The Association of the British Pharmaceutical Industry (ABPI) has published details of payment to the Department of Health (DH) under the five-year Pharmaceutical Price Regulation Scheme (PPRS).
The figures show that the companies who voluntarily signed up to the scheme have paid £153million in the second quarter of 2016, bringing total payments to £1.451Billion. However, the overall medicines spend covered by the scheme is almost flat. Data for the last nine months shows a 0.75% growth in Measured Spend on branded medicines.
A number of factors have contributed to the low growth, including discounts being given directly to the NHS, and the effect of parallel imports to the UK.
ABPI's Director of Pricing and PPRS, David Watson, said: "Today's figures show that the medicines spend under the agreed PPRS is lower than either side anticipated when the scheme began, one reason is that companies increasingly give discounts directly to the NHS. However the scheme still remains important overall in helping ensure the costs of medicines used in the UK stays within an agreed level. We are reviewing all of the figures on an ongoing basis with the Department of Health."
The PPRS is a voluntary deal between the industry and the Department of Health which helps the NHS budget for new medicines. If the NHS spends over an agreed limit, the industry pays back the difference. Since the scheme started in 2014, the total figure paid back by companies has reached £1.451Billion.
The deal was agreed primarily to help stimulate growth in the use of new medicines for NHS patients, help the NHS budget effectively and give patients better access to innovative treatments.
ABPI Press Office Email: firstname.lastname@example.org to 5pm Monday to Friday: +44 (0) 20 7747 7147 or +44 (0) 20 7747 14415pm to 9am and weekends: +44 (0) 20 7747 1445
About the ABPI
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 per cent 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.