A “battle” between the UK government and the pharmaceutical industry over drug prices has forced the government to delay publication of its plan for the life sciences, according to The Financial Times. 

The release of the life sciences review, initially scheduled for the start of this week, was delayed in large part because both sides had been unable to reach an agreement over drug pricing, claimed the report. 

The government has identified life sciences as one of eight key sectors where the UK has particular strength and which could contribute to rising economic growth in the years ahead. 

However, health secretary Wes Streeting reportedly remains in negotiations with the pharmaceutical industry after a recent increase in the statutory scheme payment rate and a proposed rise in the voluntary scheme. 

At the time of the statutory scheme rise, Richard Torbett, Chief Executive of the Association of the British Pharmaceutical Industry (ABPI), said: “The UK’s sky-high and unpredictable payment rates send a terrible message to international investors at a time when the UK is trying to position life sciences research and development as an engine for health and growth.” 

Alongside this, US President Donald Trump has signed an Executive Order calling for a “most-favoured-nation price” to bring prices for US patients in line with similar developed nations. 

According to The Financial Times, companies are wary of agreeing to low prices in the UK, if it could be used to reduce prices in their largest market, the US.  

The newspaper reports that an offer to try to improve the voluntary system was presented to the ABPI two weeks ago, but has not yet been accepted. 

A government spokesperson told The Financial Times: “We continue to work closely with industry on a rapid review of our voluntary scheme for medicines pricing. With our work and investment, we will make sure the next game changers in medicine are developed here in Britain, for the benefit of our health at home and abroad.” 

AstraZeneca considers UK exit

Reflecting fears that pharma will take investment abroad, The Times has reported that AstraZeneca is considering moving its stock market listing from London, where it is the exchange’s most valuable company, to the United States. 

Earlier this year, the company decided to abandon plans for a planned £450 million vaccine facility in Speke in Merseyside. 

CEO Pascal Soriot has privately expressed a preference to shift AstraZeneca’s listing on multiple occasions and has also discussed relocating the company’s headquarters, The Times said. 

Meanwhile, the company has been increasing its US investment over the last year, including a $3.5 billion investment in domestic manufacturing by the end of 2026. 

Diana Turner, Senior Digital Content Editor, DDW