• Press Office

    Posted in category News Release by Press Office on 06/03/2014

    New pricing deal swings into action this month with industry making first payments

The new pricing deal, agreed by the Association of the British Pharmaceutical Industry (ABPI) and the Government, will be seen in action for the first time this month as companies prepare to make their first quarterly payments to the NHS following the end of the first quarter sales.

​134 companies, representing 93% of the UK, branded industry joined the voluntary Pharmaceutical Price Regulation Scheme (PPRS)¹, which was agreed in November last year following the most complex pricing negotiations ever experienced. 

At the time of the deal being reached, the ABPI called for the deal to go hand-in-hand with action by the Government and the NHS, asking for them to respond positively to the unique opportunity to demonstrate their active commitment to improving patients’ access to the latest medicines.

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 first year payments - including the one following the end of March - have been fixed at 3.74% of companies’ net sales, which is the mid-point of both Department of Health and ABPI medicines bill forecast. In subsequent years, any payments will be corrected based on actual growth.

ABPI Chief Executive, Stephen Whitehead said:

“The fact that 93% of pharmaceutical companies in the UK have signed this voluntary deal is proof that this is fundamentally the best deal we could achieve in very tough times. This commitment from industry also recognises that this deal provides a game-changing opportunity to improve the UK environment and address the long history of low patient usage of innovative medicines in the UK, which has been getting progressively worse over the life of the last scheme.  

The ABPI continues to work with the Department of Health and NHS England to address the poor usage in the UK and ensure that the scheme delivers better access to innovative medicines for patients.”


¹This is an increase from the previous voluntary PPPRS scheme, which represented  88% of the UK branded industry.  

Media enquiries

ABPI Press Office  

Tel: +44 (0) 20 7747 1410 or +44 (0) 20 7747 1441

Mobile: +44 (0) 7850 312064 or +44 (0) 7808 641811 Email: pressoffice@abpi.org.uk  

Notes to editors  

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.

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