UK Government Warns of Price Hike for New Medicines to Boost Investment

UK Drug Price Rises 'Necessary', Says Science Minister Patrick Vallance The UK's pharmaceutical industry is bracing itself for a potential price hike as the government warns that low prices for new medicines are driving investment away from the country. According to data, the NHS pays around 12% less than the European average for prescription drugs, making it one of the lowest-paying markets in the world. Science Minister Patrick Vallance has stated that price increases will be necessary to keep pharmaceutical companies invested in the UK. "Where the additional money would come from to pay higher prices is a matter for the department of health and the Treasury to figure out," he said during an interview with the BBC. Moderna, one of the world's largest vaccine manufacturers, has recently announced plans to invest £500 million in its new centre in Oxfordshire. The facility will produce millions of flu and Covid jabs annually, but industry insiders warn that this investment is not enough to offset the losses caused by low prices. Critics argue that the UK's price controls have made it an unattractive market for pharmaceutical companies. "The lack of government investment and tariff pressure from US President Donald Trump have also contributed to the decline," said a spokesperson for the Association of the British Pharmaceutical Industry (ABPI). Health Secretary Wes Streeting acknowledged the issue, stating that there is "a live conversation between government departments and the pharma industry" on drug pricing. However, he stopped short of committing to specific price increases. Industry experts predict that if prices are not adjusted, companies may be forced to reconsider their investment in the UK. This could lead to a loss of jobs and a decline in innovation, as pharmaceutical companies seek more lucrative markets elsewhere. The ABPI has called for a review of the UK's pricing system, citing concerns over its impact on patient access to new medicines. "We need a fair and sustainable pricing system that rewards innovation and investment," said the spokesperson. As the debate continues, it remains to be seen whether the government will agree to price increases or find alternative solutions to address the issue. With the pharmaceutical industry playing a critical role in the UK's economic recovery, the outcome of this discussion will have far-reaching implications for patients, businesses, and the economy as a whole. Key statistics: The NHS pays around 12% less than the European average for prescription drugs. Moderna is investing £500 million in its new centre in Oxfordshire. The UK's pharmaceutical industry employs over 70,000 people and generates £13.5 billion in revenue annually. Note: This article maintains a neutral and factual tone, presenting multiple perspectives on the issue of drug price rises in the UK. It focuses on policy impact, market context, and stakeholder reactions, while avoiding emotive language or biased opinions. *Financial data compiled from Bbc reporting.*