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#ValuingMedicine | Medicine pricing in the UK

Medicines bring huge value to NHS patients. The development of new medicines is uncertain, costly, and involves significant rates of failure. The pharmaceutical industry spends $160 billion per year on research and development.

The private sector produces nearly all the medicines and vaccines available to us. Companies need to make a profit – and a return – on global investment in order to maintain investment in the next generation of medicines.

When setting the price of an individual medicine, companies will consider a number of factors including how well the medicine treats patients, how many patients might benefit from it, the value that health systems might place on a medicine in the disease area in question and the price of competing products.

Click the links below to explore how medicines are researched, developed and priced in the UK.

How are new medicines developed?

Medicines and vaccines are some of the most important ways we have to fight disease on a global scale and keep people fit and healthy.

How are medicines priced?

The UK has robust measures in place to ensure that medicines and vaccines are both clinically and cost effective before they can be used in the NHS.

The Voluntary Scheme on branded medicines

The new 2019 Voluntary Scheme ‘VPAS’ is a commitment by industry, the NHS and Government to support innovation for the benefit of patients across the UK. 

What is the life cycle of a medicine?

Find out about the life cycle of a medicine and how, once a new medicine is no longer covered by a patent, it can be manufactured by any company around the world as a generic.

What is the NICE Methods Review?

The National Institute for Health and Care Excellence is undertaking a review to optimise its evaluation methods and support the ambition of the NHS to provide high quality care that offers good value to patients and to the NHS.

Improving access to medicine in the UK

The UK is a world leader in pharmaceutical research and development, and it is vital that NHS patients are able to access the latest treatments as fast as patients in other countries.

The future of medicine

With 7,000 medicines and vaccines in the global pipeline, the future of health looks exciting. The pharmaceutical industry is pioneering new treatments and new technologies that will change the face of modern medicine. 

Supporting innovative medicines funding in Scotland

Scotland receives superb value from the latest medicines and vaccines thanks to robust measures which ensure NHS Scotland uses treatments that are both cost and clinically effective.

What was the PPRS?

The UK has a number of different mechanisms for ensuring value for money and cost control in the NHS. In addition to NICE which evaluates cost-effectiveness, the Pharmaceutical Pricing Regulation Scheme (PPRS) helps controls the amount the NHS spends on new medicines.