By Sally Pipes
Friday, 03 October 2025 05:14 PM EDT
Drug maker Bristol Myers Squibb has announced plans to sell its new schizophrenia drug Cobenfy at the same price in both the United Kingdom and the United States. The company warned that if the British government refuses to accept this pricing, it may withdraw from the market entirely.
The decision highlights a growing tension over pharmaceutical pricing disparities. For years, Britain and other nations have imposed price controls on medicines, leading to underpayment for pharmaceutical innovations. As a result, American patients have shouldered a disproportionate share of the global research and development costs.
According to a recent RAND Corporation analysis, U.S. drug prices are 278% higher than in 33 other developed countries, with British prices 270% lower than those in the United States. Foreign governments often cap drug prices through mechanisms like the UK’s National Institute for Health and Care Excellence (NICE), which evaluates medications based on a metric called quality-adjusted life year (QALY). NICE typically values a QALY at £20,000 to £30,000 ($27,000 to $40,000), a threshold that many argue undervalues human life.
Such policies have kept British drug prices artificially low but have also limited access to cutting-edge therapies. As of October 2022, British patients had access to just 59% of the 460 medicines launched globally between 2012 and 2021, compared to 85% in the United States. Many of these drugs were developed due to revenue generated from the U.S. market, where higher prices fund innovation.
The Trump administration has pushed for foreign countries to pay fairer prices for medicines, arguing that the current system disadvantages American patients while stifling global medical progress. However, challenges remain, as some nations continue to use tactics like intellectual property threats or restrictive market access to further suppress costs.
The situation underscores the need for a shift in how drug pricing is approached globally, ensuring that innovation is adequately funded while balancing affordability for all patients.
