Lilly EVP: VPAG Deadline Probably Postponed Another Two Weeks

For the Financial Times (FT) Global Pharma & Biotech Summit in London 2025, pharmaphorum is providing coverage courtesy of NAVLIN Daily, a pricing and market access insights report from EVERSANA (pharmaphorum's parent company). You can see the original post, along with more Market Access news, at NAVLIN Daily.

NAVLIN Brief

Speaking at the Financial Times’ (FT) Global Pharma and Biotech Summit in London, Patrik Jonsson, Executive Vice President and President, Lilly International, told the crowd, "My understanding is that the [Voluntary Scheme for Branded Medicines Pricing (VPAG)] deadline has probably been postponed for another two weeks, so until the end of November at the earliest.”
The deadline is scheduled for this coming Friday, November 14. There has been no public announcement that the VPAG has been delayed by another two weeks, so Jonsson’s remark is just speculation until verified
Companies that notify their departure before the new deadline will not be able to reverse their decision, and companies exiting VPAG will instead move onto the statutory scheme for branded medicines. The adjustments have been introduced to give companies additional time to weigh their options amid what the Association of the British Pharmaceutical Industry (ABPI) described as “ongoing global uncertainty.”

The Details

LONDON, United Kingdom – The deadline was initially the end of September. This was then extended to October 31, and subsequently, at the end of October, to November 14, 2025. The ABPI stressed at the time that while a similar extension was granted in 2024, this year’s adjustment is unrelated to that process and will not affect deadlines in future years of VPAG.

Once hailed as a global life sciences leader, the UK is now facing a wave of disinvestment; AstraZeneca (AZ), a British pharma giant, announced plans to pause a planned £200 million investment in the UK, shortly after MSD announced it will also halt research operations in London. Earlier this year, AZ also withdrew its £450 million expansion plan in Speke after failure to secure government support. GSK, another British company, revealed that it will invest $30 billion in research and development and supply chain infrastructure in the U.S. over the next five years.

The recent withdrawals and suspended projects echo mounting concerns about stagnation, coinciding with an ABPI report showing the UK losing ground in R&D, clinical trials, and foreign direct investment; Industry leaders and government officials agree that urgent action is needed to restore confidence and secure the UK’s future as an innovation hub.

Global policy shifts are compounding the issues the UK faces, as tariff threats and the Trump administration’s Most Favored Nation (MFN) loom, drawing investment from the UK to the U.S.

VPAG Standoff

In August, the pharmaceutical industry and the UK government failed to reach an agreement on changes to the 2024 VPAG.

At the time, Wes Streeting gave the ABPI a “private ultimatum” to either accept the government’s offer or conclude without an agreement, the latter of which was confirmed.

The review was tasked with finding a mutually agreed-upon way to address soaring VPAG payment rates. These rates now require pharmaceutical companies to make record payments of up to a quarter to a third (23.5%-35.6%) of their revenue from sales of branded medicines to the NHS.

Despite apparent “good faith and best efforts on both sides,” industry and government were not able to reach an agreed way forward that would meaningfully deliver on:

The UK government’s ambition for the life science sector and wider economic growth
Industry's ambition to ensure the latest medical breakthroughs and treatments can reach all the NHS patients who can benefit from them
The commitments set out in the UK-US Economic Prosperity Deal

Approaching Budget

Just yesterday, the ABPI used its pre-Budget submission to urge the government to take urgent steps to reverse the decline in investment. The group specifically identified high payment rates under the VPAG as a key deterrent to investment.

The UK’s 22.9% rate on newer medicines is more than three times the EU4 average. Combined with what the ABPI calls an outdated NICE valuation framework, these factors have led to fewer medicine launches and early terminations of UK product evaluations.

As such, the ABPI is urging the Treasury to work with the DHSC to design a sustainable pricing model that aligns with global competitiveness.