The chief executive of GSK, Emma Walmsley, stated that the United States stands out as the most attractive location for pharmaceutical companies to invest. In remarks made yesterday, Walmsley emphasized that the US leads the global market in drug and vaccine launches, positioning it as a prime destination for business development. Her comments mirror sentiments expressed by other top executives in the UK pharmaceutical sector, including Pascal Soriot, CEO of AstraZeneca, who previously highlighted the “vital importance of the US” market.
The UK government has been actively seeking to bolster its pharmaceutical industry. Recently, it announced a significant change regarding the revenue clawback rate for new medicines sold to the National Health Service (NHS). Starting in March 2026, companies will be required to repay only up to 15% of their revenue from new medicine sales, down from the current rate of 22.5%. This reduction addresses a central concern for the pharmaceutical industry, which had previously faced stalled negotiations after discussions broke down in late August.
Concerns have been raised as AstraZeneca and US-based MSD/Merck paused or cancelled substantial investments in the UK due to the high revenue clawback rate. In addition, the UK government has committed to increasing its spending on new NHS medicines by 25% as part of a zero tariff agreement with the US administration. Donald Trump, the former US president, has criticized wealthy nations for not contributing enough to drug costs, which has historically placed a heavier financial burden on the US healthcare system.
The National Institute for Health and Care Excellence (NICE), responsible for evaluating drugs for NHS use, is set to raise the price threshold for determining cost-effectiveness for new medicines. This move, outlined in a consultation document released by the Department of Health, includes a proposal that would allow ministers to set the cost-effectiveness threshold for new drugs. The Association of the British Pharmaceutical Industry (ABPI) estimates that spending on medicines could rise by approximately £1 billion over the next three years, which raises concerns regarding potential impacts on funding for healthcare staff and equipment.
The government has announced that while the revenue clawback rate for new medicines will decrease to 14.5% next year, payment rates for older branded medicines will remain unchanged, fluctuating between 10% and 35%. Richard Torbett, the CEO of the ABPI, expressed cautious optimism regarding the decrease, stating, “It’s good that the amount of revenue companies will need to pay to the UK government has come down… but there is work to do to accelerate the NHS’s adoption and use of cost-effective medicines to improve patient care.”
During her interview with the BBC, Walmsley reiterated GSK’s commitment to its operations in the US, where the company generates half of its revenues. Notably, GSK has announced plans to invest $30 billion (£23 billion) in the US by 2030, underscoring its focus on this key market. As the landscape of pharmaceutical investment continues to evolve, the emphasis on the US market by leading executives highlights the competitive dynamics at play within the global pharmaceutical sector.
