On Thursday, the UK′s pharmaceutical trade organization urged the government to abandon its proposals to increase the repayment rates for drugmakers to prevent potential setbacks for the industry.

Drug companies participating in the UK voluntary program agreement, which lowers the cost of branded medications for patients, are obligated to give the government a portion of their drug sales. The revenue clawback rate will be increased by the Department of Health and Social Care from 24.5 percent to 27.5%.

The nation′s continued efforts to boost rates are likely to send the "worst conceivable signal" to boardrooms and investors worldwide, according to the Association of the British Pharmaceutical Industry (ABPI).

The world′s two largest pharmaceutical companies, AbbVie and Eli Lilly, left the UK′s voluntary drug pricing arrangement in January after the payback rates increased to 26.5%.

The ABPI has requested that the current prices remain in place until the end of 2023 to buy time for negotiations.

The industry body claimed that government regulations could further suppress long-term investments in the UK′s life science sector.

(Source: https://health.economictimes.indiatimes.com/news/pharma/uk-pharma-body-urges-govt-to-scrap-hike-in-repayment-rate-for-drugmakers/97543704)