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The UK pharma industry and government have, once again, extended the deadline for companies to leave the 2024 Voluntary Scheme for Branded Medicines Pricing (VPAG) to November 14, 2025Companies that decide to leave must transfer to the statutory pricing scheme and cannot reverse their decision. Companies that do not submit notice must remain in the scheme throughout 2026Recent withdrawals and suspended projects echo mounting concerns about stagnation in the UK, with the VPAG rates being a large part of the issue. Industry leaders and government officials agree that urgent action is needed to restore confidence and secure the UK’s future as an innovation hub. Global policy shifts are compounding the issues the UK faces, as tariff threats and the Trump administration’s Most Favored Nation (MFN) loom, drawing investment from the UK to the U.S.
Cigna’s pharmacy benefit manager (PBM), Evernorth Health Services, announced an initiative to transition from its traditional rebate-based pharmacy benefit model to upfront discountsAccording to the company, the new approach will cut out its post-purchase rebate process by making the discounted price of a drug available upfront to U.S. patients. Cigna intends to adopt this new model for its fully insured lives beginning in 2027 and it will become the standard model available for all Evernorth pharmacy benefits clients beginning in 2028 Cigna is also adopting other changes, including a new reimbursement model starting in 2026 that compensates pharmacies based on their cost for medications plus a dispensing fee and additional reimbursement for the essential clinical services they provide to patients
While evidence grows that U.S. President Donald Trump’s Most Favored Nation (MFN) policy is already having direct effects on other markets, the Trump administration is considering a new investigation into drug prices. The probe would fall under Section 301 of the Trade Act of 1974 and could result in additional tariffs on imported pharmaceutical productsThe UK says that it is close to a deal with the U.S., potentially trading lower tariffs on UK pharma exports for higher spending on medicinesGermany's Federal Council (Bundestag) has adopted a resolution aimed at bolstering the pharmaceutical industry by cutting red tape and modernizing outdated regulatory frameworks
The Institute for Clinical and Economic Review (ICER) has published its latest Launch Price and Access Report, revealing that prescription drug launch prices continue to rise faster than inflation, GDP growth, and overall healthcare costsICER reported that inflation-adjusted drug launch prices rose by 24 percent for list prices and 51 percent for net prices between 2022 and 2024, outpacing inflation, GDP, and healthcare cost growthICER found that aligning the prices of the 23 drugs it previously reviewed with its Health Benefit Price Benchmark could have saved about 1.3 to 1.5 billion dollars in the first year after approval, freeing funds for higher-value treatments and services
Cipla has launched Yurpeak (tirzepatide) in India at the same price as Mounjaro (tirzepatide)The launch comes alongside a distribution and promotion agreement with Eli Lilly India, which will manufacture and supply the medicine. Cipla will then market it under the brand name YurpeakYurpeak will be available in the KwikPen presentation, a multi-dose, single-patient-use prefilled pen containing four once-weekly doses. It will come in six strengths: 2.5 mg, 5 mg, 7.5 mg, 10 mg, 12.5 mg, and 15 mg
The Trump administration is weighing a new investigation into drug prices, according to reports from the Financial TimesThe new probe would fall under Section 301 of the Trade Act of 1974 and could result in additional tariffs on imported pharmaceutical productsAccording to the Financial Times, the Trump administration is specifically investigating whether any U.S. trading partners are underpaying for drugs. However, no details have emerged on whether any new tariffs would stack on top of existing tariffs or trade deals
Evidence is growing that U.S. President Donald Trump’s Most Favored Nation (MFN) policy is already having direct effects on other markets, with a Japanese pharma association recently warning that four of 10 surveyed companies have seen impacts on products in Japan due to the policyAll 10 companies surveyed by EFPIA Japan responded that they believe MFN will impact their global pricing strategy. Seven of the 10 noted that products had already been affected in other countries, and four confirmed that their products in Japan had been directly affectedThe organization also outlined its concerns about the MFN policy in a clearly marked four-step infographic: 1) Japan prices are referenced in the U.S., 2) Pharmaceutical companies’ profitability in the U.S. market worsens, 3) Avoid launching new drugs in the Japanese market or consider withdrawing them to maintain U.S. prices, 4) Accelerated drug loss and lag in Japan
The UK says that it is close to a deal with the U.S., potentially trading lower tariffs on UK pharma exports for higher spending on medicinesAccording to the Financial Times, Britain would pay billions of pounds more to buy some medicines in exchange for the US imposing “low to zero” tariffs for UK pharmaceutical exports Varun Chandra, Sir Keir Starmer’s chief business adviser, made it clear that Britain is willing to increase its spending on medicines; however, she suggested that it would be a “significant one-off shift,” rather than an adjustment to the quality-adjusted life year (QALY) threshold like other reports have recently suggested
The Trump Administration struck two "Most Favored Nation" (MFN) drug pricing deals last week, while countries like Japan and Australia raised concerns that the MFN policy could already be directly affecting drug access in their countries France's draft Social Security Financing Bill (PLFSS) for 2026 introduces changes to France’s early and direct access systems for innovative medicines, as well as measures aimed at tightening the framework around pharmaceutical rebates and clawback paymentsChina's 11th National Volume-based Procurement (VBP) will see 396 bidders competing for nearly 3.7 billion drug doses, covering about 75% of hospital usage. The bidder application information disclosure meeting has been delayed from October 21 to October 27
EMD Serono has become the third major pharmaceutical company to announce a "Most Favored Nation" (MFN) drug pricing deal with the Trump administration intended to lower the cost of its prescription drugs for U.S. patientsThe voluntary agreement requires EMD Serono to offer its products at MFN pricing through the state Medicaid programs. The company has also committed to setting prices on new drugs launched in the U.S. at no more than prices in other wealthy countries. EMD Serono will also provide its portfolio of IVF medications at a significant discount through a new, government-run direct-to-patient (DTP) model called TrumpRx. In exchange, the company will be exempted from Section 232 tariffs for three yearsThe Trump administration simultaneously announced the first round of voucher recipients under the new Commissioner’s National Priority Voucher (CNPV) pilot program. EMD Serono is among the sponsors selected and will file its investigational fertility treatment, Pergoveris, for review under the program
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