A new financial agreement announced today [21 December 2015], as part of the Pharmaceutical Price Regulation Scheme (PPRS), will see the pharmaceutical Industry pay around £550 million in 2016 to help pay for medicines for NHS patients.
The PPRS is a unique scheme where pharmaceutical companies agreed to contribute towards the cost of medicines, with the aim of making the latest treatments affordable for the NHS.
Today's announcement means that the payments are restructured, so that around £200million of the estimated payments for 2017 and 2018 will be brought forward to 2016 to help the Government deliver its NHS funding commitment to NHS Chief Executive, Simon Steven's, Five Year Forward View.
This comes on the same day that the Association of the British Pharmaceutical Industry announced the pharmaceutical industry's third payment in 2015 of £202million to the Department of Health under the PPRS, bringing 2015's total contribution to £619million. The Industry has paid around £1billion back to Government since the inception of PPRS in 2014 and over the five years of the agreement we expect to pay a total of £3billion.
Acting CEO at the ABPI, Alison Clough said: "By agreeing to bring forward these payments, our industry is showing its commitment to patients so they get the medicines they need and also to improving the flow of new and innovative medicines into the NHS. We know that access to new medicines is patchy across the UK and that there are still barriers in the system. The PPRS is unique; combined with the UK having some of the lowest costs for medicines in Europe it provides us with a real opportunity to use new medicines to help improve health outcomes. We hope today's agreement will help us to make faster progress."
The industry continues to call for more focus on modernising the medicines used in the NHS, to accelerate the use of those medicines which are recognised as offering the highest standards of clinical and cost-effectiveness and which have been recommended for use by the National Institute for Health and Care Excellence (Nice).
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. We represent companies supplying around 90% of all medicines used by the NHS, and are researching and developing the majority 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 Office Email: email@example.com Telephone during work hours (9am to 5pm Monday to Friday): +44 (0) 20 7747 7147 or +44 (0) 20 7747 1441 Telephone out of hours (5pm to 9am and weekends): +44 (0) 20 7747 1445