UK government, pharma industry still far away from life sciences plan agreement

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LONDON (Reuters) -The British government and the pharmaceutical industry remain far apart in a dispute over drug pricing that has delayed publication of a long-pending plan for the UK life sciences sector.

WHY IT’S IMPORTANT

The review is intended to outline how the UK can cut red tape and boost a sector the government identifies as one of eight strategic areas for driving economic growth.

The disagreement comes amid simmering frustration in the pharma industry. The Times reported on Tuesday that AstraZeneca, the UK stock market’s most valuable company, is considering shifting its stock market listing to the United States.

KEY QUOTE

“Talks continue but we’re not yet close to a landing zone for a deal,” one pharma industry source said. “We’re not close” to a deal, a second industry source said.

CONTEXT

The “life sciences review” was due to published on Monday. The Financial Times reported on Wednesday that the delay stemmed from the impasse over drug pricing.

WHAT’S NEXT

The first source said a deal could still be reached this summer if the government signals a path towards more fairly valuing medicines. Companies sharply criticise policies like VPAG (Voluntary Scheme for Branded Medicines Pricing, Access and Growth), which requires them to return between a quarter and a third of revenues from UK drug revenues to the National Health Service.

THE RESPONSE

Talks are ongoing and confidential, said a spokesperson for the government’s health ministry, adding that economic growth was the government’s top priority.

(Reporting by Maggie Fick and Alistair Smout in London. Editing by Mark Potter)