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PPRS scheme payment percentage to rise by 6.62% in 2015

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The amount of payment due from pharma via the PPRS scheme for next year has been confirmed by the Department of Health and the ABPI.

They calculate that a payment percentage of 10.36% will be due in 2015 in order to underwrite the growth of the medicines bill, which in Q3 received a sum from the industry totalling £79 million.

The new fixed amount has risen dramatically from 2014’s lower rate at 3.74%, and if based on accurate estimates the payments for 2016-2018 would be 15% each year. 

Government gets £74m rebate from pharma

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The industry will make payments to the Department of Health if NHS spending on branded medicines exceeds the allowed growth rate

The UK government has received a £74 million refund from the pharma industry after it was deemed to have spent too much on patented medicines.

The repayment is the first under an onerous new drug pricing arrangement for the industry known as the Pharmaceutical Price Regulation Scheme (PPRS), which from 1 January this year mandates that pharma can only grow by a certain amount.

Under this set up UK pharma firms must keep NHS spend on branded medicines flat for two years, and keep the growth rate below 2% for a further three years.

NICE chair: pharma must show how it prices drugs

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Professor David Haslam (Credit: Financial Times Live)

The pharmaceutical industry must be willing to show the public how it prices its drugs - or face losing its trust.

This is according to the chairman of NICE Professor David Haslam, who tells Pharmafile that currently no one outside the boardroom of a pharma firm knows how it evaluates a drug’s worth.

“If we could have greater transparency about pricing, then a lot of problems could be bypassed - it’s not just that drugs are expensive and NICE says no, it’s about the cost-effectiveness of
these medicines. 

Boehringer: ‘devil in detail’ on new drug pricing policy

Zinta Krumins, the newly-appointed managing director of Boehringer Ingelheim UK and Ireland, has warned that the ‘devil is in the detail’ when it comes to the value-based assessment (VBA) of drugs.

Krumins, who took up the post in January, said then that it was “an interesting time for our industry”.

Deepak Khanna: the legacy of an outgoing ABPI president

Published on 31/03/14 at 08:18am

You’d be forgiven for thinking that Deepak Khanna, the man who has overseen the activities of the ABPI for the past two years, has regrets about taking on his role. But in his final interview with Pharmafile before a new president takes over on 10 April, Khanna says he would certainly not change his decision to accept the nomination for the position.

That does not mean, however, that it hasn’t been a tough two years.

NICE launches VBA consultation

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NICE has today launched its consultation into how value-based assessment of drugs will work in practice, which will run for the next three months until 20 June.

This is part of the renewed PPRS scheme, the new drug pricing policy for the UK, which came into force in January and was set to be a value-based pricing system, but has been downgraded to ‘value-based assessment’ (VBA).

PPRS deal ‘dreadful’, says EMIG

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The Ethical Medicines Industry Group (EMIG) has slammed the new PPRS plan, calling it a ‘dreadful deal’ for its members.

The UK research-based trade association represents small and medium-sized (SME) pharma and biotech firms, and it says the new PPRS is in danger of driving away investment from the UK.

EMIG chairman Leslie Galloway told Pharmafile: “The more you get into the detail, the more concerned I am about this dreadful deal.”

NICE tells pharma: don’t blame us for rejections

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The head of NICE has publicly defended his agency against more pharma criticism but admits that it can make changes to its processes that will allow more drugs onto the NHS.

In an open letter to the Daily Telegraph newspaper Sir Andrew Dillon, NICE’s chief executive, said he would ‘like to say yes’ to all new medicines but added that “they are not always sufficiently better than the treatments they would replace to justify their cost.”

He argued that some “have proved unsafe in general use” and NICE’s “cautious guidance has helped the NHS minimise their impact”.

Pharma slams PPRS deal

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The fallout from last week’s new drug pricing plan in the UK is continuing as nine pharma firms write an open letter lambasting the PPRS policy and resulting price freezes.

The much-anticipated negotiations between the government and the ABPI were published last week, but the deal was instantly criticised by many in the industry.

PPRS: thumbs-down from pharma

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A missed opportunity for patients, which creates financial problems for smaller companies while stifling life science investment - these are just a few of the reactions from pharma to yesterday’s five-year UK government drug pricing agreement.

The existing PPRS pricing scheme is to remain in essence intact, but there is a limit now on how much the NHS drugs bill can grow until the next agreement is set in 2018.

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