The Association of the British Pharmaceutical Industry (ABPI) and the Department of Health have today announced the first payment of £74 million by industry to underwrite the growth in the branded medicines bill under the 2014 Pharmaceutical Price Regulation Scheme (PPRS).
Click here to see the first quarterly net sales and payment information
The payment accounts for the first three months of 2014. The first year payments have been agreed at 3.74% of companies’ net sales, which is based on a joint forecast of growth in the branded medicines bill. In subsequent years the payments will be adjusted based on actual growth rates.
Under the new five year voluntary PPRS, the pharmaceutical industry has recognised the financial challenges facing the NHS and we will help keep NHS expenditure on branded medicines in the scheme flat for two years and keep the growth rate below 2% for a further three years. The industry will underwrite any further expenditure by the NHS with the exception of the agreed exclusions1.
Stephen Whitehead, ABPI Chief Executive, said:
“This first payment is proof that the PPRS is working as it was designed to, and is a strong foundation to achieve better access to innovative medicines for patients across the country. The ABPI is currently in discussion with both the Department of Health and NHS England on how best to ensure that the scheme delivers better access to innovative medicines for patients and we are committed to working with the NHS to achieve this.”
1The agreed exclusions are exceptional central procurements (such as national stockpiles for the security of the nation or pandemic preparation), procurements of centrally supplied vaccines, parallel imports and companies with sales of less than £5 million in the previous year.
134 companies, representing 93% of the UK branded industry joined the voluntary PPRS, which was agreed in November last year following the most complex pricing negotiations ever experienced.
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.
ABPI Press OfficeTelephone: +44 (0) 20 7747 1410 or +44 (0) 20 7747 1441Mobile: +44 (0) 7850 312064 or +44 (0) 7808 641811Email: [email protected]