The ABPI and the Department of Health have today announced a payment of £209 million from industry to underwrite growth of the medicines bill for the second quarter of 2015 under the 2014 Pharmaceutical Price Regulation Scheme (PPRS).
Click here to read the announcement.
Industry has contributed a total of £416m in PPRS payments so far in 2015 to help support the use of branded medicines by the NHS. However, the growth rate of branded medicines in the scheme for the second quarter of 2015 was 2.41% - half the rate seen in 2014.
David Watson, Director of Pricing and Reimbursement for the ABPI said: "As an industry, we want to see patients getting access to the best high value medicines across all therapy areas. This Scheme provides the NHS with a unique opportunity to give patients in the UK greater access to new and innovative treatments at minimal cost.
"We are deeply concerned that the reduced growth rate shown in the second quarter suggests that patients in the UK are still losing out. Whilst industry is underwriting the medicines bill, patients are still not getting access to the right medicines at the right time. The UK already lags behind the rest of Europe in investing in medicines, based on the expenditure on pharmaceuticals per person*. Today's figures suggest that this could be worsening.
"This is bad news for patients – we urge the NHS to ensure the PPRS payments allow clinicians to prescribe the medicines that they believe are right for their patients."
During 2014 industry paid a total of £310 million to the Department of Health under the PPRS and it is anticipating payments totalling £800 million for 2015.
The Pharmaceutical Price Regulation Scheme (PPRS) is a voluntary agreement between the Department of Health (DH), on behalf of UK Government, and the Association of the British Pharmaceutical Industry (ABPI), on behalf of the entire UK pharmaceutical industry, regarding the supply of branded medicines to the National Health Service (NHS) across the four nations of the UK. The 2014 PPRS came into effect on 1 January 2014 and runs for five years.
The pharmaceutical industry has agreed to keep NHS expenditure on branded medicines flat for two years and under 2% growth for the following three years. Companies will make percentage payments based on any difference between allowed growth and actual growth in NHS expenditure on branded medicines, subject to the agreed exclusions.
134 companies, representing 93% of the UK, branded industry joined the voluntary PPRS, which was agreed in November 2013 following the most complex pricing negotiations ever experienced.
*Source: OECD Health Data 2012 – currency converted from EUR to GBP using exchange rate of 1 EUR = 0.81 GBP
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: