Pricing of branded health service medicines
Seeks views on proposals to change to how prices of branded NHS medicines are determined and re-align savings alongside PPRS.
We are seeking views on proposals to reform the statutory scheme that controls prices of branded health service medicines to make it work more effectively, and to re-align the statutory scheme savings with the savings made by the voluntary Pharmaceutical Price Regulation Scheme (PPRS).
The consultation sets out a number of options:
- option 1: a further cut in the maximum price of products in the statutory scheme
- option 1a: a further cut in the maximum price of products in the statutory scheme including new products
- option 2: a percentage payment by companies replacing the existing price cut
- option 2a: a percentage payment by companies including new products
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. The statutory scheme covers those companies that decide not to join, or withdraw from, the PPRS.