Government consults on UK value-based pricing
pharmafile | December 17, 2010 | News story | Sales and Marketing | ABPI, Drug pricing, pharma pricing, value-based pricing
The government has begun a consolutation process for its plans to change the way medicines are priced in the UK.
The current PPRS pricing system is set to be replaced in 2014 by value-based pricing, a move the Department of Health says will give drugs a “price that reflects the value they bring”.
“Value-based pricing will ensure that the price the NHS pays for medicines is based on an assessment of its value, looking at the benefits for the patient, unmet need, therapeutic innovation and benefit to society as a whole,” it says.
The government acknowledged the PPRS had provided “some stability”, but says it does not “promote innovation or access in the way we are looking for”.
Health secretary Andrew Lansley said: “I do not want in future for the effect of the medicines pricing system to be the denial of effective and appropriate treatments to NHS patients.
“So we need to change the way drugs are priced and ensure value for money for the NHS.”
The Conservatives have long been critical of patients’ access to medicines on the NHS, especially for new cancer drugs.
In October, their coalition government established a Cancer Drugs Fund as an interim measure to help increase access before the introduction of VBP in 2014.
The changes will see more decision-making power being transferred to regional GP consortia. This could mean regional groups could make their own decisions on whether to fund a drug or not.
Lansley added: “Doctors should be able to focus on what matters most – achieving the best health outcomes for their patient, not debating the relative value and price of a drug.”
Lansley also reaffirmed NICE’s position in the new order, saying the Institute would still have “an important advisory role” in which it would continue to assess new drugs’ clinical benefits and provide clinicians with authoritative evidenced-based advice.
ABPI: “Industry must demonstrate the full value of its medicines”
Dr Richard Barker, director general of the ABPI, said he looked forward to representing the pharma industry in co-creating the new VBP system with the government.
“As government has said, the priority in any new system must be rapid and consistent patient access to new medicines – value is meaningless without consistent access,” Barker said.
“Any new system must also fairly recognise and reward innovation and investment in research and development.”
Barker said he fully agreed the government and NHS should seek value for money from medicines, and added that pharma would have an important role to play.
“Our industry must demonstrate the full value of its medicines, it is for government to put in place processes which assess that full value, and then secure access to that value for NHS patients,” he added.
The consultation, A new value-based approach to the pricing of branded medicines, will run for 13 weeks.
Ben Adams
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