Eli Lilly brands the UK worst in Europe for drug prices
Ed Milner | Last update: 24th September 2025
The boss of pharmaceutical giant Eli Lilly has branded the UK the “worst country in Europe” for drug prices, and it’s all because of how the NHS negotiates costs. With Mounjaro prices soaring, SlimrChat explains what’s going on, and what it means for the future of weight loss drugs in the UK
Why Eli Lilly is angry about UK drug prices
David Ricks, CEO of Eli Lilly, caused headlines this week when he said the UK is the worst country in Europe for drug prices.
His comments follow the Mounjaro price hikes in the UK from September 1, a move that triggered panic buying and temporary supply freezes.
Ricks claimed that the UK’s system underpays for new and innovative drugs and suggested that Lilly and other pharma companies may reconsider investment in the UK market as a result.
📖 Read the full Reuters report
What is VPAG and why does it affect prices?
At the heart of this row is something called VPAG, the Voluntary Scheme for Branded Medicines Pricing, Access and Growth.
In simple terms, it’s a deal between the UK government and drug manufacturers. It allows the NHS to cap the total amount it spends on branded medicines each year, by demanding rebates if spending exceeds a certain level.
In 2024, that rebate rate hit 26.5%, meaning companies had to pay back more than a quarter of their revenue from branded drugs.
For companies like Eli Lilly, that makes it less profitable to sell drugs like Mounjaro in the UK. This was especially the case when users from other countries in Europe, where Mounjaro was more expensive, were travelling here to stock up at cheaper prices.
Some in the industry now say this model encourages companies to raise prices to compensate, which ultimately hurts access for patients.
Mounjaro price hike and what it means for users
SlimrChat has been following the Mounjaro price rise story closely. In short:
- Mounjaro was priced far cheaper in the UK than in most other countries
- This led to huge demand, even from overseas buyers
- Eli Lilly froze wholesale deliveries before the price hike on September 1
- Pharmacies are now adjusting prices, with many starter doses still advertised at lower costs but don’t be fooled, it’s the higher doses that make up most of people’s treatment
- Slimrchat calculates that the average annual cost of Mounjaro in the UK is £3,684, and over 75% of patient costs will be on the higher 12.5 mg or 15 mg doses
Read our latest breakdown of the UK Mounjaro price situation
SlimrChat’s view
We believe everyone deserves access to life-changing weight loss treatments, but the commercial politics of pricing often leave patients caught in the middle.
If pharma companies feel they’re not making enough in the UK, they raise prices. If the NHS feels it’s paying too much, it restricts access. It’s a tug of war, and right now, patients are feeling the strain.
But we’re here to help cut through the noise. Our advice?
- Stay informed: prices will fluctuate, but panic buying won’t help
- Check your options: private prescriptions, NHS access, and discounts all differ
- Be wary of short-term offers: starter pens may look cheap, but prices are rising fast
And most of all, don’t lose sight of your goal. Weight loss is a long-term journey and we’re with you for the whole ride. We are monitoring and sharing pricing across 72 online pharmacies in the UK to keep you informed.