ABPI publishes blog post urging government to reform UK medicines investment environment
The Association of the British Pharmaceutical Industry (ABPI) has published a blog post calling on the government to strengthen the UK’s commercial environment for medicines investment. Building on The King’s Fund’s recent explainer on medicines pricing, the ABPI's Executive Director of Point Access, David Watson, sets out as case for reform to safeguard the UK’s global standing in life sciences and secure long-term patient access to innovative treatments. The ABPI warns that the current design of the Voluntary Scheme for branded Medicines Pricing, Access and Growth (VPAG) is failing to meet its objectives and raises concerns about the UK’s ability to meet the ambitions of the 10 Year Health Plan for England and the Life Sciences Sector Plan. From 1 January 2025, levies under VPAG rose by 50%, requiring companies to repay around £3.5bn—£1bn more than expected. The levy on innovative products is 22.9%, rising to 35% for older medicines. The ABPI says this is driving disinvestment, with companies withdrawing UK investments, cutting headcounts and retreating from NHS partnerships. The UK’s uptake of new medicines is 52% of the average in comparator countries in year one, and only 62% after five years. The ABPI warns that without reform, the UK risks missing its 2030 ambition to lead Europe in commercial R&D and patient access