The Australian federal health minister, Mark Butler, said the government is closely watching a big change in global medicine pricing after a new US-UK deal. This deal will make the UK pay 25% more for new US medicines. Experts warn this could set a worrying example. Under the deal, the UK will spend double its GDP share on buying new therapies from the US. UK experts fear the NHS will pay more for new drugs, leaving less for staff and existing treatments. The US hopes other countries will follow this model. When asked if Australia might pay more too, Butler said the Pharmaceutical Benefits Scheme (PBS) has "delivered extraordinary things for the Australian people for more than 80 years now," providing access "to the world's best medicines at affordable PBS prices". He assured, "we will never compromise those two important elements of the PBS." Butler added they are talking with the US government and global pharmaceutical companies to fully understand this "dynamic shift in the global pharmaceutical market." He said, "We’re one of 193 other countries engaging with the Americans about this." Medicines Australia, the industry's voice, said the deal highlights the urgent need for government reforms to the Health Technology Assessment (HTA), which guides decisions on medicine availability under PBS. A 2024 HTA review proposed 50 reform ideas to speed up patient access to new medicines. When asked if drug companies might push for more expensive drugs under this US-UK deal, Medicines Australia said their focus is to assist government reforms ensuring patients get innovative medicines. However, health experts warn this deal signals a move away from cost-effectiveness in medicine approval. Prof Libby Roughead said paying 25% more is "not really a loosening of cost-effectiveness thresholds … it's really just throwing it out." She added it’s early to know the full impact on Australia but said global effects are "inevitable." Dr Barbara Mintzes sees the deal as a global concern, saying it "sets a very problematic precedent" by mixing trade policy with public health. She said the UK NHS’s underfunding will likely worsen and fears similar pressure could hit other countries. She hopes Australia rejects any deals pushing up drug prices through trade tactics.