Importing US pharmaceuticals into the UK can be daunting. With complex regulations, pricing differences, and customs and shipping challenges, importing US pharmaceuticals into the UK can be a significant undertaking. However, there is enormous potential in selling US pharmaceuticals on the UK market.
The UK pharmaceutical market is one of the largest in the world, holding around a 2.3% share of the global pharmaceutical sector. And in 2021, UK consumers spent around £8 billion on pharmaceutical products. The UK market is characterised by a strong presence of both domestic and international pharmaceutical companies, with a focus on innovation and research.
However, the regulatory pathway for drugs in the US has some major differences from that in the UK, which makes getting regulatory approval to sell US drugs in the UK a challenge.
In the following sections, we’ll explore some key differences between the UK and US regulatory pathways and pricing for pharmaceuticals. We’ll also discuss the regulatory pathway for selling new drugs in the UK and some key challenges to consider when importing US Drugs to the UK.
While both the US Food and Drug Administration (FDA) and the UK Medicines and Healthcare products Regulatory Agency (MHRA) aim to ensure drug safety and efficacy, there are notable differences in their regulatory approaches.
The regulatory pathway in the US is often considered more lengthy and stringent, with a focus on extensive clinical trials. In contrast, the MHRA’s approach is generally more streamlined – potentially allowing them to accelerate approvals for some drugs.
The Medicines and Healthcare products Regulatory Agency (MHRA) is the organisation that oversees the regulation of pharmaceuticals in the UK. They use science and data to make informed decisions, enable medical innovation, and ensure that medicines and healthcare products in the UK are safe and effective. The MHRA also overlooks any US drugs that are imported into the UK.
The UK system places greater emphasis on post-market surveillance and real-world evidence. US companies looking to import US pharmaceuticals into the UK should note that FDA approval does not automatically translate to approval in the UK. The UK’s regulatory framework is also more closely aligned with European standards, which can affect labelling requirements and clinical trial designs.
Understanding these differences is crucial for US businesses planning to enter the UK pharmaceutical market.
Another key distinction between the UK and US pharmaceutical markets is the role of the government in drug pricing. The UK’s National Health Service (NHS) is the primary purchaser of pharmaceuticals in the UK, and the Pharmaceutical Price Regulation Scheme (PPRS) controls the prices of existing therapies and new drugs sold to the NHS. In the US, drug prices are largely determined by market forces.
The UK’s pricing scheme aims to ensure the NHS has access to innovative medicines at affordable prices, while also promoting a sustainable pharmaceutical industry in the UK. Therefore when selling medicinal products to the NHS, US businesses must remember that pricing for medicines is drugs is set by these organisations.
Now that we’ve explored some key differences between the US and UK regulatory bodies, let’s review the regulatory mechanism in the UK in more detail to provide a better understanding of the process for importing a new drug from the US to the UK.
MHRA is responsible for ensuring the safety, quality, and efficacy of medicines, medical devices, and blood components for transfusion. MHRA’s authority also extends to the licensing, manufacturing, and distribution of pharmaceuticals.
MHRA also conducts regular inspections of manufacturing facilities to ensure compliance with Good Manufacturing Practice (GMP) standards. It also grants marketing authorisations (MAs) for companies that want to place new drugs on the UK market.
A marketing authorisation is an approval needed to put new drugs on the market. An MA outlines the medical conditions, patient population, dosage the medicine is approved for, and conditions that apply to the holder of the marketing authorisation. Marketing authorisations also ensure that medicines meet strict standards of safety, quality, and efficacy.
To legally market and sell a medicinal product in the UK, a company must obtain an MA from the MHRA. To obtain an MA, companies must submit comprehensive data from clinical trials and other studies demonstrating the product’s compliance with these standards.
Any medicinal product sold on the UK market, including new drugs imported from the US, must have a valid UK marketing authorisation. This requirement applies regardless of whether a drug has received regulatory approval in the US by the Food and Drug Administration (FDA).
