Branded drug prices to be cut in 2014 under UK’s new scheme – FirstWord Pharma

The UK Department of Health on Wednesday unveiled details of the new voluntary Pharmaceutical Price Regulation Scheme (PPRS), with drugmakers required to accept a rebate system that reduces the cost of branded medicines to the NHS by 3.74 percent in 2014. The Department of Health noted that the five-year deal “will introduce a fixed limit on NHS spend on branded medicines for the first time ever with all additional expenditure above this level paid for by industry.”

Under the deal, which was reached with the Association of the British Pharmaceutical Industry (ABPI), pharmaceutical companies agreed to keep NHS expenditure on branded medicines flat for two years, with growth rates of 1.8 percent allowed in the subsequent two years and 1.9 percent in the final year. The Department of Health indicated that NHS spending on branded medicines stood at more than 12 billion pounds ($19.3 billion) in 2011/12. The scheme will come into force on January 1.

Read the source article at FirstWord Pharma

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