New drug pricing plans will ‘damage UK biotech’
pharmafile | August 16, 2013 | News story | Research and Development, Sales and Marketing | BIA, Hunt, NHS, VBP, bates, biotech
The BioIndustry Association is warning that the government’s new drug pricing scheme could put future investment in the UK’s biotech base at risk.
This is the biotech lobby group’s first public statement on the government proposals for a new statutory pricing scheme, known as value-based pricing (VBP).
VBP is looking to replace the current PPRS pricing scheme, and aims to re-assess the cost government is willing to pay for drugs based on new definitions of value.
The move has been in the works since 2010 and is set to come into place in January next year. But details on the plans remain vague, and the ABPI are still in negotiations with the Department of Health over what VBP should look like despite the looming deadline.
Steve Bates, the BIA’s chief executive, said: “The government’s pricing consultation is an opportunity of vital significant importance to the UK life science sector, which will set the attractiveness of the UK as a location for ongoing medical research and development and ultimately patient access to new treatments.
“The perception of the UK as a market for innovative products has an important bearing not only on the global investment decisions of multinational biopharmaceutical companies but also upon private investment to support early stage bioscience companies.
If there is uncertainty regarding the appetite in the NHS to fairly support the uptake of innovation, private investors are unlikely to view investment into UK biosciences favourably.
“If the life sciences sector is to be an engine of growth for the UK economy then it is vital that companies are rewarded for their innovation in their home market. It is harder to sell innovative UK medicines around the globe if they are not purchased by the NHS.”
The BIA has submitted its thoughts on the statutory pricing scheme consultation to the UK government and makes four main points:
- A poor reimbursement framework undermines efforts in basic and translational research and development
- The government’s proposal is at odds with the positive actions and interventions taken forward under its Strategy for UK Life Sciences
- The proposals risk the UK ceasing to be an attractive global launch market for new treatments
- The life sciences sector is an ecosystem – where investment in research and development is linked to potential for reward for the resulting innovation.
Many in pharma have expressed their concerns over the future of VBP, but it seems the industry may now be in the driving seat given that the scheme’s creator, the former health secretary Andrew Lansley, was replaced by Jeremy Hunt last year.
Hunt has almost no NHS or pharma experience as a minister, having previously worked in the Cabinet as the secretary for media and the Olympics.
This means that pharma may have the upper hand in getting what it wants, which is essentially to keep the PPRS scheme with certain elements of VPB wedded to it.
A final deal on what the UK’s drug pricing scheme will look like is expected by the end of the year.
Ben Adams
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