The UK Government announced on 1 December 2025 a landmark deal that is expected to benefit NHS patients by expanding access to vital medicines, strengthening the UK’s pharmaceutical supply chain, and attracting new investment into the country’s life sciences sector.
The Deal is part of the UK–US Economic Prosperity Agreement and makes the UK the only nation in the world to secure zero per cent tariffs on pharmaceutical exports to the United States. UK Ministers said the move will protect UK manufacturing, reduce costs for exporters and help cement Britain’s status as a global hub for life sciences.
The Agreement also guarantees that no new tariffs will be placed on UK medical technology products entering the US market, offering companies greater certainty as they scale up and invest.
Major Investment and Boost for Innovation
The UK Government believes the agreement will strengthen global confidence in the UK life sciences sector, with firms including Moderna, Bristol Myers Squibb and BioNTech already committing billions in new investment.
As part of the package, the UK will increase its spending on innovative, effective medicines by around 25 per cent, the first major rise in over 20 years. The additional investment will allow the National Institute for Health and Care Excellence (NICE) to approve treatments that deliver significant patient benefit but previously may have fallen outside cost-effectiveness thresholds. These could include cutting-edge cancer therapies, treatments for rare diseases and breakthrough drugs for hard-to-manage conditions.
The US has also confirmed that the UK will receive favourable treatment under its ‘Most Favoured Nation’ drug pricing framework, helping ensure British patients continue to access the newest medicines faster.
Strengthening the UK’s Role in Global Drug Innovation
The UK Government outlined in its announcement how the UK has a strong track record in early access to innovative medicines, including Blenrep for multiple myeloma, Kimmtrak for eye cancer and Aucatzyl for leukaemia.
The new Deal aims to make such early access more common, reducing pressures on the NHS by improving long-term health outcomes.
Secretary of State for Science, Innovation and Technology, the Rt Hon Liz Kendall MP, said the deal will ensure UK patients get ‘cutting-edge medicines sooner’ while supporting high-skilled jobs and economic growth.
Secretary of State for Business and Trade, the Rt Hon Peter Kyle MP, said the agreement, which secures tariff-free access for £5 billion of annual UK pharmaceutical exports, positions the UK as a ‘global hub for life sciences’.
The measures complement the UK Government’s plans to halve clinical trial approval times and streamline access to health data for researchers through a new Health Data Research Service.
Industry and Charity Leaders Welcome the Agreement
The deal has been broadly welcomed across the life sciences sector.
Chris Boerner, CEO of Bristol Myers Squibb, said “Based on the UK commitments and increased investment, BMS the anticipates being able to invest upwards of $500 million over the next five years.”
Richard Torbett, Chief Executive of the Association of the British Pharmaceutical Industry (ABPI), said “The deal is an important step towards ensuring patients can access innovative medicines needed to improve wider NHS health outcomes.”
Leaders from major health charities also praised the Government’s reforms.
Dan Knowles, CEO of Brain Tumour Research, said “This new flexibility in the NICE cost effectiveness model will bring our patients greater hope.”
Dr Sophie Castell, Chief Executive of Myeloma UK, said “It is clear from today’s announcement that the government recognises that access to clinical trials and innovative medicines is essential to ongoing improvement in clinical outcomes.”
Meanwhile, Dr Rich Scott, Chief Executive of Genomics England, said the “Today’s announcement is an important step that will accelerate patient benefit, drive research and reinforce the UK’s global leadership in life sciences.”
A Pillar of the UK’s Long-Term Health Strategy
The Agreement supports the UK Government’s 10-Year Health Plan and Life Sciences Sector Plan, backed by over £2 billion of investment, aimed at establishing the UK as the world’s leading location for medical research, drug development and health innovation.
Ministers said the package will deliver benefits for patients, the NHS and the wider economy, ensuring that groundbreaking treatments continue to be developed, manufactured and accessed in the UK first.
