Started negotiations on new drug pricing schemes

• Negotiations between the Government, NHS England and the British Pharmaceutical Industry Association on a new voluntary scheme for the pricing of branded medicines will begin (ABPI) today

• Parties are negotiating agreements to support better patient outcomes, healthier populations and a financially sustainable NHS while supporting economic growth

• The new voluntary scheme will come into effect from 1 January 2024 to replace the current scheme which expires on 31 December 2023.

Negotiations for successors to voluntary schemes on branded medicines, pricing and access (VPAS) starting today [Thursday 4 May] Between government, NHS England and the pharmaceutical industry.

For more than 65 years, the government and the pharmaceutical industry have worked together to help manage the affordability of medicines for the NHS, ensure that new medicines are available and uptake quickly for patients, while empowering the UK life sciences sector. We have been able to support and continue to provide. new innovations and economic growth.

Government, NHS England and industry were represented at the first meeting. ABPI – Expected to agree on common negotiating objectives to work towards a mutually beneficial agreement that supports better patient outcomes and healthier populations, a financially sustainable NHS and UK economic growth. increase.

Successful negotiations will be determined by securing new voluntary schemes such as:

• Promote better patient outcomes and healthier populations by:

  • Giving NHS patients rapid access to new clinical and cost-effective medicines through streamlined approvals and better commercial and funding arrangements that reward innovation.This will make the UK an internationally competitive place to launch new medicines
  • Addressing undue variability in national approved drug use and patient access
  • Encourage the development of innovative and cost-effective medicines

• Supporting UK economic growth by:

  • Supporting the UK life sciences industry and driving economic growth, particularly through investment in R&D and clinical research
  • Ensuring the commercial environment for branded drug suppliers to the NHS helps make the UK an internationally competitive investment destination
  • Bring net benefits to the UK economy as a whole

• Contribute to a financially sustainable NHS by:

  • Keeping prices of branded medicines affordable for the NHS
  • Supporting the NHS and industry to develop sustainable financial and investment strategies
  • It delivers value to taxpayers and the NHS by ensuring a resilient supply of safe and effective medicines at reasonable prices and promoting efficient competition in medicine supply.

Health Minister Will Quince said:

With these negotiations, the new scheme will provide significant savings to our health services, ensure access to innovative life-saving medicines for NHS patients, and reduce wait times, one of the Prime Minister’s five priorities. by helping reduce the time required to ensure that it continues to be cost-effective.

The current voluntary scheme supports investment in NHS services and saves billions of pounds for the NHS, while promoting innovation and a successful life sciences sector.

It is very important that the successors of the current system contribute to taxpayers, patients, the NHS and life sciences.

Richard Torbet Chief Executive Officer ABPISaid:

These negotiations provide an opportunity to secure the UK’s position as a global leader in life sciences research and medical innovation, while ensuring the best possible outcomes for UK patients and a thriving economy.

Together we can boost UK science and create the conditions for innovative medicines to unlock their true value as an investment in the health, wealth and productivity of our nation.

Sir Hugh Taylor, who chaired the Accelerated Access Review in 2014 and brought innovative technology to the NHS, said last month: VPAS diagram.

Sir Hugh Taylor said:

Future voluntary schemes must continue to support the life sciences sector while benefiting the NHS and ensuring patient access to the best medicines.

We look forward to reaching an agreement that will not only benefit the NHS, but encourage the pharmaceutical sector to continue to invest in the UK.

The current scheme, which came into effect in 2019, is scheduled to expire at the end of 2023. Negotiations are expected to conclude in the fall, ahead of the new scheme, which will start on 1 January 2024.