07.11.13
DH and ABPI negotiate new drugs price deal
The government has agreed a new deal to stop the prices of branded drugs escalating. The Pharmaceutical Price Regulation Scheme (PPRS) applies to all licensed prescription medicines that the manufacturer has applied a brand name to, and will be introduced from 1 January 2014.
The deal will run for five years, with the bill to remain flat over the next two years and grow by under 2% in the following three years. Above this level, the industry will fund any costs.
The negotiations were agreed between the Department of Health and the Association of the British Pharmaceutical Industry (ABPI). Companies who choose not to take part are covered by a statutory scheme, which will introduce a 15% price cut to ensure there are safeguards for the amount the NHS pays for medicines.
Health secretary Jeremy Hunt said: “This agreement ensures NHS patients will receive the best and most advanced medicines in the world while managing the cost.
“UK pharmaceutical companies have responded to the challenges we face as a country, both in terms of the increased demand for medicines and pressure on public spending. I hope in return we have given them the certainty and backing they need to flourish as a sector both here and in the global market.”
ABPI president Deepak Khanna said: “This has been a very challenging and long negotiation and it should not be underestimated how tough this deal is for the industry. However, we have agreed to play our part in recognising the financial challenges facing the NHS whilst focusing on the key issue of ensuring that patients in the UK get access to the medicines they need.
“The Government and the NHS need to recognise that medicines are not a cost but an investment in patient care and do their part to ensure that patients have access to new and innovative medicines that will improve the quality of their lives.”
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