UK pharma set for reforms amid VPAG concerns and NHS overhaul

U.K. – The UK pharma industry is set to see key resolutions on pressing issues such as the Voluntary Scheme for Branded Medicines Pricing and Access (VPAG), innovative therapies, and systemic reforms.

This follows remarks by Health Secretary Wes Streeting, who highlighted upcoming changes in the wake of NHS England’s recent abolition.

In his closing address at the 2025 Association of the British Pharmaceutical Industry (ABPI) conference in London on 3 April, Streeting emphasized the need to unlock the “unrealized potential of life sciences in this country.”

Streeting acknowledged that the industry has faced significant challenges, notably with the increased clawback rates under the VPAG scheme.

This mechanism allows the NHS to reclaim a portion of payments for new medicines to ensure spending remains within an agreed budget.

Alarmingly, the clawback rate for 2025 has risen from 15.3% to 22.9%, a move that has unsettled many pharmaceutical companies.

According to Streeting, the government had not anticipated such a sharp increase, noting that the scheme was originally negotiated by the previous Conservative administration.

However, he reassured industry representatives that the government, with the backing of Prime Minister Kier Starmer, is working to design a solution.

This resolution will be detailed in Streeting’s forthcoming ten-year plan, expected to be published in June 2025.

In addition to VPAG concerns, Streeting addressed the critical issue of improving patient access to innovative medicines via the NHS.

He pointed out that long waiting times and restricted drug access have driven many UK patients toward private healthcare, a trend that the government is determined to reverse.

Reforms in the drug approval process led by the National Institute for Health and Care Excellence (NICE) are part of this initiative.

Streeting praised NICE’s chief executive, Dr. Samantha Roberts, for her “modernizing, reforming, and hard-headed” approach to accelerating drug approvals and ensuring equitable distribution of approved treatments across the country.

Furthermore, the Secretary of State discussed the recent decision to abolish NHS England, clarifying that the move is aimed at reducing waste, inefficiency, and bureaucratic layers within the health system.

He stressed that this restructuring is not a power grab but a necessary step to streamline operations, boost clinical trial activity, and improve access to cutting-edge treatments by leveraging the extensive patient data held by the NHS.