The Association of the British Pharmaceutical Industry (ABPI) has been notified by the Government of its intention to open negotiations on the Pharmaceutical Price Regulation Scheme (PPRS).


The pharmaceutical industry recognises the Government’s need to gain best value for money from all aspects of NHS services, including medicines. The NHS already benefits from one of the most cost-effective medicines policies in Europe, with high levels of generics prescribed, prices of branded medicines in line with other major European countries, and schemes being introduced within the NHS to maximise the use of generics. This means that the UK medicines bill is low both in terms of cost per head and as a share of NHS expenditure.

The ABPI welcomes the assurance from the Government that any new agreement will recognise the contribution of the pharmaceutical industry to the UK economy. The ABPI believes that a stable, voluntary agreement is crucial to retain the industry’s major R&D investments – the UK’s largest.

These points are recognised in the Government’s interim response to the Office of Fair Trading market study on the PPRS, published today, which also stresses that the Government is “committed to increasing the uptake of new cost-effective medicines in the NHS”. The response emphasises that the PPRS has helped to ensure a stable pricing regime over the years and “to sustain a strong pharmaceutical and bioscience industry delivering valuable new medicines that have contributed significantly to improvements in the health of the UK population”.

“The PPRS has brought many benefits to the NHS and to the UK as a whole, and these can be summed up in the Government’s own words as providing stability, sustainability and predictability. It is essential that these remain integral to the PPRS as it evolves,” said Nigel Brooksby, President of the ABPI.

For further information, please contact: ABPI Press Office 020 7747 1410


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