The ABPI and the Department of Health have today announced a payment of £207 million from industry to underwrite growth of the medicines bill for the first quarter of 2015 under the 2014 Pharmaceutical Price Regulation Scheme (PPRS).
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The growth rate of branded medicines covered by the scheme for the last six months was 3.03% - lower than the original forecast rate of 3.52% and down on the 2014 versus 2013 calendar year growth rate of 5.2%.
Alison Clough, Acting CEO and Executive Director Commercial UK, for the ABPI said: “Today’s announcement once again demonstrates industry’s commitment to supporting the NHS in a time of austerity and reinforces the unique opportunity that the PPRS provides Government and the NHS to offer patients access to newer, innovative medicines at minimal additional cost.
“We are not yet seeing the growth in all types of new innovative medicines, which the PPRS was designed to achieve, nor are we yet seeing a fundamental change, breaking down the barriers that get in the way of this happening. However, industry is committed to working with Government and the NHS to accomplish this. In particular, our joint PPRS/Medicines Optimisation programme with the NHS and the Academic Health Science Networks (AHSNs) is spearheading work with local clinical, financial and operational leaders to harness the opportunity of the PPRS and accelerate the use of innovative, clinically and cost effective medicines, thereby improving outcomes for patients.
“During 2014 industry paid a total of £310 million to the Department of Health under the PPRS and it is anticipating payments in excess of £800 million for 2015. The Department has announced that the NHS has received £796 million of these expected payments in its budget for this financial year. The NHS needs to ensure that this money allows clinicians to prescribe the medicines that they believe are right for their patients without undue focus on cost. This is currently not happening."
Industry will underwrite any further expenditure by the NHS subject to specific exceptions set out in chapter 6 of the PPRS. 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.
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: