Friday, August 3, 2012

Drug Pricing in UK beyond 2014 - Joint DH/ABPI statement

With  the current Pharmaceutical Price Regulation Scheme (the 2009 PPRS) in the UK coming to an end in December 2013, Department of Health (DH) and the Association of the British Pharmaceutical Industry (ABPI) are contemplating on moving on to new arrangements that should incorporate a broader assessment of value of a medicine, known as value based pricing, for new medicines (new active substances), in conjunction with a successor scheme to the 2009 PPRS.
ABPI and DH aims to achieve a negotiated agreement for the new arrangements, including value based pricing. The negotiations are expected to  begin later this year and these will cover both value based pricing and the successor scheme to the 2009 PPRS

Underlying aims for the successor scheme to the 2009 PPRS
The successor scheme will cover the vast majority of branded prescription medicines already on the market before 2014. The scope is expected to be, broadly, medicines already licensed in the UK or the EU on 31st December 2013. The Government and ABPI’s intention is for this scheme to operate under a similar but not identical framework to earlier PPRS agreements.  As in all previous negotiations it will be important that the scheme is affordable and sustainable and responsive to evolving science and the changing needs of the NHS


Objectives for the proposals for value based pricing
The Government and the ABPI believe it is vitally important that there is a continuing supply of innovative treatments that benefit NHS patients. Continuous research and development and competitive efficiency should be the keys to any company’s success in a research-based industry. The ABPI welcomes the Government’s perspective that value based pricing alongside a renewed PPRS should support this goal.
The Government’s objectives for value based pricing are to:
  1. Improve outcomes for patients through better access to effective medicines;
  2. Stimulate innovation and the development of high value treatments;
  3. improve the process for assessing new medicines, ensuring transparent predictable and timely decision-making;
  4. include a wide assessment, alongside clinical effectiveness, of the range of factors through which medicines deliver benefits for patients and society;
  5. ensure value for money and best use of NHS resources.
The new agreement must therefore be stable and sustainable over the longer term, so that industry is able to plan and priorities research in areas which can deliver the greatest potential benefits to patients and society.
There is a considerable degree of commonality between these objectives, and the objectives set out in previous agreements. In the 2009 PPRS these are:
  1. deliver value for money;
  2. encourage innovation;
  3. promote access and uptake for new medicines;
  4. provide stability, sustainability and predictability.
Value based pricing will be introduced in a planned and progressive way. It will focus primarily on new medicines (new active substances) placed on the market from 1 January 2014. There is the possibility that a small number of existing medicines might