Government announcement about the new PPRS

Joint Department of Health and ABPI press release announcing that a deal has been reached on some areas of the new Pharmaceutical Price Regulation Scheme (PPRS) covering supply of branded pharmaceuticals to the NHS. These include:

The press release also notes that agreement was reached on measures to provide patients with faster access to new medicines that are clinically and cost-effective, and that the new PPRS is to be a “non-contractual voluntary scheme” in place for the next five years.

The Department of Health has also published a consultation document (40 pages, 4.8M PDF) on the statutory scheme to control the prices of branded NHS medicines. The statutory scheme, to be implemented from 1 September 2008, will apply to any company that does not sign up to the new PPRS (or to all companies if there is no new PPRS by then). Under the proposed statutory scheme, the prices of branded medicines will be frozen to 29 February 2008 levels until 31 December 2008, and cut by 3.9 per cent on 1 January 2009. In addition, from 1 January 2009 the prices of out-of-patent branded medicines will be capped at 1.5 times the reimbursement price of equivalent generics (if any). The Department states that these measures are expected to deliver savings equivalent to a 5 per cent price cut.

Responses to the freeze of prices in 2008 by Tuesday 15 July 2008. Responses to the price control proposals from January 2009 by Thursday 25 September 2008.

For further information or advice please contact Pedro Fernandes.

Filed under Department of Health, Healthcare, Pharmaceuticals.

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