NHS patients might miss out on new cutting-edge treatments. This warning comes from pharmaceutical giant Novartis. The company blames skyrocketing costs for this potential loss. Consequently, a serious dispute over drug pricing has erupted. Recent talks between the government and drug firms collapsed. Health Secretary Wes Streeting met with pharmaceutical companies last week. However, they failed to reach an agreement.
Moreover, Novartis claims the UK is now “largely uninvestable”. The firm’s UK boss, Johan Kahlstrom, explained this position. He said systemic barriers are the main problem. Therefore, Novartis will not consider the UK for new investments. This includes manufacturing plants and research facilities. Additionally, the company will avoid advanced technology projects. This decision impacts future medical innovation.
Furthermore, a specific rebate rate is central to the conflict. This rebate applies to drug sales exceeding an agreed threshold. Initially, a 15% rate was expected. However, the actual rate soared to 23.5%. For comparison, Germany’s rate is only 7%. This high cost makes the UK market uncompetitive. Novartis says it already could not launch several medicines here. Sadly, these drugs are available elsewhere in Europe.
Meanwhile, the government defends its position. Officials say they made a generous offer. Their proposal aimed to accelerate growth in the pharma sector. It would have reduced payment rates year-on-year. Ultimately, this would free £1 billion for new medicines. Nevertheless, the industry rejected this offer. Wes Streeting accused drug firms of being short-sighted. He vowed not to let companies rip off the taxpayers.
Additionally, the drug assessment process faces criticism. The National Institute for Health and Care Excellence (NICE) approves new drugs. It uses a method called the “Qaly” to determine value. This measures cost per year of healthy life. NICE’s threshold has not changed since 1999. Novartis believes inflation makes the current figure outdated. The firm argues the threshold should be much higher now.
Moreover, the UK spends less on medicines than European neighbors. Only 9% of the NHS budget goes to drugs. Conversely, France spends 14% and Germany spends 15%. This underinvestment worries industry leaders. They fear research and investment will continue falling. Patient access to cutting-edge treatments will suffer. The UK risks falling down international league tables.
Ultimately, the Association of the British Pharmaceutical Industry (ABPI) seeks a solution. Chief Executive Richard Torbett called the rebates punitive. He said NICE’s methods are a quarter-century old. He still believes a resolution is possible. However, the standoff continues for now. Another firm, Gilead Sciences, also withdrew a cancer drug. It blamed the UK for undervaluing medicines.
In conclusion, patients await a resolution. The availability of future cutting-edge treatments hangs in the balance. Both sides must find common ground soon. Otherwise, the NHS will lag behind other health systems.
For more political updates, visit London Pulse News.
