NHS agrees 7% price reduction for prescription drugs for next five years
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《英国医生杂志》
The NHS has agreed a 7% reduction in price for the purchase of branded prescription drugs by the NHS, after negotiations with the Association of the British Pharmaceutical Industry.
The deal has been agreed as part of the pharmaceutical price regulation scheme, a voluntary agreement between the association and the four health departments in England, Scotland, Wales, and Northern Ireland that limits the price of branded, prescription only drugs prescribed on the NHS.
It allows drug companies complete freedom to set the price of new drugs launched in the UK market but sets a target rate of return on capital, and allowances for expenditure on research and development and marketing. Companies that exceed the level of profit allowed under the scheme are required to repay the excess. The scheme is unusual because it caps profits on sales to the NHS, while most other health systems limit the prices of individual drugs. It is renegotiated every five years, and the new pricing scheme starts on 1 January 2005.
Under the new agreement manufacturers will be able to decide which drugs to reduce in price to achieve an overall price reduction of 7% in sales to the NHS. In some cases companies may have been planning large price reductions as drugs come off patent, and these can be used to offset smaller or no reductions in the price of newer drugs.
The health departments estimated that the agreement would save the NHS ?70m ($690m; �530m) each year, totalling ?.8bn over the next five years. It said that this money would be channelled back into NHS services provided by local primary care trusts.
The new agreement also provides for a 5% increase in the allowance to manufacturers for research and development, from 23% to 28% of NHS sales, with financial incentives for the introduction of innovative treatments, including those for children.
The health secretary, John Reid, announcing the deal said: "The NHS in England spends around ?1bn on medicines each year. It is vital that this money is spent wisely and that we get good value for money. This new deal is a win-win. It is good value for money for the NHS and the taxpayer and it is good for the industry because it provides an incentive for research and innovation."
The industry considered that the price cut had been "imposed." Vincent Lawton, president of the industry association, said: "The price cut is unnecessary given the fact that medicine prices have fallen in real terms by some 15% over the past 10 years, and that the NHS抯 medicines budget is remaining steady at about 12% of expenditure." However, he welcomed the increased allowance for research and development.
Dr Ike Iheanacho, editor of the Drug and Therapeutics Bulletin, said: "The PPRS is a complex system. The 7% price cut is a saving to the NHS but it does not mean that pharmaceutical companies will make 7% less in real money terms. They will claw the money back in other ways ?with increased allowances for research and development." He added that overall prices of medicines in the United Kingdom were somewhere in the middle of the price range for different European countries.(London Susan Mayor)
The deal has been agreed as part of the pharmaceutical price regulation scheme, a voluntary agreement between the association and the four health departments in England, Scotland, Wales, and Northern Ireland that limits the price of branded, prescription only drugs prescribed on the NHS.
It allows drug companies complete freedom to set the price of new drugs launched in the UK market but sets a target rate of return on capital, and allowances for expenditure on research and development and marketing. Companies that exceed the level of profit allowed under the scheme are required to repay the excess. The scheme is unusual because it caps profits on sales to the NHS, while most other health systems limit the prices of individual drugs. It is renegotiated every five years, and the new pricing scheme starts on 1 January 2005.
Under the new agreement manufacturers will be able to decide which drugs to reduce in price to achieve an overall price reduction of 7% in sales to the NHS. In some cases companies may have been planning large price reductions as drugs come off patent, and these can be used to offset smaller or no reductions in the price of newer drugs.
The health departments estimated that the agreement would save the NHS ?70m ($690m; �530m) each year, totalling ?.8bn over the next five years. It said that this money would be channelled back into NHS services provided by local primary care trusts.
The new agreement also provides for a 5% increase in the allowance to manufacturers for research and development, from 23% to 28% of NHS sales, with financial incentives for the introduction of innovative treatments, including those for children.
The health secretary, John Reid, announcing the deal said: "The NHS in England spends around ?1bn on medicines each year. It is vital that this money is spent wisely and that we get good value for money. This new deal is a win-win. It is good value for money for the NHS and the taxpayer and it is good for the industry because it provides an incentive for research and innovation."
The industry considered that the price cut had been "imposed." Vincent Lawton, president of the industry association, said: "The price cut is unnecessary given the fact that medicine prices have fallen in real terms by some 15% over the past 10 years, and that the NHS抯 medicines budget is remaining steady at about 12% of expenditure." However, he welcomed the increased allowance for research and development.
Dr Ike Iheanacho, editor of the Drug and Therapeutics Bulletin, said: "The PPRS is a complex system. The 7% price cut is a saving to the NHS but it does not mean that pharmaceutical companies will make 7% less in real money terms. They will claw the money back in other ways ?with increased allowances for research and development." He added that overall prices of medicines in the United Kingdom were somewhere in the middle of the price range for different European countries.(London Susan Mayor)