Eli Lilly CEO Criticizes UK’s “Worst in Europe” Drug Pricing, Warns of Medicine Shortages
Eli Lilly CEO Dave Ricks has stated that the UK is “probably the worst country in Europe” for drug pricing. His remarks contribute to the increasing criticism directed at pharmaceutical companies regarding Britain’s stringent pricing regulations. In an interview, Ricks cautioned that the UK faced the possibility of losing access to new medicines unless it increased drug prices and abolished its contentious rebate system. “Unless that changes, I don’t think they will see many new medicines and I don’t think they will see much investment,” he stated. “That’s the UK’s choice, but we react to those choices,” Ricks added.
Pharmaceutical companies have been urging the UK government to resume discussions regarding the Voluntary Scheme for Branded Medicines Pricing. The initiative, aimed at managing expenses within the National Health Service, has sparked controversy as rebates for branded medications surged to almost 23 percent this year. Several global drugmakers, including Lilly, Merck, and AstraZeneca, have indicated that they may halt or reduce investments in the UK due to the ongoing pricing standoff. Bristol Myers Squibb has cautioned that it may refrain from launching a new schizophrenia drug in the country, according to the reports. “They say, ‘well, why are you cancelling your investments?’ “It is not an attractive environment,” Ricks said. Lilly has already paused a portion of a £279 million initiative designed to support biotech startups. In August, Lilly increased the private-market price of its weight-loss drug Mounjaro in the UK by as much as 170 per cent. Ricks elaborated on the decision: “What we had seen is people taking trains from Paris to buy UK Mounjaro. That doesn’t make a tonne of sense for us.”
Ricks’ criticism of UK pricing coincided with Lilly’s announcement of a $6.5 billion manufacturing facility in Houston, Texas. He stated that the decision was unrelated to the Biden administration’s September 29 deadline for companies to pledge to reduce drug prices, although he acknowledged that the results of the negotiations were still uncertain, according to the reports. “It is hard to quantify” the impact if no deal is reached, Ricks said, adding: “Is it the Justice Department is going to come litigate us?” Perhaps. Will the [Food and Drug Administration] cease the approval of drugs? “Maybe.” Lilly had previously warned in a regulatory filing that President Donald Trump’s initiative for reduced drug costs could “significantly impact” its business. Shares in the company have already declined by 3 percent this year. Trump has consistently maintained that US drug prices ought to align with the lower prices found in other countries. The cost structure of the UK was included in his “most-favoured nation” plan, which ultimately was not put into action. On Monday, Trump reiterated his argument, stating that Americans incur significantly higher costs for identical treatments: “I have a lot of friends.” They are overweight. They pay $1,300, $1,200, and they go to London and they pay $88… “We are subsidising the rest of the world.”
Eli Lilly is set to introduce an oral formulation of its weight-loss medication. The pill is anticipated to build on the success of its injectable counterpart, Mounjaro, which was launched earlier this year. The reports that indicates regulatory filings for the once-daily pill are anticipated within three months, with approvals projected for the latter half of 2026. “We are preparing for regulatory submissions for chronic weight management and obesity by the end of this year,” stated Patrik Jonsson. “Approvals in many countries are likely in the second half of 2026.” India is set to be one of the initial countries to receive submissions. For type 2 diabetes, applications are anticipated in early 2026, with approvals potentially occurring by late 2026 or early 2027. In August, Lilly introduced its Mounjaro KwikPen in India, with a starting price of ₹14,000 (approximately $160) for the 2.5 mg dose. The launch comes after receiving clearance from India’s drug regulator in June, occurring just days after Novo Nordisk unveiled its Wegovy pen. Both pens are crafted for ease of use, allowing for self-administered injections. Lilly had previously introduced Mounjaro in vials earlier this year, reporting robust sales. Demand has surged rapidly, with July figures doubling compared to the previous month.
