Eli Lilly has stated that it will only resume investment in the UK if the government agrees to regular increases in National Health Service (NHS) drug prices and phases out a rebate scheme requiring pharmaceutical companies to return substantial sums to the government, reported the Financial Times.

The US-based pharmaceutical company is currently engaged in discussions with UK ministers, seeking changes to the current system for pricing medicines purchased by the NHS.

The talks include proposals that would connect payment for certain drugs, such as anti-obesity medications, to measurable patient outcomes, like a patient's return to work following treatment.

According to Eli Lilly's international business president Patrik Jonsson, the company regards these negotiations as critical for future UK investment decisions.

Last year, Eli Lilly halted its investment activities in Britain due to what it described as unacceptably low prices paid by the NHS for medicines.

Jonsson said: “What we would need to see is actually those goals turning into really a well-defined action plan with interventions and timelines.”

The outcome of ongoing discussions will determine whether the company resumes its investments.

Jonsson stated that previous commitments from the UK government, including an increase in the threshold for NHS cost-effectiveness assessments, may not be sufficient to meet targets set under existing agreements. He called for further measures to ensure increased spending on new medicines.

In 2025, UK Prime Minister Keir Starmer raised the cost-effectiveness threshold from £20,000–£30,000 per quality-adjusted life year (QALY) to £25,000–£35,000 following negotiations with the US government over pharmaceutical tariffs.

Ministers are set to move forward with this policy despite concerns about value for money raised by civil servants.

An official announcement is expected soon, although there is still a possibility of adjustments by US authorities.