AbbVie and Eli Lilly Exit Voluntary UK Drug Pricing Agreement

The pharma giants AbbVie and Eli Lilly have backed out of an agreement between the UK government and Association of the British Pharmaceutical Industry (ABPI) that capped spending growth of branded medications to the NHS at 2% per year. The ABPI maintains that the government program’s requirements are behind the companies’ exits.

According to Dulan Lokuwithana, “The decision to revise 2023 repayment rates to 26.5% of revenue will require branded drugmakers to return £3.3B ($4.0B) sales revenue to the government this year, up from £0.6B and £1.8B in 2021 and 2022, respectively.”

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(Source: Seeking Alpha, January 16^th, 2023)