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Cutting-edge and best value drugs will be fast-tracked through the approval process so patients can gain access up to six months earlier
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Deal will also mean a more flexible and streamlined commercial process which will make UK more attractive to investors
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Under the new Voluntary Scheme for Branded Medicines Pricing and Access, the NHS across the UK would save almost £1 billion on medicines next year which could be put back into NHS services.
23 Nov 2018 Posted in
News
By
Press Office
Patients could have access to new, ground-breaking medicines up to six months earlier and the NHS across the UK is expected to save around £930 million on its medicine bill under a new scheme being finalised with the pharmaceutical industry.
The Government and the Association of the British Pharmaceutical Industry (ABPI) have reached a deal on the Heads of Agreement for a new voluntary scheme for Branded Medicines Pricing and Access, which is expected to come into effect from January 2019.
The final details are still being finalised, but a major milestone has been reached in the discussions which would see the most transformative and best value medicines made available on the NHS more quickly through better horizon scanning, earlier commercial dialogue, and faster appraisals from The National Institute for Health and Care Excellence (NICE).
Health Secretary Matt Hancock said:
“This new deal will be good for patients, good for the NHS and good for the UK life sciences industry. Cutting-edge and best value medicines will be fast-tracked and we will cut our medicines bill by £930 million next year following tough but constructive negotiations with the pharmaceutical industry – money we can redeploy into better NHS services, alongside the NHS Long Term Plan.
“The deal will also ensure the UK remains an attractive hub for research and investment so the next generation of ground-breaking treatments can be developed here with patients benefitting earlier.”
The terms in the Heads of Agreement set out how the 2019 Voluntary Scheme, once agreed in full, will benefit patients by ensuring the NHS gets the best value and most effective medicines into use more quickly by:
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Faster NICE appraisals meaning that patients are likely to get access to new medicines up to six months earlier than today
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More NICE technology appraisals than ever before so all new medicines are assessed by NICE, and the NHS is required to fund all those recommended for use
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Smoother and faster introduction of transformative medicines through better horizon scanning and early engagement with companies to ensure clinicians and the NHS infrastructure are ready to use them more quickly
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More commercial options to incentivise better value for the NHS
Health Minister Lord O’Shaughnessy said:
“The agreement is a vote of confidence for our world-leading life sciences sector, and shows the NHS is ready to embrace innovation so that patients get the best medicines earlier.
“Small and medium-sized business in particular will be better supported through greater commercial flexibility, helping SMEs to bring their innovative treatments into the NHS.
The agreement will also ensure the UK remains an attractive hub for our world-leading life sciences sector, a central part of the government’s Industrial Strategy.
Mike Thompson, Chief Executive of The Association of the British Pharmaceutical Industry, said:
“This agreement is a commitment by the Government and the NHS to work with us to support innovation for the benefit of patients. This means that people across the UK should see better and faster access to the most effective new medicines and vaccines.
“Under the scheme the NHS will have absolute certainty that the sales of branded medicines will not grow by more than two per cent in any of the next five years – or industry refunds the money. This is a significant contribution by pharmaceutical companies to support the NHS.”
The scheme is designed to keep growth in the branded medicine bill predictable and affordable by:
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Placing a 2% cap on the growth in sales of branded medicines to the NHS, with pharmaceutical companies repaying the NHS for spending above that limit – delivering expected savings of around £930 million in 2019.
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Supporting smaller companies to innovate through payment exemptions and targeted case management through NHS England commercial discussions
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Simplifying price controls: reducing unpredictability and complexity for companies and the NHS
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Enabling faster and more flexible commercial discussions than ever before to get the best value and most effective new medicines into use as quickly as possible.
