US and UK reach pharmaceutical pricing agreement

The United States and United Kingdom announced an agreement in principle on pharmaceutical pricing, according to the U.S. Trade Representative announcement on Monday. The deal requires the UK's National Health Service to increase the net price it pays for new medicines by 25%.

Under the agreement, the U.S. will exempt UK-origin pharmaceuticals, pharmaceutical ingredients, and medical technology from Section 232 tariffs. The U.S. also committed to refrain from targeting UK pharmaceutical pricing practices in future Section 301 investigations during President Trump's term.

The deal secured continued investment by UK pharmaceutical companies in the United States, according to USTR statements. U.S. Commerce Secretary indicated the agreement will strengthen supply chains and create jobs in the U.S.

USTR Katherine Greer stated the Trump administration is reviewing pharmaceutical pricing practices of other U.S. trading partners and hopes they will pursue similar negotiations. The USTR said the U.S. will work to ensure UK citizens have access to pharmaceutical breakthroughs.

You May Also Be Interested In

• Jefferies upgrades Five Below to Buy, sees path to TJX-like re-rating
• Murphy Oil Corp. (MUR) PT Lowered to $43 at KeyBanc
• Cisco (CSCO) PT Raised to $135 at KeyBanc