Bristol Myers Squibb (BMS) announced plans to launch its new schizophrenia drug, Cobenfy, in the United Kingdom next year, setting its price to match the U.S. list price of $22,500 annually, or about $1,850 per month. Cobenfy, a novel antipsychotic treatment, works by activating muscarinic receptors in the central nervous system rather than acting on dopamine pathways. Schizophrenia, which BMS estimates affects roughly one in 100 people in the UK, causes persistent delusions and hallucinations that significantly disrupt how patients perceive reality.
The company said it would file a fast-track marketing authorisation application with the UK regulator before year’s end. The announcement precedes expected approval next year and represents a rare case of a pharmaceutical company publicly committing to a UK price before regulatory clearance. This is also the first time BMS has priced a drug identically in the UK and U.S. simultaneously — a move that comes amid mounting debate over global drug pricing policies. The U.S. currently pays more for prescription drugs than almost any other country, often nearly three times as much as in other developed markets.
The pricing decision comes amid pressure from the U.S. government. In July, BMS was among 17 pharmaceutical companies that received letters from President Donald Trump demanding “binding commitments” to match or improve on the lowest drug prices in other developed nations. The companies were given until September 29 to respond. In August, Eli Lilly announced it would raise the UK list price of its weight-loss drug Mounjaro by up to 170% (though not affecting NHS use), demonstrating how pricing tensions are playing out globally — an issue also relevant for schizophrenia therapies seeking fair market access.
Adam Lenkowsky, BMS’s chief commercialization officer, said the company intends to work with the UK’s National Institute for Health and Care Excellence (NICE) and the NHS to ensure access to Cobenfy, but emphasized that BMS would reconsider if its value is not properly recognized. “If we need to, we are prepared to make the difficult decision to walk away if NICE cannot recognise the value of our medicine,” Lenkowsky said.
He added that the company supports the U.S. administration’s position on international drug pricing, stating, “We agree with the Trump administration that other countries need to pay their fair share.” He also urged the UK to “step up in recognising the value of truly innovative therapies,” particularly in mental health and schizophrenia treatment.
The UK government and pharmaceutical industry have recently clashed over a revenue clawback tax on medicine sales. The levy, designed to cap NHS drug spending growth, increased to nearly 23% this year — a level Lenkowsky described as “untenable.” Other companies have cited Britain’s business environment in halting or reducing investments: Merck (MSD) cancelled a planned £1 billion London research centre, and AstraZeneca paused a £200 million Cambridge investment citing competitiveness issues. BMS said it expects UK approval of Cobenfy next year, following its regulatory submission.
Looking ahead, BMS must navigate a challenging path to convert its pricing ambition into patient access. The company will need to make a compelling case to NICE about Cobenfy’s clinical benefits, safety profile, and cost-effectiveness relative to existing schizophrenia therapies. Given the drug’s novel mechanism targeting muscarinic receptors, BMS may emphasize its advantages in symptom domains unaddressed by current antipsychotics. If pricing negotiations stall, BMS could face a decision between accepting steep discounts or forgoing the UK launch.
Moreover, with the clawback tax and infrastructure constraints in the UK, BMS will likely collaborate with the government and advocacy groups to ensure the schizophrenia drug’s rollout is sustainable. This strategy will serve as a bellwether for how innovative psychiatric therapies are valued in markets dominated by rigorous health economics assessment.
