The government and the Association of the British
Pharmaceutical Industry (ABPI)
have agreed the outline terms of a deal enabling the NHS to
get the best value and most effective medicines into use
more quickly.
The voluntary scheme for branded medicines pricing and
access is expected to come into effect from January 2019
after the final details have been finalised.
Parts of the deal agreed in the heads of
agreement for the voluntary scheme include:
- faster assessments of the clinical and
cost-effectiveness of all new medicines by the National
Institute for Health and Care Excellence (NICE)
- NHS funding for all medicines recommended for use
by NICE
- early engagement with companies to ensure clinicians
and the NHS infrastructure are ready to use new medicines
The voluntary scheme is also designed to keep growth in the
branded medicine bill predictable and affordable by placing
a 2% cap on the growth in sales of branded medicines to the
NHS.
Pharmaceutical companies will repay the NHS for spending
above the 2% cap, which is expected to save the NHS £930
million in 2019.
Other measures to keep the cost of medicines to the NHS
affordable are included in the plan, such as simplifying
price controls, and faster and more flexible commercial
discussions between the NHS and pharmaceutical companies.
If agreed in full, the voluntary scheme for branded
medicines pricing and access will replace the
Pharmaceutical Pricing Regulation Scheme (PPRS), which
expires on 31 December 2018.
Health and Social Care Secretary 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 reinvest 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 benefiting earlier.
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 flexibilities, helping
SMEs to bring their innovative treatments into the NHS.
Mike Thompson, Chief Executive of the ABPI,
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 2% in any of the next 5 years – or industry refunds
the money. This is a significant contribution by
pharmaceutical companies to support the NHS.
