PPRS reaction
pharmafile | July 16, 2008 | News story | Research and Development, Sales and Marketing |Â Â biotechÂ
Aisling Burnand, chief executive of the biotech representative body the BIA welcomed the deal, saying she was pleased the "months of uncertainty" had ended and that a new voluntary scheme would be agreed.
The BIA and the EMIG, which represents small to medium sized pharma companies had both expressed dissatisfaction with the existing PPRS system, which they felt did not make allowances for their much smaller revenues and product portfolios. But both bodies have welcomed greater measures to accomodate smaller businesses within the PPRS system.
"We are also pleased this new voluntary scheme does make some allowances for the smaller companies which comprise the majority of the UK's biotechnology sector, and that for companies with a turnover of less than £25 million there is a price cut exemption of the first £5 million of sales", said Burnand.
"This threshold is not as high as we would have wished it to be, but the level which has been agreed is the result of continued work by the BIA on behalf of its members and we are pleased that their needs have been reflected to some extent."
Clive Dix, chairman of the BIA, comments: "We recognise that this negotiation has been extensive and, by its nature, complex. There remains a great deal of work to be done to establish the detail behind this outline agreement and we look forward to being part of this process. A return to stability and predictibility is vital for all concerned if we are to keep the UK R&D base strong in the UK."
Leslie Galloway, chairman of EMIG, welcomed the new exemptions as a "large win" for its membership. The exemption thresholds for price cuts will be increased five fold and Galloway says this will improve the viability of smaller pharma companies.
Small-medium sized pharma
Companies represented by EMIG provide 40% of branded products used by the NHS, yet account for only 10% of the drugs bill. Small to medium-sized companies have felt unfairly treated in previous PPRS negotiations.
EMIG represents over 45 member companies in the emerging pharmaceutical sector. Between them, EMIG members employ approximately 4,000 people and have a turnover of approximately £500 million.
The organisation says it has "fought hard" in the recent PPRS negotiations to gain recognition of its members' needs, and says the decision shows their voices are starting to be heard.
As with other industry stakeholders, the EMIG says it will scrutinise the details as they emerge to understand the full implications for its members, as well as patients.
Related Content
Cellbyte raises $2.75m to fund pharma drug launch platform
Cellbyte has announced that it has raised $2.75m in seed funding for the streamlining of …
Lilly opens fourth US Gateway Labs site
Eli Lilly has opened its newest Lilly Gateway Labs (LGL) site in San Diego, California, …
LGC Group opens $100M Organic Chemistry Synthesis Centre of Excellence
LGC Group, a life sciences company, has opened its new Organic Chemistry Synthesis Centre of …
