Science minister Lord Patrick Vallance has said it will be “necessary” to increase the price the NHS pays for medicines to prevent pharmaceutical investments from continuing to leave the UK.
Many global pharma majors have either paused or shelved investment plans in Britain citing a “difficult” environment and pressure on pricing.
Industry watchers claim the tariff pressure from US president Donald Trump has also been a factor in pushing firms away from the UK.
Lord Vallance told the BBC that price increases are necessary to solve the problem.
Lord Vallance was speaking on Wednesday (24) at the opening of US vaccine giant Moderna's new centre in Oxfordshire where millions of flu and Covid jabs will be made.
He hoped the government would end up with a deal of some sort because it's in the interest of the economy and patients.
Health secretary Wes Streeting, who was also present, told the BBC that a live conversation between government departments and the pharma industry on drug pricing was going on.
Moderna is investing more than £1bn in UK research and development as part of a 10-year partnership.
This comes amid announcements by companies like Merck and AstraZeneca that they are halting or pausing their investments in the UK.
Trump has put pressure on pharmaceutical companies to lower prices and invest more in the US.
British pharmaceutical giant GSK recently announced plans to put nearly £22 billion into US R&D and manufacturing over the next five years.
