UK Ranked as Europe’s Most Expensive Country for Drug Prices: Insights from Mounjaro Manufacturer

September 24, 2025

Eli Lilly CEO Calls UK ‘Worst in Europe’ for Drug Pricing

London, UK – the Chief Executive of Eli Lilly, Dave Ricks, has delivered a scathing assessment of the United Kingdom’s pharmaceutical pricing environment, labeling it “probably the worst country in Europe.” His comments come amid escalating tensions between the pharmaceutical industry and the British government, and have ignited a debate regarding innovation, investment, and patient access to cutting-edge medications.

Pricing Policies and Investment Concerns

Ricks argued that the UK’s stringent pricing regulations,which allow for lower drug costs compared to other developed nations,are deterring investment and possibly blocking access to new pharmaceutical advancements. He asserted that unless substantial changes are implemented,including the elimination of a rebate scheme,the UK risks being sidelined in the rollout of innovative treatments. The Eli Lilly executive believes the current structure disincentivizes companies from introducing novel therapies to the British market.

This critique arrives as several major pharmaceutical companies have recently curtailed or postponed substantial investments in the UK, totaling nearly £2 billion this year. These actions are partially linked to pressures from the United States, where there’s a growing push-led by former President Donald Trump-for drug prices to align with those in other countries.

The Voluntary Scheme and Rebate Disputes

Pharmaceutical companies are actively seeking to renegotiate the terms of the Voluntary Scheme for Branded Medicines Pricing, Access and Growth (VPAG). Created to manage costs for the National Health Service (NHS), the scheme has faced criticism as rebate demands on pharmaceutical firms have risen sharply-reaching almost 25% this year-due to unexpected increases in NHS spending on branded medications.

“We would like to get rid of the clawback scheme … which charges us for our own success,” Ricks stated, highlighting the industry’s frustration with the current rebate system. Pharmaceutical executives view the scheme as a penalty for developing and marketing successful drugs.

Recent Investment Withdrawals

This year has witnessed a series of significant investment pullbacks. MSD-known as Merck in the US-canceled a £1 billion research center in london. Shortly after, astrazeneca announced a pause on a £200 million expansion of its Cambridge research facilities. bristol Myers Squibb has also threatened to withhold a new schizophrenia medication from the UK market.

These developments, coupled with prior project cancellations by AstraZeneca and Eli Lilly, represent a total of over £1.8 billion in withdrawn or paused investments as 2022. A total of thirteen major projects or company decisions have negatively impacted the UK’s pharmaceutical landscape over the past three years.

Company	Investment Impact	Date
MSD	£1 Billion Research Center Canceled	September 2025
AstraZeneca	£200 Million Expansion Paused	September 2025
Eli Lilly	£279 Million Investment Shelved	September 2025
Bristol Myers Squibb	New schizophrenia drug withheld	September 2025

US Pressure and Global Pricing Dynamics

Ricks also touched upon the influence of US political pressure, specifically Donald Trump’s push for lower drug prices. he suggested potential repercussions, including legal challenges from the Department of Justice or restrictions on drug approvals, if pharmaceutical companies do not commit to lowering prices in the US. Remarkably, he noted instances of patients traveling from France to the UK to purchase Mounjaro, a weight-loss drug produced by eli lilly, due to price discrepancies.

In a separate move, Eli Lilly recently announced a $6.5 billion investment in a manufacturing facility in Houston, Texas, although Ricks maintained the timing was not directly tied to Trump’s September 29th deadline for commitments on US drug pricing.

Understanding Pharmaceutical Pricing Models

Pharmaceutical pricing is a complex issue influenced by research and development costs, market exclusivity, regulatory approvals, and healthcare system structures. Different countries employ diverse strategies to manage drug costs,ranging from price controls to negotiation and value-based pricing. The UK’s system, which relies on a combination of negotiation and rebates, has been designed to balance affordability with innovation. Though, critics argue that it may unintentionally disincentivize investment in new drug development.

Did you No? The average cost to develop and bring a new drug to market is estimated to be over $2.6 billion, according to a 2023 report by the Pharmaceutical Research and Manufacturers of America (PhRMA).

Pro Tip: Stay informed about pharmaceutical pricing debates and their potential impact on access to medications by following reputable news sources and industry organizations.

Frequently Asked Questions About UK Drug Pricing

• What is the VPAG scheme? the Voluntary Scheme for Branded Medicines Pricing, Access and Growth is a framework that aims to control drug costs for the NHS in exchange for pharmaceutical companies’ commitment to supply medicines to the UK.
• Why are pharmaceutical companies withdrawing investment from the UK? Companies cite the UK’s strict pricing regulations, rising rebate demands, and political pressure from the US as reasons for reducing investment.
• What impact will these investment withdrawals have on patients? Reduced investment could lead to delays in the availability of new medicines and limit access to innovative treatments.
• How does UK drug pricing compare to other countries? The UK generally has lower drug prices than the US but might potentially be lower than some other European countries.
• What is Donald Trump’s role in this situation? Trump is pushing for US drug prices to be lowered to levels comparable to those in other countries, creating pressure on pharmaceutical companies.
• What is a ‘clawback’ scheme in pharmaceutical pricing? A clawback scheme is a mechanism where pharmaceutical companies are required to repay a portion of their revenue to the government or healthcare system if drug spending exceeds a certain threshold.
• Will the price of Mounjaro increase in the UK? Eli Lilly has already raised the price of Mounjaro in the UK for private buyers, and further price increases are possible if the current pricing environment doesn’t change.

