Revisions to statutory scheme for pricing branded NHS medicines

This consultation is on proposed revisions to the statutory scheme to control prices of branded NHS medicines to make it work more effectively, and to align it more closely to core parts of the voluntary Pharmaceutical Price Regulation Scheme (PPRS). The statutory scheme covers those companies that decide not to join, or withdraw from, the PPRS.

The proposals include:

• introducing a new price adjustment on sales of branded drugs to the NHS

• applying the price adjustment to average selling prices in hospitals

• removing some of the current exemptions, and introducing a small firms exemption in their place

The draft regulations reflect the proposed changes and, to simplify matters, consolidate the existing regulatory provisions.

The PPRS is negotiated between the government and the pharmaceutical industry to control the prices of branded drugs sold to the NHS. It seeks to achieve good value for money for the NHS, and a fair return for the industry to enable it to research, develop and market new and improved medicines.