In the run-up to the review of the Pharmaceutical Price Regulation Scheme in 2004, the Department of Health launched a consultation exercise. The PPRS caps the profits that companies can make on sales of branded prescription medicines to the NHS, while encouraging investment and research and development in the UK.

In its submission to the DoH consultation, the ABPI said that innovation is the key to the pharmaceutical industry’s success and benefits both the health and wealth of the country. It remains vital to ensure that the UK continues to foster an environment that encourages investment and results in major benefits for patients, the NHS and the economy.

In real terms, the prices of medicines are now 15 per cent lower than ten years ago. The PPRS limits the profits that pharmaceutical companies can make, but offers no guaranteed profit level. The ABPI’s submission illustrated how pharmaceutical costs remain a smaller proportion of health costs in the UK than in most other European countries and predicted that over the next three years, patent expiries on 20 per cent of brand medicines worth more than £1.5 billion a year will lead to significant savings in NHS medicine costs, as generic copies enter the market.

As a result, the rate of growth in the NHS medicines bill is falling, especially for branded medicines. and is predicted to fall over the next six years. The submission also showed how greater prescribing of modern medicines has been shown to be beneficial in helping the government to meet its key targets for improving health in areas such as coronary heart disease, where mortality rates over the past ten years have fallen by more than 40 per cent.

Access to research skills and knowledge
The heavy investment made by the pharmaceutical industry in the UK reflects the strength of the science base in terms of skill and knowledge. The ABPI has responded to a series of consultation in the higher education sector and engaged with senior Government and higher education officials to secure the supply of scientists, engineers and physicians upon which the future of healthcare depends.

A survey of ABPI member companies highlighted the extent of collaborative research between universities and UK-based R&D facilities. It indicated that companies are directly involved with nearly 700 doctoral studentships and are engaged in over 400 collaborative projects: this excludes clinical or contract research. Companies currently invest over £70 million a year in collaborative research and training in UK universities.

There have also been a number of Government consultations on schools education, especially for the 14 to 19 years age range. The ABPI has worked hard to ensure that pupils not only have the option to focus on science, but are encouraged to do so. Being able to develop a sound science base before entering university is important if the supply of high quality research and technical graduates is to be sustained.

Creating a safe environment for research
The ABPI has continued to work on spreading best practice in the appropriate use of animals in biomedical research and presenting the significant effort and investment by companies in implementing the 3Rs – reduction, refinement and replacement.

While the Coalition for Medical Progress, of which the ABPI is a member, continues to work actively to explain to the public the realities and context of the use of animals in biomedical research, a small number of extremists continue to harass companies and individuals. The ABPI lobbied successfully for amendments to existing legislation, and these were incorporated into changes in the Anti-Social Behaviour Bill, but further legislation is required. The ABPI has drafted specific legislation to counter intimidatory and threatening activity against legitimate and regulated research involving the use of animals.

But legislation by itself is not sufficient; effective policing is essential. Consequently, strong links have been made with law enforcement agencies. Through strengthening enforcement of the law, by facilitating civil action by companies and by introducing specific additional legislation, the UK can ensure it has a secure environment for biomedical research.

Manufacturing activities
A major industry concern has been to secure the support of the Government for incentives to encourage investment in the UK pharmaceutical manufacturing base. The UK share of manufacturing has declined significantly since 1997, and manufacturing jobs in the UK pharmaceutical sector are forecast to fall by 16 per cent from 2002 – 2005. The ABPI has suggested a number of ways in which the UK could achieve a more competitive place in the market compared with countries which offer significant fiscal and other incentives to investors.

The Association has also engaged with bodies such as the Environment Agency and the Health & Safety Executive to seek progress in these areas. The ABPI promoted a successful series of Best Practice workshops where member companies share their ideas on manufacturing topics.

A common strategy for pharmaceuticals
Following the successful conclusion of the Pharmaceutical Industry Competitiveness Task Force, the ABPI has continued to collaborate successfully with Government at the highest level and across departments through the Ministerial Industry Strategy Group and the Industry Strategy Group.

The Association has worked constructively with Government on a number of areas including animal licence applications, animal extremism, access to medicines, manufacturing issues, EU pharmaceutical legislation, patient packs and paediatric medicines.

The Association has developed a good working relationship with the new Medicines and Healthcare products Regulatory Agency and this has played a significant part in helping industry achieve a reasonable outcome from the EU Review of Pharmaceutical Regulation.