US ambassador warns pharma firms will quit UK if NHS does not pay more for drugs
US pharmaceutical companies will “shut down” their sites in the UK if the NHS does not pay more for drugs, the US ambassador to the UK has warned.
Warren Stephens on Wednesday said further American businesses will axe future investments if “there are not changes made and fast”.
It comes as the Government is mulling raising the amount the health service in England pays firms for medicines by up to 25% under plans to stave off tariffs threatened by Donald Trump.
The row has been seen as a reason why US-based Merck and AstraZeneca cancelled or paused investments in the UK in recent months.
Mr Stephens told a British-American Business gala lunch at London’s Savoy Hotel: “The UK needs to continue addressing its pricing structures for medicines to ensure it can compete for investment from US firms.
“Multiple pharma companies have cancelled future investments here, and there is a growing list of drugs not being offered to UK citizens.
“If there are not changes made and fast, pharma businesses will not only cancel future investments, they will shut down their facilities in the UK.
“This would be a major blow to a country that prides itself, rightly so, on its life sciences sector.
“I understand progress is being made on this as we speak, which is a good first step.”
Last month it was reported that officials briefed proposals, including raising the threshold used by England’s NHS spending watchdog by 25%, to the Trump administration.
Energy policy
Mr Trump’s man in London also hit out at the Labour Government’s energy policy, describing it as “the chief obstacle” to US-UK trade ties.
He said: “Energy costs in the United Kingdom are too high on which to run an industrialised economy.
“Every business I meet, in every sector, complains to me that energy costs make the UK an expensive, and difficult, place to do business. For example, the permitting process to get virtually anything done is a headwind to any company looking to expand.
“It does not take an economic savant to know that is not a good combination.
Improving the economy all starts and ends with energy. If there are not major reforms to UK energy policy, then the UK’s position as a premier global economy is vulnerable.”
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Anyone any doubt that trump is an existential threat to the UK? How is Stephens here anyway, examine his past.
Trump is a mob boss. A bully. He is gutting the US to fill his pockets and will do the same here. Trump has proven that if you roll over he will just keep kicking you. He is a thug.
And his useful idiot, Farage, will hand trump the keys if reform ever get power.
I might be a little deluded and out of touch but this months’ budget needs to carry those ‘tough decisions’ but tough for whom? The multi quadrillionaire shareholder tyranny and when they threaten to leave, we say feel free. You’ll be leaving most of your I’ll gotten gains behind because we’re taxing them. Bon voyage!
Some pm decision fit in when you think of pressure from the US. Brexit made us hugely vulnerable.
Looks like they already are leaving https://www.standard.co.uk/news/london/london-millionaire-exodus-moscow-b1221474.html
Plus Virgin Atlantic has closed its’ Gatwick base, British Airways has reduced Gatwick flights and both maintained Heathrow flights.
£200m loss of taxes from Astra Zeneca moving to New York Stock Exchange https://www.theguardian.com/business/nils-pratley-on-finance/2025/nov/03/reeves-recognise-reality-astrazeneca-killed-stamp-duty-shares
The UK is in a low growth, low productivity downward spiral.
Brexit. Farages baby.
Nice health service you got here. Would be a shame if something happened to it.
The NHS is a very large consumer so these pharmaceutical companies would be extremely stupid to lose the NHS.
US pharma benefits being in the UK because of a highly skilled workforce and access to our unique NHS data. It is Trump who is driving this demand for drug price increases. Our centralised purchasing means we can negotiate good value for money, unlike the US.
Maybe we should reduce our dependence on some of these drugs. Too much stuff being peddled by G.P’s and hospital consultants when a more controlled approach to usage would yield cost savings and health benefits.
Which ones.
Anything that gets imported from USA could be rationed for a start. Then start revisiting the data on repeat prescription and find people are scoffing pills for years with little or no review procedures.
USA healthcare system is poor and is getting worse https://www.nbcnews.com/news/amp/rcna235052
Why should the UK government pay high prices to USA companies?
Instead we should be maximising the benefit that Brexit gives the UK economy and creating new organisations to develop drugs with countries such as India where manufacturing organisations are expanding.
NHS Cymru and a University should take USA drugs, value engineered the production process and sell worldwide- I.e. copy how China value engineered Tesla cars.
He is right. Until Blair screwed it up the NHS paid for drugs and this sustained the pharmaceutical industry which made large tax contributions to the treasury. Once the NHS became less efficient at testing drugs and wouldn’t pay for them this valuable industry started to disappear. If it goes completely we will have to pay whatever they ask for drugs as we will be importing 100% of them.
But the job of the NHS is to spend taxpayers money efficiently, and the job of the Treasury is to collect taxes. Joining the dots as you’re doing is the job for the Department of the Economy. And there isn’t one.
All good News! Nationalise the drug producing industry abd reduce NHS costs.
It’s the drug research activity we need to get a grip on. That in turn drives drug manufacturing which we can locate here especially as there is a great deal of expertise in the country.
They wont give up that market.