Transparency data

12 August 2025 minutes

Published 31 July 2026

Meeting details

This meeting was held on 12 August 2025 from 10:30am to 12:30pm in the conference rooms at the Association of the British Pharmaceutical Industry (ABPI) office (Hay’s Galleria) and on Microsoft Teams.

The chair was David Simmons.

Minutes were taken by Michael Vidal.

Attendees

From the Department of Health and Social Care (DHSC):

• David Simmons
• Noah Kidron-Style
• Bilal Evans
• Abigail Bishop-Laggett
• Richard Mattison
• Simon Roer
• Alison Hardaker
• David Barley
• Ishi Shrivastava
• Simon Gillespie

From NHS England:

• Jack Turner
• Rosie Marler

From ABPI:

• Kim Assender
• David Watson
• Nico Reynders
• Roz Bekker
• Janet Valentine
• Victoria Jordan
• Joe Edwards
• Pinchas Kahtan

From the devolved governments:

• Alison Strath (Scotland)

Representatives from the other devolved governments did not attend.

From the Office for Life Sciences (OLS):

• Rory McFarlane

From the National Institute for Health and Care Excellence (NICE):

• Jeanette Kusel
• Aaron Dunphy

From Medicines UK:

• Mark Samuels (observer)

From the Ethical Medicines Industry Group (EMIG):

• Leslie Galloway (observer)

From the BioIndustry Association (BIA):

• Rosie Lindup (observer)

Introductory remarks

David Simmons (DS), Interim Deputy Director of Medicines at DHSC, and chair, opened the third operational review of the 2024 voluntary scheme for branded medicines pricing, access and growth (VPAG). He summarised significant developments in the scheme’s first 18 months, including a change of government and NHS England’s return to DHSC.

DS reiterated the government’s commitment to supporting the life sciences sector through the Life Sciences Sector Plan and 10 Year Health Plan, stressing public-private collaboration to enhance NHS medicines access and industry innovation in the UK.

He clarified that, while the accelerated review is still in progress, this meeting is focused solely on overseeing VPAG’s current operations, with only a brief update on the accelerated review.

Minutes of the last meeting

The minutes from 15 November 2024 were approved. Noah Kidron-Style (NKS) confirmed changes to portfolio-wide financial assessment requirements for price increases. These changes mean that no product portfolio-wide PIFR is needed for a company’s first application each year. However, DHSC may request one for subsequent applications in addition to wider portfolio information, if required. This gives companies more flexibility and supports product-specific assessments.

Kim Assender (KA) said ABPI and DHSC are finalising the consequences of the older product approach (COOPA) survey questions and evidence requirements on border medicines. An update will be provided at the next review.

Readout of accelerated VPAG review

DHSC, NHS England and ABPI launched a spring review focused on payment rates for newer medicines and impacts on UK suppliers. Workshops ended in June 2025, but geopolitical developments have delayed conclusions. The review remains pending but a conclusion is expected shortly, subject to complexity and all parties’ input.

Nico Reynders (NR) thanked NKS and the team, emphasising continued industry-government collaboration to make the UK an attractive commercial hub for innovation, patients and growth. He said both sides remain committed to a positive outcome.

NR flagged progress in US-UK trade talks and urged stronger innovation and research and development (R&D) by 2030, noting decisions are needed now and must align with budget cycles (including whether to remain in VPAG by 30 September 2025).

NR said the 2035 ambitions of the Life Sciences Sector Plan needed clearer milestones to assess near- and mid-term impacts. He suggested interim targets (for example, by 2027) and analysis of short-term effects, particularly for 2026 to 2027, and asked that communication remain open whatever the ABPI board decides.

NKS reiterated government intent to increase net spending on innovative medicines through the Life Sciences Sector Plan and NHS 10 Year Plan, stressing collaboration and the review process. He referenced the US-UK Economic Prosperity Deal’s aim to improve the UK medicines environment and said sustained effort is needed to meet 2035 Life Sciences Sector Plan ambitions.

NKS noted growth is variable and proposed working with ABPI to keep data visible, using annual reviews to track progress without overreacting to year‑on‑year changes.

Roz Bekker (RB) supported interim targets, calling for industry and government to agree meaningful milestones through ongoing discussion to 2035, reflecting policy shifts, medicine value, access and uptake. She asked for greater clarity and steady year‑on‑year improvement.