What are your thoughts on the UK’s pharmaceutical pricing policies? Do you believe they strike the right balance between affordability and innovation?

Share your opinions in the comments below and help us continue the conversation.

What are the key differences in Mounjaro’s pricing between the UK, germany, and France?

The Rising Cost of Pharmaceuticals in the UK

The United Kingdom has recently been identified as the most expensive country in Europe for prescription drug prices. This concerning trend impacts access to vital medications for UK residents, especially those managing chronic conditions like type 2 diabetes. Recent statements from Eli Lilly, the manufacturer of Mounjaro (tirzepatide), a highly effective medication for type 2 diabetes and weight management, have shed light on the factors contributing to this disparity. Understanding thes dynamics is crucial for patients, healthcare professionals, and policymakers alike. This article delves into the specifics of drug pricing in the UK, the role of Mounjaro’s cost, and potential solutions.

Mounjaro Pricing: A Case Study in UK drug Costs

Mounjaro, a GLP-1 receptor agonist, has demonstrated critically important efficacy in improving glycemic control and promoting weight loss. However, its price in the UK is substantially higher than in comparable European nations.

* UK Price: Approximately £199 per month for a typical dose.

* Germany Price: Roughly £130 per month.

* france Price: Around £150 per month.

This price difference isn’t solely attributable to the drug itself. Several factors contribute to the higher cost of pharmaceuticals in the UK.

Factors Driving Up Drug Prices in the UK

Several interconnected elements contribute to the UK’s position as Europe’s most expensive market for medications.

1. The Voluntary Scheme for Pricing and Access (VPAS)

the VPAS agreement between the Department of Health and Social Care and the pharmaceutical industry plays a significant role. While intended to control overall spending, critics argue it can led to higher launch prices for new drugs. The scheme operates on a payment-by-results basis, where companies pay back a percentage of their sales if overall NHS spending exceeds an agreed limit.

2.NICE (National Institute for Health and Care Excellence) Guidelines

NICE assesses the cost-effectiveness of new drugs before thay are routinely available on the NHS. Delays in NICE approval, or restrictive guidelines limiting access to certain patient groups, can contribute to higher overall costs as option, perhaps more expensive, treatments are used.

3. Limited Generic Competition

While the UK has a robust generic drug market, the availability of generics for newer, innovative medications like Mounjaro is limited due to patent protection. this lack of competition allows manufacturers to maintain higher prices for longer periods.

4. Exchange Rate Fluctuations & Import Costs

Currency exchange rates and import costs can also influence drug prices, particularly for medications manufactured outside the UK. While not the primary driver, these factors can contribute to price variations. The current RPI rate forecast for 2025 is 4.1%, indicating continued inflationary pressure on costs [https://www.statista.com/statistics/374890/rpi-rate-forecast-uk/].

Impact on Patients and the NHS

The high cost of drugs like Mounjaro has significant consequences:

* Reduced Patient Access: Affordability issues limit access to potentially life-changing medications for many patients.

* Increased NHS Burden: Higher drug prices strain the NHS budget, potentially diverting funds from other essential healthcare services.

* health Inequalities: Disparities in access to medication exacerbate existing health inequalities, particularly for vulnerable populations.

* Pressure on Healthcare Professionals: Doctors face tough decisions when prescribing medications,balancing clinical need with cost considerations.

Alternatives and Cost-Saving Strategies

While the situation is complex, several strategies can help mitigate the impact of high drug prices.

* Negotiating Power: Strengthening the NHS’s negotiating power with pharmaceutical companies is crucial.

* Value-Based Pricing: implementing value-based pricing models, where prices are linked to the clinical benefits of a drug, could ensure fairer pricing.

* Promoting Generic and Biosimilar Use: encouraging the use of generic and biosimilar medications whenever appropriate can considerably reduce costs.

* early Access Schemes: Streamlining early access schemes for innovative drugs can provide patients with timely access while allowing for real-world data collection to inform future pricing decisions.

* Patient Support Programs: Pharmaceutical companies could expand patient support programs to help offset the cost of medications for those in need.

The Future of Drug Pricing in the UK

Addressing the issue of high drug prices in the UK requires a multi-faceted approach involving government, industry, and healthcare professionals. Openness in pricing, robust negotiation strategies, and a commitment to equitable access are essential to ensure that UK patients can benefit from the latest medical advancements without facing financial hardship. The ongoing debate surrounding Mounjaro’s cost serves as a stark reminder of the urgent need for reform in the UK pharmaceutical market.