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Detail of outcome
The Department of Health received 51 formal responses from a variety of organisations including the pharmaceutical industry, patient groups, NHS organisations and charities.
After considering the responses, the government has decided that option 2a, introducing a payment mechanism applicable to new as well as old products, is the best option.
The government will amend the National Health Service Act 2006 to put beyond doubt that the Secretary of State has the power to require a payment mechanism in the statutory scheme to limit the cost of health service medicines.
Following the passage of legislation through Parliament, the government intends to carry out a further consultation on the operation of the proposed payment mechanism, and the level of payment percentage.
We are seeking views on proposals to reform the statutory scheme that controls prices of branded health service medicines to make it work more effectively, and to re-align the statutory scheme savings with the savings made by the voluntary Pharmaceutical Price Regulation Scheme (PPRS).
The consultation sets out a number of options:
- option 1: a further cut in the maximum price of products in the statutory scheme
- option 1a: a further cut in the maximum price of products in the statutory scheme including new products
- option 2: a percentage payment by companies replacing the existing price cut
- option 2a: a percentage payment by companies including new products
The PPRS is negotiated between the government and the pharmaceutical industry to control the prices of branded drugs sold to the NHS. It seeks to achieve good value for money for the NHS, and a fair return for the industry to enable it to research, develop and market new and improved medicines. The statutory scheme covers those companies that decide not to join, or withdraw from, the PPRS.