UK price cuts feature in finalised price scheme

Thursday 20 November 2008
James Mills - Deputy Editor

The UK pharmaceutical industry has reached agreement with the government on a new pharmaceutical pricing scheme (PPRS) with both sides of the negotiations expressing satisfaction with the outcome. Price cuts are not to be as deep or rapid as first expected and pharmaceutical companies launching innovative medicines will have greater flexibility where pricing is concerned.

Until now, pharmaceutical industry profits have been regulated in the UK under a 50-year-old voluntary scheme that mostly allows companies free pricing at launch. An Office of Fair Trading report two years ago urged that value be better reflected in medicines pricing, and the government surprised industry last year by announcing an end to the PPRS without revealing what new pricing system might take its place. Temporary schemes, both statutory and voluntary, have been in place since August 31st as negotiations on a permanent scheme continued (Scrip Online, September 1st, 2008).

So far, the new scheme has only been published in outline. The government says the agreement will provide stability and predictability in pharmaceutical pricing for the next five years, which was one of the industry's main aims in the negotiations...


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