The Association of the British Pharmaceutical Industry (ABPI) has announced that negotiations with the UK government regarding revisions to the 2024 Voluntary Scheme for Branded Medicines Pricing, Access, and Growth (VPAG) have ended without agreement. The mid-scheme review, initiated in April 2025, sought to address rising payment rates under VPAG, which currently require pharmaceutical companies to return between 23.5–35.6% of their NHS sales revenue significantly higher than rates in comparable countries. Despite collaborative efforts, no consensus was reached on reforms to reduce these rates or to update the valuation methods used by NICE, which have remained unchanged for nearly 25 years. The failure to resolve these issues threatens the UK’s ambitions for life sciences growth, patient access to innovation, and international competitiveness.

The Association of the British Pharmaceutical Industry (ABPI) and the government have agreed to extend the deadline for companies to give notice of leaving the 2024 voluntary scheme for branded medicines pricing, access, and growth (VPAG) to 14 November 2025, offering a further two-week extension from the previous 31 October deadline. This extension reduces the minimum notice period from two months to six weeks, affording companies extra time to decide amid global uncertainty in the life sciences sector. Companies that fail to give notice by the deadline must remain in the VPAG scheme for 2026, while those opting to leave will transition to the Statutory Scheme for branded medicines.

The Association of the British Pharmaceutical Industry (ABPI) has announced the creation of a joint taskforce with the UK government to support innovation in the medicines commercial landscape. The initiative forms part of the delivery of the NHS 10-Year Health Plan and the Life Sciences Sector Plan and introduces a targeted ‘sprint’ process with industry to identify ways to speed up progress towards the government’s goal of making the UK the third leading global life sciences economy by 2035.

The Association of the British Pharmaceutical Industry (ABPI) has published its pre-Budget submission urging the government to address declining life sciences investment through regulatory reforms. The submission calls for updates to the National Institute for Health and Care Excellence (NICE) cost-effectiveness thresholds, which have remained unchanged for over 20 years, and reduction of branded medicines revenue rebate rates under the Voluntary Scheme for Branded Medicines (VPAG) to single digits. The ABPI reports that foreign direct investment in UK life sciences has fallen by 58% since 2021, while pharmaceutical research and development investment dropped by £100m in 2023. The submission includes six policy recommendations: maintaining existing investment incentives including Patent Box and research and development tax credits, updating Treasury Green Book methodology for medicines manufacturing appraisal, restoring the Medicines and Healthcare products Regulatory Agency's Trading Fund status, improving Global Talent Visa competitiveness, and ensuring VAT exemption for 'Free of Charge' medicines under early access schemes. The ABPI estimates these measures could recover between £2.2bn and £3.4bn of research and development investment by 2028.

The Association of the British Pharmaceutical Industry (ABPI) has highlighted challenges in bringing new medicines for rare diseases to National Health Service (NHS) patients, ahead of Rare Disease Day on 28 February 2025. The ABPI cites the low likelihood of positive reimbursement decisions from National Institute for Health and Care Excellence (NICE) and unpredictable rebate rates under the Voluntary Scheme as key barriers. The ABPI urges the UK to enhance its attractiveness for developing and launching rare disease treatments.

The Association of the British Pharmaceutical Industry (ABPI) has published commentary by its Director of Patient Access, David Watson, on findings from its 2025 Medicines Impact and Investment Survey, which reflects company decision-making prior to the UK’s December 2025 policy changes. The survey identifies high and volatile Voluntary Scheme for Branded Medicines Pricing, Access and Growth (VPAG) payment rates and National Institute for Health and Care Excellence (NICE) cost-effectiveness thresholds as the two most significant factors influencing UK investment and medicines launch decisions at that time. According to respondents, these conditions negatively affected research and development, clinical trials, manufacturing, workforce investment, and the prioritisation and timing of UK launches, contributing to delayed, private-only, or foregone access for some NHS patients.

The Association of the British Pharmaceutical Industry (ABPI) has set out measures on the UK’s life sciences industry recommended to be implemented in Chancellor Jeremy Hunt’s Budget on 6 March 2024, following the 2023 Autumn Statement, to support British life sciences leadership and ensure the UK continues to be a destination for launching innovative medicines.