US companies applying for an MA must submit comprehensive documents containing detailed information about the product, including:
The MHRA then reviews the application to assess the product’s quality, safety, and efficacy. If the benefits of the medicine are deemed to outweigh its risks, the MHRA grants an MA, which allows the importer product to market and sell the US drug in the UK.
Not all companies must go through this approval process. For US companies looking to import pharmaceuticals to the UK, there are several other options for obtaining an MA.
A manufacturer’s license is required for any company that manufactures, assembles, or imports medicinal products into the UK. This license ensures that the manufacturing processes comply with Good Manufacturing Practice (GMP) standards.
Good Manufacturing Practice (GMP) is a set of standards that ensure the consistent production and quality control of pharmaceutical products. GMP covers all aspects of the manufacturing process, including raw materials, premises, equipment, training, and personal hygiene of staff. In the UK, the MHRA enforces GMP compliance through regular inspections of manufacturing facilities.
This requirement ensures that imported pharmaceuticals meet the same quality, safety, and efficacy standards as those manufactured domestically.
Failure to demonstrate GMP compliance can result in the rejection of imported products at the UK border, causing significant delays and financial losses for the importer.
While drug approvals for safety and efficacy are crucial, US businesses must also ensure their pharmaceutical products comply with UK labelling and packaging requirements.
When importing and selling pharmaceutical products in the UK, US businesses must ensure their product labelling complies with UK-specific regulations. The MHRA requires that the labels for all contain specific information, including:
Labels must also include the name and address of the marketing authorisation holder, and the batch number and expiry date of the product.
Pharmaceutical products sold in the UK must also include patient information leaflets (PILs). PILs provide essential information for patients, such as the product’s:
The content and format of PILs are regulated by the MHRA to ensure clarity and readability for patients, ensuring they have access to all essential information. US businesses must ensure that product labelling and PILs comply with UK-specific requirements to avoid delays or rejections at the border when importing into the UK.
Importing US pharmaceuticals to the UK presents several other challenges US companies should carefully consider:
Customs clearance: Navigating complex import procedures and potential delays at customs can be challenging. Ensuring all documentation is correct and complete is crucial to avoid costly holdups. clearBorder’s training services help US businesses navigate the complex procedures for importing US drugs into the US, ensuring a smooth process at the border and preventing fines.
Drug pricing: Adjusting to the UK’s pricing regulations and NHS negotiations can impact profitability. The UK’s value-based pricing system may result in lower prices compared to the US market.
Market access: Gaining acceptance from healthcare professionals and inclusion in NHS formularies is crucial for success. This often requires building relationships with key opinion leaders and demonstrating the cost-effectiveness of US medicines.
Consumer preferences: When selling US drugs on the UK market, businesses must be prepared to address potential scepticism towards US medications. UK patients may be less familiar with US brands, requiring targeted and expensive marketing campaigns.
Competition: Before importing pharmaceuticals into the UK, US businesses must understand they will be competing with established UK and European pharmaceutical companies that already have a strong market presence and brand recognition. Businesses should also consider whether their product fulfils an unmet medical need for UK consumers, or if there are existing therapies that would be hard to compete with.
Supply chain management: US businesses that want to ensure consistent supply despite geographical distance may need to establish UK-based distribution centres or partner with local logistics providers.
Pharmacovigilance: Businesses importing US drugs into the UK must establish systems for ongoing safety monitoring in compliance with UK standards, which may differ from US drug development requirements.
Navigating the complexities of importing pharmaceuticals into the UK can be challenging, especially for businesses new to international trade. However, hiring a trade consultant like clearBorder can provide numerous benefits.
Through training and consultation, clearBorder can guide US businesses through the importing regulatory landscape in the UK to help ensure compliance with UK drug standards.
Contact clearBorder today for expert guidance on importing products into the UK.