Lilly CEO Warns UK Is ‘Worst Country in Europe’ for Drug Prices, Pulls Back Investment
Dave Ricks criticises Britain’s pricing regime, citing steep rebates and paused biotech projects over profitability concerns
Dave Ricks, Chief Executive of Eli Lilly, has condemned the UK as “probably the worst country in Europe” for drug prices, warning that the current regime endangers access to new medicines and investor confidence.
He argues that unless the UK raises prices and reforms its Voluntary Scheme for Branded Medicines Pricing, Access and Growth (VPAG), it risks losing further innovation and investment.
Lilly has paused its £279 million Gateway Labs biotech incubator investment as a direct response to concerns over VPAG’s clawback rates, which have risen to nearly 23% this year.
Other companies including Merck, AstraZeneca, and Bristol Myers Squibb have similarly flagged the UK as an increasingly hostile environment for pharmaceutical R&D.
Under pressure from international policy shifts such as the Trump administration’s push for “most-favoured nation” (MFN) drug pricing, Eli Lilly has also increased the UK list price of its weight-loss drug Mounjaro by up to 170% for private patients.
The higher cost applies only to out-of-pocket purchases, while pricing for National Health Service (NHS) patients is unchanged.
Ricks described VPAG’s revenue rebate structure as punitive, saying the UK is charging companies “for their own success”.
He said that unless VPAG is replaced or radically reformed, Britain will continue to be bypassed for future medicine launches and biotech investment.
The criticism comes amid growing unease in the pharmaceutical industry that the UK’s life sciences strategy and pricing policies are losing alignment with global benchmarks.
These developments may force the government to readdress its approach, balancing NHS cost containment with incentives for innovation and external investment.
He argues that unless the UK raises prices and reforms its Voluntary Scheme for Branded Medicines Pricing, Access and Growth (VPAG), it risks losing further innovation and investment.
Lilly has paused its £279 million Gateway Labs biotech incubator investment as a direct response to concerns over VPAG’s clawback rates, which have risen to nearly 23% this year.
Other companies including Merck, AstraZeneca, and Bristol Myers Squibb have similarly flagged the UK as an increasingly hostile environment for pharmaceutical R&D.
Under pressure from international policy shifts such as the Trump administration’s push for “most-favoured nation” (MFN) drug pricing, Eli Lilly has also increased the UK list price of its weight-loss drug Mounjaro by up to 170% for private patients.
The higher cost applies only to out-of-pocket purchases, while pricing for National Health Service (NHS) patients is unchanged.
Ricks described VPAG’s revenue rebate structure as punitive, saying the UK is charging companies “for their own success”.
He said that unless VPAG is replaced or radically reformed, Britain will continue to be bypassed for future medicine launches and biotech investment.
The criticism comes amid growing unease in the pharmaceutical industry that the UK’s life sciences strategy and pricing policies are losing alignment with global benchmarks.
These developments may force the government to readdress its approach, balancing NHS cost containment with incentives for innovation and external investment.