Value based pricing will be introduced into the UK from January 2014 and is expected to be one of the biggest reforms to the pricing of new medicines in the UK since the Pharmaceutical Price Regulation Scheme was set up more than 50 years ago.
The ABPI Cancer Drugs Fund / Value Based Pricing Working Group is working on the development of the ABPI response to the value based pricing consultation which has been issued by the Department of Health. This consultation, which closes on 17 March, represents the start of a process of co-creation between Government and industry which is expected to last for several years. The dialogue will need to consider not just value based pricing but also a voluntary agreement which will be needed to cover all existing medicines already on the market before 2014. Further research will need to be conducted throughout 2011 and 2012 to inform the development of value based pricing and a new voluntary agreement.
This group has also been following closely the operation of the Interim Cancer Drugs Fund as it has been rolled out and implemented across the regions in the NHS in England since October 2010. Feedback gathered was used in the development of the ABPI response to the Department of Health consultation on the full Cancer Drugs Fund which will come into operation from April 2011. We will be continuing to monitor the use of the Cancer Drugs Fund throughout 2011 and will report further findings in April 2011 and October 2011.
View our response to the Cancer Drugs Fund consultation News release: Cancer Drugs Fund – both an opportunity and a challenge