UK must reform drug pricing to become life sciences superpower, says GSK boss | GSK

GSK’s outgoing chief executive, Emma Walmsley, has said the UK will struggle to become a “life sciences superpower” unless it overhauls its drug pricing.

As ministers prepare proposals to increase the amount the NHS spends on new medicines by up to 25%, Walmsley said he was “hopeful and ambitious” that the dispute with the pharmaceutical industry could be resolved.

The government’s drug pricing announcement could come by the end of this week, according to the Academy of Medical Sciences.

Walmsley, who will hand over the top job to Luke Miels, currently GSK’s chief commercial officer, at the end of the year, said: “What everyone is putting their energy into and hopefully figuring out is how do we ensure this country creates the right trading environment.

“Without this, it will be very difficult to become a leading superpower in life sciences, which is what we want. … and we will not secure something else we all want: patient access to innovation.”

A possible deal between industry and government has been linked to negotiations with the Donald Trump administration over drug pricing after the US president pressured companies to lower their prices (historically much higher than elsewhere) and invest in the US or face trade tariffs.

Walmsley said the NHS spent less than 10% of its budget on medicines, a figure that was lower than in the past. His remarks came a day after science minister Patrick Vallance said “some price rise is inevitable”.

He told MPs on the science committee: “There will probably be some price rise for brand new, innovative drugs.”

The price rise will require additional funding for the NHS at a time when Chancellor Rachel Reeves faces tough decisions to balance the books and Labor is likely to breach election promises not to raise any of the big three taxes of VAT, income tax and national insurance.

“We have argued that if there is an increase in the price of innovative medicines, this will impose a cost burden and this will need to be covered,” Lord Vallance said.

The NHS Confederation and NHS Providers, which represents trusts and other healthcare organisations, said this week that covering redundancies and strikes, as well as paying more for medicines, was not included in the budget and extra money from the Chancellor would be needed.

As GSK invests $30 billion in US manufacturing and research, Walmsley reaffirmed the company’s support for the UK’s life sciences strategy and its commitment to Britain. This contrasts with other pharmaceutical groups that have canceled or paused investments in the UK, including MSD, known as Merck in the US, and British rival AstraZeneca.

GSK raised its 2025 sales and profit forecasts, driven by double-digit growth in respiratory, inflammation and immunology, oncology and HIV treatments.

GSK’s shares rose almost 6%, making it one of the biggest risers on the FTSE 100.

The company reported pre-tax profits of £2.5bn in the third quarter. This figure was £64 million the previous year; This reflected a $2.2bn (about £1.7bn) settlement in US lawsuits over claims that the drug Zantac caused cancer. GSK denies claims that the drug causes cancer.

Vaccine sales rose 2% to £2.7bn in the quarter to September 30, driven largely by sales outside the US. GSK reported a 15% decline in sales of its shingles vaccine Shingrix in the United States.

Vaccination rates in the United States have slowed since anti-vaxxer Robert Kennedy Jr. became health secretary. He cut research funding and fired the head of the Centers for Disease Control and Prevention.

“We continue to be very careful about the environment in the United States,” Walmsley said.