Britain finalised a US-UK pharmaceutical trade deal on April 2, 2026, granting zero tariffs on UK-made medicines, drug ingredients, and medical technology exports to the US for at least three years.1
In return, the UK agrees to increase net prices paid by the NHS for new US medicines by around 25%, involving changes to NICE's cost-effectiveness threshold from £20,000-£30,000 to £25,000-£35,000 per QALY.12
The deal, part of a broader US-UK trade accord signed in June 2025, protects UK exports from US Section 232 and 301 tariffs and shields against 'most favoured nation' pricing policies.13
UK Business Secretary Peter Kyle stated the deal supports the pharmaceutical sector, protects jobs, and strengthens US-UK ties; pharmaceuticals make up 20% of UK goods exports to the US.1
Companies like GSK welcomed the certainty, while investments from firms like Bristol Myers Squibb (£500M over five years) signal renewed pharma R&D interest in the UK.12
The agreement includes closer MHRA-FDA cooperation on medical device regulations to speed patient access to new technologies.1
Sources:
1. https://www.marketscreener.com/news/britain-agrees-full-text-of-us-uk-pharmaceutical-trade-deal-ce7e51dddb8bf422
2. https://evrimagaci.org/gpt/uk-and-us-strike-landmark-threeyear-pharma-tariff-deal-518430
3. https://ustr.gov/about/policy-offices/press-office/press-releases/2025/december/us-government-announces-agreement-principle-united-kingdom-pharmaceutical-pricing