NPC Archive Item: Consultation on value-based pricing of branded medicines

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22 December 2010

The Department of Health is consulting on proposals for a new value-based system of pricing medicines which aims to give NHS patients better access to effective and innovative branded medicines. The consultation document sets out the principles that would underpin the move to value-based pricing, outlines how the new system could work across the UK and seeks views on a number of key issues.

Responses to the consultation can be provided by completing the response form and emailing it or posting it to:

Value Based Pricing, Helena Bowden – Consultation Coordinator

Department of Health
Skipton House
80 London Road

All responses to this public consultation must be received by 17 March 2011.

What happens after the consultation?
Following the consultation, the Department of Health will actively engage with key stakeholders to develop the new system. It is the intention that value-based pricing will replace the current Pharmaceutical Price Regulation Scheme (PPRS) when it expires at the end of 2013 and will apply to new active substances placed on the market from 1 January 2014. Like the PPRS, it is expected that value-based pricing arrangements will apply to branded, and not generic, medicines.

For branded medicines already covered by PPRS at the end of 2013, a successor scheme to the PPRS will be required. The details of this will be developed alongside value-based pricing. Subject to discussion with the pharmaceutical industry, some existing medicines could be included within the value-based pricing system.

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