The UK’s system for evaluating and paying for new medicines is being slammed by the pharmaceutical industry as hopelessly outdated, with price thresholds set by the National Institute for Health and Care Excellence (NICE) remaining unchanged since 1999. This stagnation is a key reason why executives now call Britain a “terrible place” to launch new drugs.
Paul Naish of Sanofi and Tom Keith-Roach of AstraZeneca are among the senior figures who have called for these thresholds to be raised. The Association of the British Pharmaceutical Industry (ABPI) argues that they must be updated to reflect more than two decades of inflation and scientific advancement, which would allow the NHS to adopt more innovative treatments.
This outdated system is contributing to a major loss of investment. Companies argue that the poor pricing environment makes it impossible to get a fair return. This has led to high-profile withdrawals, including MSD’s cancellation of its £1bn London research facility and Sanofi’s 50% cut in UK clinical trials.
The industry is clear that without reform, the situation will worsen. They are demanding a new framework that recognizes the value of modern medicines. The government is now under immense pressure to overhaul the NICE assessment process and create a commercial environment that encourages, rather than penalizes, pharmaceutical innovation.
