Government and pharma strike new NRT ‘kickback’ deal
pharmafile | November 21, 2003 | News story | |Â Â Â
GlaxoSmithKline, Pfizer and Novartis have all agreed special new deals with the government to provide extra smoking cessation products to PCTs for free.
The government first proposed a 'cashback' system to reimburse the NHS for its expenditure on nicotine replacement therapy (NRT) in early 2002, but has only now agreed terms with all three companies.
The number of prescriptions for NRT nearly doubled last year, and is certain to continue growing, in particular because smoker quitting rates are one of the key performance indicators on which PCTs are judged.
The government has also set the NHS a target of helping 800,000 people to quit by 2006, and says the total number of quitters (after four weeks follow-up) has reached nearly 125,000 for 2002/3.
Well over two million prescriptions are expected to be written this year for NRT products, while the parallel over the counter sales in pharmacies and supermarkets are also growing strongly.
GSK's NiQuitin CQ brand controls a majority share of the prescription market ahead of Pfizer's Nicorette and Novartis' Nicotinell, while in the consumer market, Nicorette dominates.
The prescription price of each of the products is around nine pounds, a third cheaper than for consumers buying them over the counter, but the government nevertheless felt it necessary to demand an exceptional arrangement for NRT above and beyond the UK's PPRS reimbursement system.
The new agreement means better value for money for the NHS and in return guarantees no imposed limits to NRT prescribing.
Because of the highly competitive nature of the prescription market, the agreement had to ensure no brand would benefit from the scheme more than the other. The terms of each deal will therefore remain confidential, ensuring that prescribing will not be influenced by the rebate available.
Under the agreement, the supply of free NRT products will be linked to the national rate of growth in the category prescription. The DoH will analyse data every quarter, resulting in deliveries of the products to PCTs every six months.
Announcing its deal with the government, GSK said: "To match the government's own commitment, GSK has voluntarily agreed to kickback a proportion of the increased volume of NiQuitin CQ products directly to PCTs.
"It is hoped the rebate scheme will help encourage widespread prescription of these effective treatments, whilst managing the impact of the increases on local NHS budgets.
GSK has also reached an agreement with the DoH to include its non-NRT smoking cessation pill Zyban in a similar rebate scheme.
PCTs who agree individual deals with the pharma companies will be exempt from the programme, as will prescriptions issued under patient group directions.
