Headlines
UK government, pharma industry still far away from life sciences plan agreement
Published by Global Banking & Finance Review®
Posted on July 2, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on July 2, 2025
2 min readLast updated: January 23, 2026
The UK government and pharma industry are in a dispute over drug pricing, delaying the life sciences plan. AstraZeneca considers a US stock listing.
LONDON (Reuters) -The British government and the pharmaceutical industry remain far apart in a dispute over drug pricing that has delayed publication of a long-pending plan for the UK life sciences sector.
WHY IT'S IMPORTANT
The review is intended to outline how the UK can cut red tape and boost a sector the government identifies as one of eight strategic areas for driving economic growth.
The disagreement comes amid simmering frustration in the pharma industry. The Times reported on Tuesday that AstraZeneca, the UK stock market's most valuable company, is considering shifting its stock market listing to the United States.
KEY QUOTE
"Talks continue but we're not yet close to a landing zone for a deal," one pharma industry source said. "We're not close" to a deal, a second industry source said.
CONTEXT
The "life sciences review" was due to published on Monday. The Financial Times reported on Wednesday that the delay stemmed from the impasse over drug pricing.
WHAT'S NEXT
The first source said a deal could still be reached this summer if the government signals a path towards more fairly valuing medicines. Companies sharply criticise policies like VPAG (Voluntary Scheme for Branded Medicines Pricing, Access and Growth), which requires them to return between a quarter and a third of revenues from UK drug revenues to the National Health Service.
THE RESPONSE
Talks are ongoing and confidential, said a spokesperson for the government's health ministry, adding that economic growth was the government's top priority.
(Reporting by Maggie Fick and Alistair Smout in London. Editing by Mark Potter)
The main issue delaying the life sciences plan is a dispute over drug pricing between the UK government and the pharmaceutical industry.
The life sciences review aims to outline how the UK can reduce red tape and enhance a sector deemed crucial for economic growth.
AstraZeneca is reportedly considering shifting its stock listing abroad amid frustrations with the ongoing negotiations over drug pricing.
According to a spokesperson for the government's health ministry, economic growth is the government's top priority.
There is a possibility of reaching a deal this summer if the government indicates a willingness to fairly value medicines.
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