The Association of the British Pharmaceutical Industry (ABPI) has published its assessment of the first six-month review of the 2024 voluntary scheme for branded medicines pricing, access and growth (VPAG) following the publication of the minutes of the 22 July 2024 meeting held between the Department of Health and Social Care, NHS England and ABPI. The 2024 VPAG scheme, which started in January 2024, aims to ensure affordability of branded medicines, promote better patient outcomes, and support UK economic growth. The ABPI notes that identifying reference prices for older medicines has been complex, causing delays and uncertainty for companies assessing payment rates. There are concerns about potential market withdrawals, supply issues, or price increases. The ABPI also highlights that the 'exceptional circumstances' clause allows companies to seek price adjustments for unviable products. Also, progress has been made on measures to improve adoption of innovative medicines, and the industry's investment fund for patient access and manufacturing has launched. The ABPI underlines that ongoing monitoring and partnership between the government and industry are crucial to address any unintended consequences and ensure the scheme meets its objectives.

The Association of the British Pharmaceutical Industry (ABPI) has published a blog post summarising discussions at the latest Operational Review of the 2024 Voluntary Scheme for Branded Medicines Pricing, Access and Growth (VPAG), held in late December 2025. It confirms that the payment rate for newer medicines will be 14.5% in 2026, rising to 15.5% when the additional levy funding the Investment Programme is included. Although the recent UK/US pharmaceuticals agreement includes a 15% cap on newer medicine rates for the next three years, the ABPI states that the cap was not required for 2026, with the lower headline rate attributed to changes in NHS prescribing patterns and reduced sales of newer medicines. The ABPI adds that work is underway to update VPAG rules ahead of the 2027 rate-setting process, to ensure future rate decisions align with proposals to raise net prices for new medicines. It also references system data indicating slower growth in the use of newer branded medicines, changes in appraisal timelines and early signs of a recovery in clinical trial recruitment. Partners are expected to place greater emphasis on real-world outcomes, including tracking patient access in routine NHS care, and to undertake further analysis of the scheme’s impact on older branded medicines, where early data show mixed pricing and volume trends. The ABPI notes that more than 20 projects are active under the VPAG Investment Programme and that work to rebuild the Innovation Scorecard is ongoing, with publication expected in 2027. In addition, a joint government–industry evidence review on medicines pricing and economic and patient outcomes is planned for 2026 as part of implementing the UK/US agreement, alongside the launch of ‘Medicines and Investment Sprints’ in the first quarter of 2026.

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

The Association of the British Pharmaceutical Industry (ABPI) has published a report examining how improved access to rare disease medicines could deliver health and economic benefits, indicating that the UK could position itself as a European leader in this area. The report estimates that improved access could be associated with up to £4.4 billion in lifetime health benefits and around £19 billion in productivity gains over ten years. More than 3.5 million people in the UK are affected by rare diseases, yet only around 5% of these conditions have an effective treatment. The report states that just over one-third of EU-approved orphan medicines are fully accessible on the NHS, meaning the UK lags behind comparable European countries. According to the analysis, matching the best-performing European country on access could result in approximately 158,000 additional patients receiving treatment and 68,000 quality-adjusted life years gained, with annual productivity gains estimated at £2.3 billion. The report also highlights the wider economic impact of rare diseases, noting that one in seven patients and carers has reduced or stopped working and that affected individuals are nearly three times more likely to be unemployed. Delays in diagnosis and limited treatment options are estimated to cost the UK economy £14.9 billion annually. The report concludes that improving access to rare disease medicines, alongside continued investment in research and development, could have implications for patients, the NHS and the wider economy, as well as the UK’s position relative to other countries in this field.

The Association of the British Pharmaceutical Industry (ABPI) has published a report that assesses the UK’s attractiveness in global pharmaceutical investment, compared with 12 other countries across four key areas: pre-clinical research, clinical trials, manufacturing and distribution, and headquarters and affiliates. The report highlights both the UK’s strengths and weaknesses in pharmaceutical investment, while identifying areas for potential growth. It also reveals a 58% decrease in life sciences foreign direct investment (FDI), falling from £1.897bn in 2021 to £795m in 2023 and investment in pharmaceutical research and development (R&D) declining by almost £100m in the same year. In response to the report, the Health Research Authority (HRA) endorsed the report and highlighted the importance of accelerating research timelines to improve patient care, noting the HRA’s active role in the UK Clinical Research Delivery (UKCRD) programme to streamline and speed up clinical trial delivery.