WASHINGTON

The US and the UK agreed in principle on pharmaceutical drug pricing, authorities announced Monday.

In a joint statement, the Office of the US Trade Representative, the Department of Commerce and the Department of Health and Human Services said President Donald Trump and Prime Minister Keir Starmer agreed under the US-UK Economic Prosperity Deal to “address long-standing imbalances in US–UK pharmaceutical trade” by improving “overall environment” for companies operating in the UK.

US Trade Representative Ambassador Greer said in a statement that American patients had “been forced to subsidize prescription drugs and biologics in other developed countries by paying a significant premium,” adding that the agreement “will help drive investment and innovation in both countries.”

Under the deal, the UK will increase the net price it pays for new medicines by 25% and reduce repayment rates under its voluntary pricing scheme to 15% in 2026.

Commerce Secretary Howard Lutnick called the agreement “a major win for American workers and our innovation economy.”