Each week we highlight five things affecting the life sciences industry. Here’s the latest.
UK–US deal links higher NHS drug spending to tariff stability
- The BBC reports that the UK agreed to raise its National Health Service spending limits and pricing threshold for new medicines in exchange for three years of zero tariffs on its pharmaceutical exports.
- Business and Trade Secretary Peter Kyle said that the deal should secure jobs and help ensure investment in the pharmaceutical sector.
NHS services to remain intact despite UK-U.S. pharma deal costs
- The UK government says NHS services will not be cut to fund the new zero-tariff pharmaceuticals deal with the U.S., reports The Independent.
- Under the agreement, the NHS will raise its spending threshold for new medicines by 25%, potentially allowing more high-cost treatments to be approved and the cost is forecast to rise to around £1 billion by March 2029.
UK clinical trial slowdown could threaten patient access and industry hopes
- Pharmaforum reports that recruitment into commercial clinical trials in the UK dropped by 25% for the period of September 2024 through August 2025 compared with the prior year, with just over 19,000 patients enrolled.
- The decline is blamed on slow study set-up times and UK sites setting significantly lower recruitment targets than those in other European countries.
CMS finalizes major payment rule shift for diabetes devices
- The Centers for Medicare & Medicaid Services will now bundle payment for certain continuous glucose monitors, insulin pumps and related diabetes supplies under its competitive bidding program, shifting from upfront purchase to a monthly rental model.
- Per MedTech Dive, implementation starts Jan. 1, 2026, with contracts awarded in 2027. While the change aims to reduce costs and make devices more updatable, industry groups warn it could pose risks to patient access and limit device choice.
Hospital groups sue to block 340B rebate pilot
- The American Hospital Association, a Maine hospital group and four safety-net health systems filed a lawsuit seeking a temporary restraining order to prevent the Health Resources and Services Administration’s new “rebate-model” pilot for the 340B Drug Pricing Program, arguing the rollout was too hasty and violates administrative rules.
- Plaintiffs warn the change will impose serious costs on hospitals, require significant administrative work and risks jeopardizing care for vulnerable patients, reports Fierce Healthcare.
For more insights in life sciences, check out RSM’s industry outlook.
