NHS Patients Risk Missing Out on New Drugs as Novartis Warns of “Uncompetitive” UK Market

NHS patients could be denied access to innovative new treatments due to rising costs and outdated pricing methods, pharmaceutical giant Novartis has warned.

Talks between Health Secretary Wes Streeting and drug companies broke down last week over a pricing deal aimed at controlling NHS spending. Novartis said the UK is now “largely uninvestable” because of high rebate rates and outdated drug evaluation criteria.

💊 Under the current system, companies selling medicines to the NHS must pay rebates on sales above a set threshold. While a 15% rebate had been expected, the actual rate has surged to 23.5%, far higher than Germany’s 7%.

Novartis UK boss Johan Kahlstrom said this makes it harder to launch new drugs, warning that “patients are already losing access” to medicines available in other European countries.

The company said:

“Due to the declining competitiveness of the UK market, we have already been unable to launch several medicines for public reimbursement.”

Critics argue that the UK’s drug assessment model, run by the National Institute for Health and Care Excellence (NICE), is outdated. NICE measures cost-effectiveness using a “Qaly” (quality-adjusted life year), with a threshold of £20,000–£30,000 per Qaly — unchanged since 1999. Novartis argues this figure should now be closer to £50,000.

Streeting has insisted he will not let firms “rip off” taxpayers, claiming the government made an “unprecedented offer” to reduce payment rates and free up £1bn for new medicines over three years.

Industry body ABPI warned that without reform, the UK will continue to fall behind global leaders in medical research and innovation. Its chief executive Richard Torbett said:

“Without change, the UK will continue to fall down international league tables for research, investment, and patient access to medicines.”

The row comes after reports that US-based Gilead Sciences decided not to submit a new breast cancer drug to NICE, claiming the UK undervalues life-saving treatments.

With only 9% of NHS spending allocated to medicines, compared to 14% in France and 15% in Germany, pharma leaders warn that UK patients risk being left behind in the race for breakthrough treatments.