DHSC hails success of medicine pricing scheme

But the voluntary scheme for branded medicines pricing and access – known as VPAS - is undermining UK life science competitiveness and needs overhauling, the Association of the British Pharmaceutical Industry has said. 

The current VPAS scheme finishes at the end of this year and negotiations are due to start shortly for a successor scheme to run from 1 January 2024. The government’s side in the negotiations with the ABPI will be led by Sir Hugh Taylor, chair of Guy’s and St Thomas’ Foundation Trust.

Health minister Will Quince (pictured) said: ‘Not only has VPAS delivered value for money for the taxpayer and saved the NHS billions of pounds, it has also saved people’s lives by supporting cancer patients and others with life-threatening conditions to have rapid access to new, life-saving and life-extending treatments.

‘The scheme is vitally important as it keeps the branded medicine bill affordable for the NHS, and ensures the UK life sciences industry can earn the money it needs to fund research and development into new and improved medicine.’

The scheme has enabled NHS England to roll out a ‘triple therapy’ for cystic fibrosis’ strike deals on HIV drugs; and provide three new treatments for children and adults with spinal muscular atrophy, the leading genetic cause of infant death. 

However, the ABPI argues that the rebates paid under the scheme have increased dramatically – amounting to more than a quarter of net sales value this year – and undermine the government’s ambitions for life sciences. Other countries with similar rebate schemes are typically limiting them to ensure there is less impact on the pharmaceutical industry.

On its website, the ABPI argues that the current rebate rates are adding to challenges around lower economic growth and investment; declining UK manufacturing competitiveness; a collapse in clinical trials and research; variation in access and uptake of medicines; and poor patient outcomes. It is calling for a sustainable approach which brings repayment rates into line with comparator countries – with a return to internationally competitive rates increasing research and development investment by 7.8% over 2023 to 2028.