US, UK nearing zero-tariff deal on pharma products

(Sharecast News) - The UK and US are reportedly closing in on a trade deal that will result in zero tariffs on pharmaceutical products exported into the States. The White House is expected to make an announcement at some point on Monday, Reuters said, citing people close to the matter.

According to The Times, which first reported the news, the UK government will lower an industry sales rebate rate on NHS drug prices and improve the service's cost-effectiveness measure for drugs. The government will also commit to ramp up its spending on NHS medicines.

The development follows months of negotiations after the two sides said in May that they were looking at "significantly preferential treatment outcomes on pharmaceuticals".

Patrick Vallance, the UK minister for science, research and innovation, had warned back in October that, for new medicines at least, "some degree of price increase is inevitable".