BDO LLP (BDO) has been appointed by the Association of the British Pharmaceutical Industry (ABPI) to act as the independent third party as required by the new Pharmaceutical Price Regulation Scheme (PPRS), which was agreed by the ABPI and the Government last November.
In accordance with the 2014 PPRS agreement, member companies with relevant net sales of £5 million or above must submit all quarterly and annual sales reports for the PPRS payment mechanism to the Department of Health and the independent third party.
BDO LLP will play an important role in monitoring the overall rate of growth of branded medicines by member companies relative to the allowed growth rate under the terms of the agreement. On a quarterly basis BDO LLP will provide the ABPI and the Department of Health with aggregate sales figures which will enable the calculation of payments to be made by scheme members throughout the five year agreement.
The first year payments have been fixed at 3.74% of companies’ relevant net sales, based on a medicines bill forecast agreed by the Department of Health and ABPI. In subsequent years the payments will be calculated based on actual growth in sales.
Under the new five year voluntary PPRS, the pharmaceutical industry has agreed to keep NHS expenditure on branded medicines flat for two years, with industry underwriting any further expenditure by the NHS within agreed boundaries. The ABPI continues to work with the Department of Health and NHS England to address the poor usage of innovative medicines in the UK and ensure that the scheme delivers better access to medicines for patients.
134 companies, representing 93% of the UK branded pharmaceutical industry joined the PPRS scheme on January 1 2014, 63 of these companies have sales under £5m, while 71 have sales over £5 million.
About the ABPIThe 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.
To learn more about BDO LLP click here.
Media enquiriesABPI Press OfficeTelephone: +44 (0) 20 7747 1410 or +44 (0) 20 7747 1441Mobile: +44 (0) 7850 312064 or +44 (0) 7808 641811Email: [email protected]