‘Problematic precedent’: expert says Australia could be next as UK agrees to pay 25% more for new US medicines

The Guardian - World NewsCenter-LeftEN 1 min read 100% complete by Melissa DaveyDecember 2, 2025 at 09:26 AM

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A new agreement will see the UK pay 25% more for new US medicines, doubling the percentage of its GDP allocated to these innovative therapies. US officials hope other countries will follow suit, but health policy experts are concerned this sets a "problematic precedent" that moves away from value-for-money assessments. UK experts worry the National Health Service will have less funding for staff and existing treatments as a result. The Australian federal health minister, Mark Butler, stated the government is monitoring this "dynamic shift" in the global pharmaceutical market. Experts suggest Australia could be next to face pressure to increase spending on US medicines.

Key Entities & Roles

Key Player Opposition Context

United States ×250% Australia 60% UK ×270% Mark Butler 80%

Keywords

drug pricing 90% us medicines 80% pharmaceutical market 70% problematic precedent 70% value-for-money assessment 60% health policy 60% global pharmaceutical market 60% national health service 50% innovative therapies 50%