top of page

Incubate Responds to U.S.-U.K. Economic Prosperity Deal on Drug Valuation

WASHINGTON (December 2) -- Yesterday, the United States and the United Kingdom announced a new agreement on pharmaceutical pricing as part of the Economic Prosperity Deal (EPD). The agreement is expected to increase the U.K.'s valuation of new medicines and expand its long-term investment in innovative therapies. The United States, in turn, committed to exempt U.K.-origin pharmaceuticals from any future Section 232 tariffs and to refrain from targeting U.K. pricing policies in potential Section 301 actions.

 

Incubate's executive director, John Stanford, issued the following statement in response to the announcement:

 

"Incubate is encouraged by the newly announced details of the U.S.-U.K. Economic Prosperity Deal (EPD), which move the U.K. toward a fairer valuation of medicines within its price-controlled system. We commend the Administration and their U.K. counterparts for pursuing a fact-based approach to valuing medical innovation.

 

"Instead of bowing to politically expedient rhetoric against the innovative biopharmaceutical industry and its investors, these leaders recognize simple truths: new medicines work, they are risky and costly to develop, and we should pursue more of them -- not less.

 

"The core reason European countries pay less for medicines than the United States is their systematic undervaluing of new and breakthrough therapies. And we know that when the global value of medical innovation is cut, the number of future breakthroughs falls with it. This agreement provides a model for how other wealthy nations can pay their fair share -- supporting patients, strengthening the innovation ecosystem, and sustaining the scientific leadership that, for now, remains centered in the United States."


###

 

About Incubate

Incubate is a 501(c)(4) organization of venture capital firms representing the patient, corporate, and investment communities. Our primary aim is to educate policymakers on the role of venture capital in bringing promising treatments to patients in need.


bottom of page