03 Dec 2013 Posted in News Release By Press Office
Under the new scheme, of which the Heads of Agreement were announced on November 6, the pharmaceutical industry has agreed to keep NHS expenditure on branded medicines flat for two years, with the industry underwriting any further expenditure by the NHS within agreed boundaries.
Today the Government has published details of the final scheme which will come into force on 1 January 2014.
Commenting on the publication ABPI Chief Executive, Stephen Whitehead said:
“With this five year agreement industry has agreed to play our part, in light of the financial challenges facing the NHS. It’s government’s role to create an environment that encourages industrial growth and therefore we are disappointed that the Government has chosen not to maintain a taper for companies with NHS sales between £5 and £25 million. We now need the Government and the NHS to respond positively to this unique opportunity to demonstrate their active commitment to improving patients’ access to the latest innovative medicines.
“These have been the most complex negotiations we have ever had with Government and it should not be underestimated how difficult this will be for the industry. The commercial environment in the UK has an impact on its attractiveness for research and development investment and it’s too early to say what impact this settlement will have on industry investment.”
The full Pharmaceutical Pricing Regulatory Scheme can be found here.
The ABPI represents innovative research-based biopharmaceutical companies, large, medium and small, leading an exciting new era of biosciences in the UK.
Our industry, a major contributor to the economy of the UK, brings life-saving and life-enhancing medicines to patients. Our members supply 90 per cent of all medicines used by the NHS, and are researching and developing over two-thirds of the current medicines pipeline, ensuring that the UK remains at the forefront of helping patients prevent and overcome diseases.
The ABPI is recognised by government as the industry body negotiating on behalf of the branded pharmaceutical industry, for statutory consultation requirements including the pricing scheme for medicines in the UK.