The Rest Is Money 231. Can The NHS Afford The UK-US Pharma Deal?
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Dec 4, 2025 Lord Patrick Vallance, a leading physician and former UK Chief Scientific Adviser, discusses the implications of the UK-US pharma deal on the NHS. He explains why the NHS is paying higher prices for new medicines and the potential of UK life sciences to attract investment. Vallance emphasizes the importance of scaling startups, the innovative power of British tech, and discusses the need for a shift in government procurement strategies. He also reflects on important pandemic lessons and the role of in-person connections in business.
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Deal Removes Tariff Risk And Raises Drug Access
- The UK–US pharma agreement removes tariff risk and raises willingness to pay for new medicines.
- Patrick Vallance says this will get innovative drugs into the NHS faster and attract industry investment to the UK.
Higher Cost‑Per‑Quality Threshold Lets More Drugs In
- The deal raises the NHS cost-per-quality threshold used by NICE, allowing more medicines to pass cost-effectiveness tests.
- That higher threshold means some previously excluded treatments could be approved faster for patients.
Plan For Higher NHS Drug Spending
- Expect NHS medicines spending to rise from about 10% back toward 12% of the health budget over time.
- Policymakers should treat this as a reallocation toward modern, often curative, medicines that can save future acute care costs.