'Worst in Europe': Eli Lilly CEO slams UK drug prices, warns of fewer drugs

Eli Lilly CEO Dave Ricks slammed the UK's strict drug pricing rules, warning that the country risks losing new medicines and investment unless changes are made to its rebate scheme

Eli Lilly CEO Dave Ricks has described the UK as “probably the worst country in Europe” for drug pricing. His remarks add to the growing criticism from pharmaceutical companies over Britain’s tough pricing rules.

 

In an interview with the Financial Times, Ricks warned that the UK risked losing access to new medicines unless it raised drug prices and ended its controversial 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 said.

 

“That’s the UK’s choice, but we react to those choices,” Ricks added.   

 

Dispute over VPAG rebate scheme

 

Pharma companies have been pressuring the UK government to reopen talks on the Voluntary Scheme for Branded Medicines Pricing, Access and Growth (VPAG). The scheme, designed to control National Health Service (NHS) costs, has become contentious after rebates for branded drugs climbed to nearly 23 per cent this year.

 

Ricks criticised the system, saying Lilly “would like to get rid of the clawback scheme called VPAG... which charges us for our own success.”

 

Companies threaten to pull back

 

Several global drugmakers, including Lilly, Merck and AstraZeneca, have announced they may halt or reduce investments in the UK due to the pricing standoff. Bristol Myers Squibb has even warned it may not launch a new schizophrenia drug in the country, the news report said.

 

“They say, ‘well, why are you cancelling your investments?’ It is not an attractive environment,” Ricks said. Lilly has already paused part of a £279 million project aimed at supporting biotech startups.

 

UK price hike for weight-loss drug

 

In August, Lilly raised the private-market price of its weight-loss drug Mounjaro in the UK by up to 170 per cent. Ricks explained 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 came as Lilly unveiled plans for a $6.5 billion manufacturing facility in Houston, Texas. He said the move was not connected to the Biden administration’s September 29 deadline for companies to commit to lowering drug prices, though he admitted the outcome of negotiations remained uncertain, the news report said.

 

“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? Maybe. Is it the [Food and Drug Administration] will stop approving drugs? Maybe.”   

 

Trump’s push for lower US prices

 

Lilly previously cautioned in a regulatory filing that President Donald Trump’s push for lower drug costs could “significantly impact” its business. Shares in the company have already fallen 3 per cent this year.

 

Trump has long argued that US drug prices should match lower prices in other countries. The UK’s cost structure was even part of his “most-favoured nation” plan, which was never implemented.

 

On Monday, Trump again pressed his case, saying Americans pay far more for the same treatments: “I have a lot of friends. They are fat. 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 expands in India with weight-loss portfolio

 

Eli Lilly is also preparing to launch an oral version of its weight-loss drug, Orforglipron, in India. The pill is expected to follow the success of its injectable drug Mounjaro (tirzepatide), introduced earlier this year.

 

According to The Economic Times, regulatory filings for the once-daily pill are likely within three months, with approvals expected in the second half of 2026.

 

"We are preparing for regulatory submissions for chronic weight management and obesity by the end of this year,” said Patrik Jonsson, executive vice-president of Eli Lilly. “Approvals in many countries are likely in the second half of 2026.”

 

India will be among the first countries to receive submissions. For type 2 diabetes, applications are expected in early 2026, with approvals possibly by late 2026 or early 2027.

 

Mounjaro KwikPen debuts at ₹14,000

 

In August, Lilly rolled out its Mounjaro KwikPen in India at a starting price of ₹14,000 (about $160) for the 2.5 mg dose. The launch follows clearance from India’s drug regulator in June, coming just days after Novo Nordisk introduced its Wegovy pen. Both pens are designed for convenient, self-administered injections.

 

Lilly had already launched Mounjaro in vials earlier this year, with strong sales reported. Demand has been rising quickly, with July figures doubling from the previous month.