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Eli Lilly seeks higher NHS drug prices, rebate overhaul to restart UK investment, FT reports

Published by Global Banking & Finance Review

Posted on March 30, 2026

2 min read

· Last updated: April 1, 2026

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Eli Lilly seeks higher NHS drug prices, rebate overhaul to restart UK investment, FT reports
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March 30 (Reuters) - Eli Lilly wants the UK to regularly raise NHS drug prices and phase out a multi-billion-pound rebate scheme if it is to resume investment, its international businesses president

Eli Lilly Calls for Higher NHS Drug Prices and Rebate Changes to Boost UK Investment

Eli Lilly's Stance on NHS Drug Pricing and Investment in the UK

Company's Position and Ongoing Negotiations

March 30 (Reuters) - Eli Lilly wants the UK to regularly raise NHS drug prices and phase out a multi-billion-pound rebate scheme if it is to resume investment, its international businesses president Patrik Jonsson told the Financial Times.

In an interview published on Monday, Jonsson said he was in talks with UK ministers and was "optimistic" about reaching an agreement by the summer for the country to pay more for its medicines.

Innovative Pricing Plans Under Discussion

The discussions also cover "innovative" pricing plans that would link payments for anti-obesity drugs to whether patients become well-enough to return to work, Jonsson said.

Concerns Over Current Medicine Prices

Medicine prices in the UK had been "far too low for far too long, and even with the current threshold, we are not back to where we started more than 20 years ago," he added.

Government Response and Policy Commitments

Access to Innovative Treatments

"Everyone deserves access to the best and most innovative treatments, and our changes to medicine pricing will make sure thousands of NHS patients gain faster access to new treatments," the British Department of Health and Social Care said.

Pharmaceutical Agreement and NICE Threshold Changes

"We remain fully committed to delivering the UK-US Pharmaceutical Agreement, including the changes to the NICE cost-effectiveness threshold."

Recent Price Adjustments and Market Comparison

Lilly's Price Increase for Mounjaro

Lilly raised the UK list price of its weight-loss treatment Mounjaro by up to 170% in August 2025, saying it had initially set prices "significantly below" those in its three other major European markets to prevent delays in NHS access.

Reporting Credits

(Reporting by Chandni Shah in Bengaluru; Editing by Sumana Nandy)

Key Takeaways

  • Eli Lilly’s international president Patrik Jonsson says the UK must phase out its multi‑billion‑pound VPAS rebate and raise medicine prices to renew investment talks (apnews.com)
  • Pricing talks include outcome‑based models—for example, paying for weight‑loss drugs only if patients improve enough to return to work (apnews.com)
  • This follows Lilly’s 170% NHS‑protected UK price hike for Mounjaro in Sept 2025, aligning private prices with wider Europe while maintaining NHS access (euronews.com)

References

Frequently Asked Questions

Why is Eli Lilly asking for higher NHS drug prices in the UK?
Eli Lilly believes UK medicine prices have been too low and is seeking regular price increases to support ongoing investment in the country.
What changes does Eli Lilly want in the NHS rebate scheme?
Eli Lilly wants to phase out the multi-billion-pound rebate scheme, arguing it impacts their willingness to invest in the UK.
What innovative pricing plans are being discussed?
Talks include pricing anti-obesity drugs based on patient health outcomes, such as returning to work.
How much did Eli Lilly raise the price of its drug Mounjaro?
Eli Lilly increased the UK list price of Mounjaro by up to 170% in August 2025, citing previously low prices.
Who is involved in discussions with Eli Lilly regarding drug prices?
Patrik Jonsson of Eli Lilly is in talks with UK ministers about reaching an agreement on new pricing by summer.

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