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.
There are a number of ways in which medicines costs are managed, with the UK regarded as having one of the world’s most rigorous systems.
NICE – the National Institute for Health and Care Excellence - is the body which advises the NHS on whether a new medicine is cost effective; It does this by comparing how much it costs to give a patient an extra year of ‘quality life’ compared with the treatment already being used.
If the new treatment is deemed to be too expensive compared with the benefits it brings it is not recommended for use.
Companies need to take into account the costs of research and development – not just for the successful medicine but also for the many which have failed.
Our industry constantly works with NICE to make sure that their assessments remain fit for purpose across all disease areas to ensure transparency, clarity and fairness for all patients throughout the UK.