Barker takes ABPI reins as crunch time nears for PPRS
pharmafile | September 2, 2004 | News story | |Â Â Â
The ABPI's new Director General Dr Richard Barker has had to hit the ground running in his new role at the UK industry organisation, as a number of crucial issues come to a head.
Dr Barker officially took up the post on 1 September, but began work several weeks early at the organisation's Whitehall offices, covering for his predecessor Dr Trevor Jones who was taking a well-earned holiday.
Foremost among the tasks facing the ABPI is the re-negotiation of the Pharmaceutical Price Regulation Scheme (PPRS), the profit-control system used to regulate the UK's branded medicines prices.
Dr Barker declined to comment directly on how discussions with the government were progressing, and would not be drawn on whether a new agreement would be reached as scheduled by October, when the current five-year deal expires.
The government is reported to have tabled two options for an updated PPRS agreement – either a 10% price reduction over five years, or a 6% cut over two years.
The last two reviews of the long-standing system saw cuts of 4.5% and 2.5%, which the industry reluctantly had to accept given little other choice other than to scrap the system and renegotiate a new payment and reimbursement mechanism.
A consultation launched a year ago asked stakeholders about the future of the system, giving them four options, ranging from a continuation of the current agreement without change, with change, the potential for regulation or completely new proposals put forward by individuals and organisations.
Following the consultation, the ABPI and the Department of Health had been in negotiations since February, with both sides indicating their confidence in the current model.
Minister of State for Health Rosie Winterton told the Commons in July: "It remains the government's preference to include another voluntary PPRS agreement with the research-based pharmaceutical industry and to do this as speedily as possible, commensurate with a satisfactory outcome for the taxpayer and the national health service.
These sentiments were echoed by Dr Barker, who told Pharmafocus: "I am personally in favour of the PPRS," adding that it had been "a force for good, not just for the industry but for its contribution to the economy."
Despite this broad agreement, his comments suggested that the crucial decisions had yet to be taken.
"We will have to see if there is another PPRS or what form it will take – that is something for the next five years," he said.
Seasoned observers say the Department of Health's key commitments to improving the nation's health such as the reduction of deaths due to heart disease rely on an expansion in the cost and volume of prescribing.
The government's Prescription Pricing Authority reported that in the year to March 2004, prescription costs for the NHS rose 9% and that new cost pressures, repeat dispensing and the GMS contract would maintain increases involume and cost, albeit at a slower rate of growth.
Against this background, the industry looks likely to accept another cut in the PPRS, balanced as it is with incentives to increase prescribing in the GMS and NICE's recently published guidelines on hypertension.
Meanwhile, a number of other pressing issues of industry-wide concern have come to the fore, making for a busy summer holiday period for the ABPI.
Following a rising number of attacks on companies undertaking animal research, employees, families and contractors, the government unveiled plans for greater efforts to counteract the terror tactics of animal extremists.
The industry has welcomed the plans, but says a dedicated law may still need to be introduced to outmanoeuvre the activists and maintain confidence in the UK as an R&D base.
Setting out his agenda as Director General, Dr Barker said this was one of his three key goals.
"There are things that only the ABPI can do, and I am personally very motivated to be part of – and that certainly includes reinforcing the UK as a global centre for R&D."
Second is the issue of access to modern medicines, on which he commented: "Access to these medicines is still among the worst in Europe. From a personal point of view and a moral point of view we have to address this issue urgently."
Thirdly, Dr Barker says he wants to ensure that the industry in the UK reflects its true contribution to the country, both in the medicines it produces and the wealth it creates.
He revealed that the ABPI had already made its submission to a special Commons Health Committee inquiry into the "influence of the pharmaceutical industry," an investigation which he agreed had been influenced by the on-going controversy around data and safety issues connected with GSK's Seroxat and other SSRI antidepressants.
"I think the vast majority of its [the industry] influence is positive and we are going to be emphasising this."
Dr Barker also paid tribute to his predecessor Dr Jones who is stepping down after ten years in the role.
"Everybody says Trevor's shoes will be difficult to fill," said Dr Barker. "He is certainly someone I have admired and his contribution has been tremendous in terms of the ABPI's stature and influence and internationally, so clearly I am hoping to continue that."
Dr Barker said a top priority would be to review the ABPI's activities to ensure it remained responsive to the needs of its members and cost-effective in its activities.
Related articles:
Industry welcomes broadening of hypertension treatment
Thursday , August 26, 2004
Cautious welcome for government crackdown on extremists
Thursday , August 05, 2004
