As the dust settles following the milestone agreement between the US and UK governments, our Chief Commercial Officer looks at what this means for our customers.
What exactly is the agreement?
- A 0% tariff on UK pharmaceutical exports to the US for at least three years, this includes medicines, pharmaceutical ingredients and medical technology
- A 25% increase in the price the UK pays for innovative medicines, the first increase in 20 years
The agreement strengthens the resilience of the interconnected UK-US pharmaceutical supply chain, which is critical for the movement of medicines, APIs, raw materials and technology. At this point in time, the UK is the only country with guaranteed tariff-free access to the US market for these products. This reduces reliance solely on other markets and has the potential to positively impact our customer’s projects, providing increased options across geographic regions.
What could this mean for our customers?
Immediate cost efficiency: Sourcing from our UK facilities now carries the same tariff-free advantage as domestic US manufacturing, but with our competitive UK operating cost base, and consequently more efficient capacity when you need it.
Faster speed to clinic: In the UK, AI tools and other digital platforms have halved UK clinical trial approval times from 91 days to 41 days. If you are looking to expand clinical data generation, our UK sites are now potentially an even faster launchpad for US-bound material.
Supply chain ‘safe harbor’: With fluctuating trade dynamics globally, this agreement establishes a privileged trade corridor between the UK and US, offering you a layer of geopolitical insulation and supply security.
Solely western based: Sterling is a western based organisation with sites in the US, UK and EU. Your IP and data are protected with certifications such as Cyber Essentials Plus and ISO 27001.
How will Sterling leverage the changes?
Utilising global resources more effectively: This provides us with the continued opportunity to integrate projects across our network to use the most appropriate experts, equipment and capacity available to meet the requirements of customers.
Use our collective power through our Extended Bench™ model: Global integration of our internal networks provides scientific resources when and where needed, eliminating tech transfers and accelerating timelines.
Develop stable and secure supply chain strategies with customers: Developing cross border strategies that enable Sterling to add value earlier in a project, spanning early development, scale-up, validated launch volume and on-going commercial manufacture (including intermediates), will aid customer’s geographic and supply chain resilience strategies in the western market.
Continue to support industry innovation: We will continue to invest in the latest technologies and in improved capacity to aid the development of next generation medicines. This includes working with peers in industry on groundbreaking innovations and research to develop the global market.
Why is Sterling well placed to do this?
Sterling is a specialist Partnership Development and Manufacturing Organization (PDMO®) (traditionally a CDMO) with a global footprint (UK, US, and Europe) and more than 50 years of experience to inform projects.
We are perfectly positioned to leverage these changes and support global drug substance producers with the following services:
| Sterling service | Strategic benefit to Sterling customers |
|---|---|
| API development and manufacturing | Full-lifecycle support from route scouting to commercial cGMP manufacturing across our integrated global network spanning the UK, EU and the US. This allows our customers to establish a secure, tariff-exempt supply corridor utilizing our UK manufacturing sites. |
| High Potency APIs (HPAPIs) | Specialized containment capabilities and expertise for highly potent compounds in both our UK and US, supporting the manufacturing of cutting edge, innovative therapies. |
| Payload Linkers and ADCs (Antibody Drug Conjugates) | Leveraging our highly potent capabilities and demonstrated regulatory compliance to develop and manufacture ADCs and other bioconjugations. In-house linker/ payload manufacturing reduces risk and protects IP for enhanced supply chain security. |
| Controlled Substances | Licenses, security infrastructure, and cGMP expertise to safely handle and scale up controlled substance molecules, ensuring supply chain integrity for complex materials. |
| Chemistry, Manufacturing, and Controls (CMC) Services | Regulatory and technical guidance throughout the product lifecycle, including support for NDA/IND submissions, essential to accelerate new drug launches and secure rapid regulatory approval. |
| Peptides | Services that span development through to commercial manufacture underpin our capabilities to combine peptide synthesis with conjugation alongside tailored synthesis, advanced purification, and analytics for complex sequences, resulting in speed to market. |
In summary
By creating a tariff-free trade corridor for pharmaceuticals, this deal strengthens the resilience of the supply chain and opens new opportunities for innovation and investment on both sides of the Atlantic.
For patients, this means faster access to breakthrough treatments. For our industry, it means leveraging the combined talent and capabilities of two leading markets to accelerate progress in medicines development.
At Sterling we are excited about what this means for our partners and the broader healthcare ecosystem.
Together, we can turn this policy milestone into real-world impact.
