Eli Lilly Demands Regular NHS Price Rises, Outcome-Based Payments
Eli Lilly will only resume UK investment if the NHS agrees to regular drug price increases and ends its rebate scheme requiring substantial refunds. It also wants to tie payments for anti-obesity medications to patient outcomes, citing unmet targets under the current £25k–35k QALY cost-effectiveness threshold.
1. Pricing and Rebate Demands
Eli Lilly has told UK ministers it will only restart investment if the NHS agrees to annual increases in drug prices and phases out its rebate scheme that forces manufacturers to return significant funds.
2. Outcome-Based Payment Proposals
The company proposes linking payment for certain therapies—especially anti-obesity drugs—to measurable patient outcomes, such as a patient’s return to work, with clear intervention timelines.
3. Investment Halt and Threshold History
Lilly halted all UK investment in 2025 over low NHS pricing; last year the government raised the cost-effectiveness threshold from £20k–30k to £25k–35k per QALY, which Lilly says still falls short of its targets.
4. Next Steps and Investment Timeline
Ministers are expected to announce final policy adjustments soon, with Lilly’s decision to resume UK R&D and manufacturing contingent on a well-defined action plan and timelines.