Pharma industry representatives in the UK have welcomed a new trade deal agreement with Japan which will allow pharmaceutical companies to continue trading largely as they do now after January 1 next year.

The government has secured a free trade agreement with Japan, marking the UK’s first major deal as an independent trading nation, which it claims will increase trade with the country by around £15.2 billion.

According to the government, the deal is “tailored to the UK economy and secures additional benefits beyond the EU-Japan trade deal, giving UK companies exporting to Japan a competitive advantage in a number of areas”.

Critically, as part of the deal, the UK and Japan will incorporate the functions of the existing EU/Japan Mutual Recognition Agreement (MRA) for medicines, so that both sides can continue to accept each other’s drug safety testing and inspections before export.

The ABPI has welcomed the move, as having an MRA in place “avoids unnecessary duplication, disruption to supply chains or delays to patient access to medicine”.
Claire Machin, head of International Policy at the ABPI, said the agreement “provides much-needed continuity to businesses in our sector as they focus on preparations for the end of the Transition Period.

“These early deals are an opportunity for the Government to set out a future trade agenda which supports innovative British industries, encourages R&D investment and strengthens the UK’s role as a leader in life sciences. We look forward to working with them to achieve that in future agreements.”

Last year the UK exported £23.3 billion worth of pharmaceutical goods, 3.3% of which went to Japan, “making pharmaceutical products the third-highest good in value terms exported from the UK to Japan,” the Association noted.

The British In Vitro Diagnostics Association (BIVDA) has called for more support for the UK in vitro diagnostics (IVD) industry, ahead of the government’s upcoming comprehensive spending review.

Addressing Chancellor Rishi Sunak, BIVDA has put forward both short- and long-term funding decisions in a bid to help strengthen the IVD industry, which it says is key to the UK’s COVID-19 recovery strategy.

Beyond the COVID-19 pandemic, BIVDA added that the IVD industry will be of the utmost importance for the NHS to clear the growing backlog of undiagnosed conditions, with many of these patients having had to wait since March for a diagnosis.

BIVDA has suggested focusing on three key areas – innovation, manufacturing and people – to support and strengthen the IVD industry in the short- and long-term future.

In addition, it highlighted the need for a large talent pool in the UK, calling for investment in higher education, including the development of a specific diagnostic apprenticeship.

“A well supported IVD industry will be critical in getting the country back on its feet as we continue to recover from the pandemic,” said Doris-Ann Williams, chief executive of BIVDA. “Only with a concerted effort and government support can we ensure that the UK life sciences sector can compete on a global level, bringing better health outcomes, advanced manufacturing capability and highly skilled jobs to our country.”