Mounjaro maker seeks NHS drug price rises in exchange for UK investment

Lead

The US pharmaceutical company behind the weight-loss drug Mounjaro has said it will restart its planned UK investments if ministers agree to raise NHS drug prices and end a rebate scheme for branded medicines. Patrik Jonsson, president of Eli Lilly’s international business, told the Financial Times that talks with the UK government are ongoing and that he is "optimistic" about reaching an agreement this summer for Britain to pay more for its medicines.

Eli Lilly was among several pharmaceutical companies that paused or abandoned nearly £25bn in planned UK investments last year, including a laboratory site in central London. Jonsson said the resumption of investment would depend on the outcome of negotiations with the government, adding that prices for medicines in the UK have been "far too low for far too long" and that the current cost-effectiveness threshold is not enough.

Coverage Comparison

Reporting on this story comes primarily from The Guardian, which has published two articles on the subject. Both pieces focus on the same core development—Eli Lilly’s demands and the broader UK-US medicines deal—but they differ in emphasis. One article highlights Eli Lilly’s optimism and the potential benefits of the deal, while the other focuses on the controversy and criticism the deal has attracted. The Guardian’s coverage has been described as neutral in one piece and critical in the other, though both outlets note the significant financial implications for the NHS.

Key Claims

• Eli Lilly is in talks with UK ministers to increase NHS drug prices and end a rebate scheme, according to the Financial Times interview with Patrik Jonsson.
• The company paused its £25bn UK investment last year, including a London laboratory site, and will unpause it if the government agrees to its demands, as reported by The Guardian.
• As part of a UK-US drug pricing deal, the NHS will double its spending on new medicines from 0.3% of GDP to 0.6% of GDP by 2035, according to UK government announcements.
• The deal could cost the NHS up to £9bn a year by 2035, according to campaigners and estimates cited by The Guardian.
• British drug exports to the US will avoid tariffs imposed by President Donald Trump, as part of the same deal, The Guardian reports.
• The Liberal Democrats and campaign groups such as Global Justice Now have voiced major scepticism, warning that the deal will lead to cuts in NHS services and higher drug prices.

Perspectives

Eli Lilly and industry: The company argues that UK drug prices have been too low for over two decades and that higher payments are necessary to encourage investment and innovation. Eli Lilly’s president suggests that new pricing models could link payments to outcomes, such as helping patients return to work.

UK government: Ministers have hailed the deal as a win for British patients and businesses, highlighting increased access to life-extending drugs and tariff-free access to the US market. They point to recent approvals of cancer medicines as proof of the deal’s benefits.

Critics and campaigners: The Liberal Democrats and groups like Global Justice Now argue that the deal prioritises pharmaceutical profits over NHS funding. They warn that increased spending on drugs will strain the NHS budget and could lead to cuts in other services. The campaign group has accused Prime Minister Keir Starmer of "taking an axe to the NHS to pacify Donald Trump and big pharma’s demand for higher medicines prices."

Analysis

The UK-US medicines deal marks a significant shift in how the NHS funds new treatments. The decision to raise the cost-effectiveness threshold for drugs from £30,000 to £35,000 per quality-adjusted life year (QALY) is the first such increase in 27 years. While the government frames this as a way to give patients faster access to innovative treatments, critics note that the additional costs will be borne by the NHS budget, not the Treasury.

The potential £9bn annual cost by 2035 represents a substantial increase in NHS spending on medicines. According to Dr Andrew Hill, a drugs expert at the University of Liverpool, this could have serious implications for other NHS priorities. His estimates have been widely cited by campaigners, though the government maintains that the deal will boost the UK’s pharmaceutical industry and protect jobs.

The deal’s inclusion of tariff exemptions for British drug exports to the US is seen as a defensive measure against President Trump’s proposed tariffs on imported medicines. This aspect has received less attention than the direct impact on NHS drug pricing, but it underscores the geopolitical dimension of the agreement.

As of now, the full details of the deal and its impact on the NHS have not been independently verified by all parties. The Guardian’s reporting draws on interviews with Eli Lilly executives, government announcements, and campaign groups, but no official cost-benefit analysis has been published. The Liberal Democrats have called for more transparency, and campaign groups have urged the government to reconsider the deal's terms.

In the coming months, the outcome of Eli Lilly’s negotiations with UK ministers will be a key indicator of whether the deal will lead to sustained pharmaceutical investment in the UK. For now, the company has made clear that its participation depends on the government's willingness to accept higher drug prices.