partnership.
UK pharmaceutical exports to the US — worth at least £5 billion a year — will enter the United States completely tariff free, for at least 3 years. This makes the UK the first country in the world to secure 0% tariffs on pharmaceutical exports to the US.
The partnership also accelerates NHS patients’ access to new medicines. Under the partnership, pharmaceutical companies have stronger incentives to launch innovative treatments in the UK, meaning patients can benefit from new cancer therapies, rare disease treatments, and other breakthrough medicines sooner — without waiting years after they become available elsewhere.
The partnership is a win for British patients, British businesses and the British economy. First announced in December, the partnership protects a UK pharmaceutical industry that added £28.5 billion to the UK economy in 2025, employs over 50,000 people in highly skilled, well-paid jobs, and exported almost £21 billion in pharmaceutical products worldwide last year.
On 31 March 2026, changes were made to the way that the National Institute for Health and Care Excellence (NICE) evaluates medicines, this means that some treatments that deliver significant health improvements but might previously have been turned down on cost grounds alone, will now be approved.
These changes respond directly to longstanding calls from patient groups, recognising that the cost-effectiveness threshold NICE uses has not been updated in over 2 decades. The updated threshold will therefore ensure that NICE is able to continue its world leading approach to assessing drugs and treatments, reflecting the huge changes in the economic, commercial and healthcare environment that we operate in.
The update to the NICE cost effectiveness threshold has already made a direct difference for NHS patients. Two medicines have already been recommended by NICE under the new threshold, giving patients immediate accessing to life-changing medicines — including a brain cancer drug for patients as young as 12 and a last-resort treatment for patients with a rare form of stomach cancer who had already exhausted other options. NHS patients in England will be able to access these through the health service, thanks to the new thresholds.
The UK has now also secured preferential terms for medical technology exports, with no additional new tariffs on medtech for at least 3 years — unlocking further investment in British manufacturing and strengthening the UK’s position as a world leader in health innovation.
The medtech sector employs over 195,000 people across the UK, and these preferential terms provide businesses with the certainty they need to invest, grow, and create jobs here.
The UK and US have also agreed to work together towards mutual recognition of medical device approvals — cutting red tape and supporting future innovative health technologies to reach patients on both sides of the Atlantic.
In addition, the Voluntary Scheme for Branded Medicines Pricing, Access and Growth (VPAG) headline payment percentage — the rebate pharmaceutical companies pay on branded medicines sold to the NHS — will be capped at a maximum of 15% until the end of the current scheme, which expires on 31 December 2028, providing the stability and predictability that life sciences companies need to invest and grow in the UK.
To drive further progress, the government and the UK life sciences industry have launched a new Joint Taskforce to accelerate innovation in the UK’s commercial environment for medicines. It will report back to ministers and industry leaders with initial findings, with pilot schemes expected to launch as early as September 2026.
The Taskforce will work with the pharmaceutical sector, NHS England, NICE, and patient and charity groups, to help the UK become the third most important life sciences economy by 2035—as outlined in the 10 Year Health Plan and Life Sciences Sector Plan.
The government has committed to doubling spending on innovative medicines as a proportion of GDP — from 0.3% to 0.6% over the next 10 years. This means NHS patients get wider and faster access to the treatments they need, including for cancer and other life-limiting conditions.
It also sends a clear signal to global investors that the UK is a serious, long-term partner for the life sciences industry — supporting economic growth and high-skilled jobs across the country.
As part of the UK’s ambition to be the leading Life Sciences Economy in Europe by 2030 and to maximise the economic benefits of these changes, we will be working closely with industry to help land investment into the UK.
The partnership will support greater investment in UK life sciences. It has already started generating results, such as £500 million investment in UK R&D and manufacturing in Surrey from the global biopharmaceutical company UCB which was announced in January, turbocharging economic growth.
Read the full press release below.
Source: UK Government: https://www.gov.uk/government/news/nhs-patients-and-british-businesses-to-benefit-from-historic-changes-to-medicines-access-following-pharmaceutical-partnership-with-usa
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