Value-based pricing

​The Government has proposed that the way branded medicines are paid for in the UK be changed by moving to a system of 'Value-Based Pricing' (VBP). In March 2011 the ABPI responded to the Government consultation on VBP.

Key recommendations from the ABPI

In order to ensure that VBP delivers benefits for patients, there should be an agreement between the pharmaceutical industry, the NHS and the Government to deliver unhindered access to patients and fully reward innovative companies. To achieve this we recommend that:

  • All barriers to access and uptake of medicines are identified and removed within the NHS once a value based price has been agreed. This would be in the mutual interests of patients, Government and the industry;
  • The current definition of "improvement and innovation" is broadened to recognise the value of longer-term incremental innovation, to the long-term benefit of patients;
  • A well-planned process of co-creation between Government and the industry is used to reach a voluntary agreement embracing VBP for new medicines and a scheme for existing ones;
  • The NHS Commissioning Board helps develop the objectives and pricing proposals which relate to medicines access and uptake, involving the devolved nations;
  • An early dialogue is established with the devolved nations to agree the optimum way forward in the best interests of all NHS patients, avoiding duplicative decision-making or delays in access to medicines;
  • The way the cost-effectiveness threshold is set and monitored over time is agreed between the industry and Government;
  • The processes for undertaking VBP should be as simple and efficient as possible, with minimal bureaucracy; and
  • Further and extensive work is carried out on a possible VBP negotiation framework during which outstanding concerns are addressed.  

Further information

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