BIA update – 13 April 2026

Back from our Easter break, we’re hitting the ground running with an update on the publication of agreed text underpinning the UK-US pharmaceuticals agreement.  Also excited about the recent changes to the EIS, VCT and EMI schemes – secured after extensive BIA campaigning – which we expect will significantly increase investment and asset limits, enabling more innovative life science companies to scale. 

BioSolutions UK is just one week away now – it’s going to be a mind-blowing mix of innovators, corporates, investors and policy-makers – driving industrial transformation with engineering biology.

 

Jane Wall
Managing Director, BIA

Updated UK–US pharmaceuticals agreement

We welcome the publication of the agreed text underpinning the UK-US pharmaceuticals agreement, which builds on the announcements first made last year and confirms strong forward movement in improving the UK’s commercial environment for biotech and pharma.

As we said when the deal was initially announced, we are encouraged by the positive wording towards improving the operating environment for innovative medicines developers and the policy changes shaping how value and cost‑effectiveness are assessed in the NHS. BIA has consistently argued for a supportive commercial environment for large and small life sciences companies, recognising the wide socioeconomic benefits of medicines, and the direction of travel remains aligned with that ambition.

What’s new?

For the first time, we now have sight of the agreed text, which provides some further clarity for members and confirms several commitments that are central to the long‑term health of the UK life sciences ecosystem.

In particular, the text sets out:

• A roadmap for increasing UK investment in medicines, including commitments to grow spending on medicines as a proportion of GDP and of the overall NHS budget. Delivery against this commitment will be critical to improving patient access and to making the UK a more attractive place for companies to scale, stay and invest.
• NICE threshold and methods reforms, which have now been enacted. As of 1 April 2026, the standard cost‑effectiveness thresholds used in Single Technology Appraisals (STA) have increased to £25,000-£35,000 per quality‑adjusted life year (QALY). NICE estimates that this change could enable approval of an additional three to five medicines or indications per year.
• An industry-government working group to consult on the design of a new scheme to replace the Voluntary Scheme for Branded Medicines Pricing and Access (VPAG), which BIA is part of. The agreement also confirms that the repayment rate under the current scheme will be 15% in 2026 and remain at or below that level for the duration of the scheme, providing greater predictability and sustainability for companies operating in the UK market.
• 0% tariffs on pharmaceuticals and medical devices exported to the US, making the UK the only country to have secured this position. If delivered, this would be a significant positive for UK‑based manufacturing and reinforces the UK’s status as a leading destination for life sciences investment.
• That the US will also protect UK patient access to new medicines in its implementation of ‘most favoured nation’ (MFN) policy, and that the two countries will work together to ensure there’s no delay to the launch of new medicines. However, the details of how it will do this are still not clear.

Our role and next steps

As set out in my previous blog, BIA is part of the oversight group and process for the VPAG review (called a working group in the agreement text), ensuring our members – especially UK SMEs – have a voice and influence. We will also continue to engage closely with Government and system partners to understand the extent and practical implications of the commitments set out in the text, particularly around MFN mitigations.

It is essential that commitments translate into delivery. In particular, ensuring that increasing spend in medicines delivers increases UK patient access to innovative therapies and ensuring the UK remains an attractive location for companies to start and grow – as well as attracting international investment.

Exciting tax incentives announcement

Whilst many of us were enjoying a bank holiday, last Monday was a big day for both the Enterprise Management Incentives (EMI) and the Enterprise Investment Schemes (EIS)/Venture Capital Trusts (VCTs).

Following extensive BIA campaigning, the schemes are undergoing change – with significant increases to investment and asset limits – allowing them to support more companies as they scale and grow beyond the previous fundraising limits.

These changes are expected to support around £100 million of additional investment a year, and will make the schemes far more suitable, and far more useful, for UK life science companies.

We will continue to work closely with HM Treasury to make sure that any changes to the tax system benefit the life sciences, and so with this in mind, it is likely that the schemes most relevant to you will be receiving additional changes in the not too distant future. Watch this space! Check out Lewis Miles’ blog for more information.

British Business Bank unlocks UK pension funds

The efforts of (many years of) BIA campaigning are yielding results, with the British Growth Partnership Fund I having achieved a first close at £200 million, unlocking commitments from UK pension funds Aegon UK, Cushon Master Trust, M&G and the British Business Bank. The close demonstrates progress in driving venture capital allocations from Mansion House Accord signatories.

This is the first time that the Bank has raised external capital from multiple investors and has secured commitments from three large UK DC schemes and Master Trusts. This is also the first time that Aegon UK and Cushon have invested in UK venture capital, bringing two of the UK’s pension funds into the asset class. The Bank has also partnered with Mobius, whose unit-linked structure has facilitated the Cushon investment.

Spreading the word on pension reform

Check out Martin Turner’s recent interview for Pharmaceutical Technology recently on navigating commercial gaps to supercharge the UK life sciences sector, which argued that for the UK to fully harness its potential in the global life sciences market, commercial, funding and systemic challenges must be tackled.  He discusses the need for a stronger emphasis on enacting pension fund policies like the Mansion House Accord, focusing on incentivising pension providers to invest in high-growth British businesses such as biotech or pharma companies.

Also worth a listen is our outgoing Chair Dan Mahony’s appearance on The BioCentury Show, talking up the necessity of pension fund reform and an informative explanation of the two decades of ultra‑risk‑averse regulation that pushed pension schemes out of equities.  Dan argues that, if successful, unlocking even a modest share of pension capital could transform the UK’s ability to fund later‑stage biotech growth, reduce reliance on US investors and better capture the economic value of the country’s world‑class science.

New OLS Chair

We welcome the news that Kenan Poleo has been appointed Director at Office for Life Sciences and look forward to working with him in his new role. Kenan was previously appointed the Consul General and Trade Commissioner for Eastern Europe and Central Asia.

Prior to being appointed to Istanbul, Kenan Poleo was Her Majesty’s Deputy Trade Commissioner for Europe, based in Berlin, Germany. His previous roles include Head of Global at Innovate UK, and Regional Director for the UK Science and Innovation Network for Europe, Russia and Turkey at the FCDO, also based at the British Embassy in Berlin.

Biosolutions lab bench to front bench

And if you can’t get enough of seeing our policy work, the latest edition of lab bench to front bench has been published today. In this issue, we highlight our impact across these agendas and take a deeper dive into our work shaping the policy environment for biosolutions SMEs.

More broadly in the past month, BIA has engaged with Government and Parliament on the legislative and funding mechanics that underpin the Life Sciences Sector Plan, including the commercial environment, pensions reform and data access. Ongoing uncertainty on R&D grant funding and AI and copyright adds to a fluid policy landscape in which BIA is representing our members’ interests.

Life Sciences Job Plan

And finally please do join us on 12 May for Community Connects: Exploring the Life Sciences Job Plan. Join the BIA Skills Community for an in-person event in London to discuss the forthcoming Life Sciences Jobs Plan and what it means for the sector. Bringing together SMEs, industry leaders and policy representatives, the session will explore current challenges in the skills and talent pipeline and provide an opportunity for members to share insights on how the UK life sciences workforce can be strengthened.