US drugmakers AbbVie and Eli Lilly have become the first pharmaceutical groups to pull out of a pricing agreement with the UK government as they take a stance against a sharp rise in the levy on branded medicines.
Eli Lilly, known for its diabetes drugs, said the levy, which now amounts to more than a quarter of UK sales, had a “punishing” impact on innovation, leading to the UK falling behind other major countries. AbbVie, which makes one of the world’s best-selling drugs, Humira, warned the scheme was having an impact on its ability to operate in the UK.
The levy is part of a voluntary scheme that evolved from deals made near the start of the NHS. In 2019, the industry agreed to a cap that ensured the NHS would not have to pay more than a 2 per cent increase each year for branded drugs, however much it buys.