Pharma firms pile pressure on the UK as Trump’s drug pricing order looms

Global pharmaceutical firms in the UK are under pressure to make a better deal, as a sleep of drawn investments and drug pricing talks on US President Donald Trump’s visit to Britain.

Pharmaceutical companies are urging the UK authorities to pay more for drugs and to improve the competitive landscape before the time of rapid approach at the end of this month under Trump’s most preferred nation (MFN) drug pricing order.

But with a slight agitation from the government so far, the firms are drawing plugs on proposed investments in the UK, which some analysts suggest that there may be a conversation strategy to promote the UK support.

Global Healthcare and Industrial Equity Research Analyst in Investor told CNBC’s “Europe Early Edition” on Monday, “We think at this point, a conversation strategy and many of these companies will not go away completely and will designed their investment again,”

Since the new US administration came to the office, “production space, innovation, and values ​​are all subject to discussion,” in ING Research, Healthcare Economist Deederic Stading in ING Research told CNBC by email.

A spokesman for the UK’s Department of Science, Technology and Innovation stated that the UK was “one of the most attractive places to invest in the world,” but admitted that it was “more to” to attract funding and unlock innovation.

Anglo-Soldish Drug Maker Astrazheneka On Friday, it was said that it was stopping investment of 200 million pounds ($ 271.37 million) in its Cambridge Research Site, cutting the government’s support in its latest retreat from Britain this year.

This step came two days after American Pharma firm MerkKnown as MSD in Europe, scattered the research center of £ 1 billion in London, which cited the UK competition and the “underwelling of new drugs”.

Zepbound Makeer Ellie lily It was also said that it was stopping investment in the UK laboratory site, while it is waiting for “more clarity around the UK Life Sciences environment”.

“They are working together to ensure that they have the maximum impact on the Trump administration … and are working together with other governments,” Muthetere said about pharmaceutical companies and pharma lobby groups.

“We think it’s something we will see from all companies. They are working together because they all benefit, or they all become hit at the same time,” he said.

Astrazeneca, Merc and Elli Lily refused to comment on the suggestions of sechechetere of coordinated action when contacted by CNBC.

Stading of ING said that in response to the UK Trump administration, the initial casualties of pharma firms renovated their investment strategies showed, but warned that suits could be followed in other countries as well.

Stading said, “Pharma companies will allocate an increased portion of their capital towards the US at the price of investment in competitive geography.”

He said, “UK is the first practical matter of this … Although we are also seeing various pharma companies showing the current capacity towards the US, which can prove to be another threat to the UK and European economies, generally.”

Major pharma firms have been given till 29 September to introduce the Trump administration with “binding commitments” to reduce their drug prices at the levels paid by other advanced countries.

Trump has long been prolonged to European countries not to pay the same pricing for their medicines and fail to invest in innovation.

The US President is scheduled to arrive at Britain on Tuesday for a three -day state visit, the UK and the US to arrive a few months after the Trump administration’s leading trade deal. Although this agreement underlines “preference treatment” for pharmaceuticals, it improves the “overall environment” for the region on Britain.

The UK government flagged life science as one of its eight priority areas when it announced its industrial strategy earlier this year. Nevertheless, the sector-specific scheme has overwhelmed many people in the industry, Merc on Wednesday said that Britain has not made meaningful progress towards addressing the lack of investment in life science industry. “

Meanwhile, last month separated last month without discussing drug pricing between pharma companies and the British government.

Extensive questions have arisen on Britain’s investment scenario. A report released by the Association of the British Pharmaceutical Industry (ABPI) on Wednesday had finished Britain’s Ranking for Forest Investment (FDI) in the second place in 2017 in 2023 in the pharma sector.

ABPI CEO Richard Turbate said in a statement last week, “Without a more competitive environment for investment, we risk losing to other countries that make bold moves to attract mobile investment internationally.”

Alex Altman, partner of Chartered Accountants and Business Advisors Lubock Fine, urged the UK government to follow the US lead to double the efforts to attract foreign investment. The Trump administration has urged global drug manufacturers to increase American manufacturing, indicate a multibibilian-dollar investment in recent months, including pharma giants. Novartis, Sanofi and Rosh.

He said, “The US government is working very hard to win investment in its country. The UK will have to show some similar drives,” they said in the emails made.

The latest figures of the UK Department of Trade and Trade (DBT) fell to 1,375 in the year 2024/25 tax year, below 1,555 in 2023/24.

Nevertheless, Selechetere of Investec mentions that Britain is still in a strong position to capitalize on its “world class scientific basis” and win over pharma investment, if it carries forward its game in conversation.

“Britain is in a stunning position … to further research and win this task. They just have to play the ball,” Sutechetere said.