UK’s hidden drug pricing mechnism

The NHS Statutory Scheme for the Pricing of Branded Medicines is being revised and is open to consultation until the 31st July. The Statutory Scheme aims to control prices of branded NHS medicines for those companies that decide not to join, or withdraw from, the Pharmaceutical Price Regulation Scheme (PPRS).

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. It is due to be replaced by Value Based Pricing from January 2014. Where the Statutory Scheme fits into all of this is not entirely clear. Hopefully, more details are in the consultation documents here.

Photo credit: J D Mack via Flickr Creative Commons