VPAG objective 1: NHS financial sustainability

Scheme metrics and data

Ishi Shrivastava updated the metrics pack following the last review actions, including formatting improvements, fuller older and/or newer medicines data, metric refinements (including NICE appraisal speed), and added OLS data on investment and UK growth.

A 15 July pre‑meeting focused on newer medicines where strong 2024 growth did not repeat in 2025 and on further improvements for the next metrics pack.

New active substance sales in the voluntary scheme fell by £36 million quarter‑on‑quarter - market share is down 2 percentage points from the 2022 peak (95%). Membership increased, mainly among smaller companies.

For the first time, sales are split across schemes by newer versus older medicines. Sales after payments have declined since the Q3 2020 peak, while voluntary scheme payments have risen in recent quarters.

Exceptional pricing treatment has been steady for 4 quarters - since October 2024, 17 applications have been completed and 6 are ongoing.

Overview of the operation of the scheme

Richard Mattison (RM) provided operational updates, noting ongoing work on the branded medicines portal. This includes a new presentation-level report (PLR) consolidation report that presents top-up payment percentages and outstanding payments at presentation level. An upcoming update will add VPAG investment programme data and a revised payment report will consolidate related information.

RM also announced an independent audit template for companies to submit Q2 to Q4 2024 sales reports, covering the start of the older medicines mechanism. The template, based on the PLR report, is intended to be more user-friendly and was introduced to companies in early August.

Companies have been informed about the scheme’s audit requirements, including a simplified agreed-upon processes audit requested by DHSC. Although discussed with ABPI earlier this year, it will not be required in 2024 due to scheduling constraints. From 2025 the PLR will follow a set process.

RM noted that the team is facing a high volume of requests for price increases and exemptions, which is challenging. Applications are assessed using criteria such as economic supply, patient impact, NHS costs and award duration. To enhance transparency and competition, first-time applications will not require a portfolio-wide PIFR, making the process easier for companies. This update will be communicated to those requesting price exemptions.

The final end of reconciliation under the voluntary scheme for branded medicines pricing and access (VPAS) is imminent and companies must provide outstanding reports for 2023, including some from 2021, as they are crucial for the final end of the scheme reconciliation.

RM confirmed that 2 ongoing disputes - one from Haleon contesting its VPAG membership and another from B. Braun regarding exceptional central procurements - have been heard and published, with the department’s decision in favour of each company.

PLR submissions are essential for the voluntary scheme, with the deadline at the end of March each year for the previous calendar year. About 3% of companies have not submitted their 2024 PLR. Some had technical difficulties caused by altering the automated template, but this has now been fixed. Inaccurate sales unit figures have also been found - currently, 8% of companies have resubmitted their PLR up to 20 times, creating extra work for DHSC and the companies involved.

ABPI was keen to understand top-up payment distributions and how the older medicines mechanism operates at an aggregate level, to assess whether it meets the objectives set out in the VPAG agreement.

Action: DHSC to publish data on top-up payments once Q2 data is aggregated.

Delivery of the price erosion mechanism (DHSC operations)

Simon Roer (SR) summarised reference pricing work, including handling initial and final 2024 prices and the process for corrections in future years.

Work continues on products moving from ‘new’ to ‘older’ status and on 2025 launches - phase 2 resolved about 140 queries from 100 companies.

SR said provisional reference prices are available for products not yet on the dictionary of medicines and devices (dm+d) - around 34 presentations have received provisional pricing.

The team is formalising processes for originator-licensee relationships and improving the portal (better originator data, new functions, alerts and NHS Business Services Authority collaboration), with clearer rationales for data requests.

KA raised concerns about accruing exemptions and the impact on medium-sized companies. RM said the new PLR report will show exemptions at presentation level.

KA asked for earlier guidance and clearer timelines for medicines becoming ‘older’. SR acknowledged complexities but agreed on the need for clearer, more proactive comms.

Action: DHSC operations to issue comms giving companies 6 months’ notice of changes to the ‘older medicines’ classification.

KA raised concerns about the accounting and planning challenges medium-sized companies face in tracking exemptions through the year, sometimes affecting product prioritisation.

RM confirmed that the new PLR consolidation report accounts for exemptions. Any changes to the process would have broader consequences for the NHS Business Services Authority portal and overall scheme.

Action: ABPI to provide suggested improvements to DHSC to build clarity on the medium-sized company exemption.

NKS advised that proposed changes be shared promptly, noting that while the department is receptive, it must consider wider impacts.

Chapter 3

Jack Turner (JT) welcomed improved NHS, industry and government partnership through bi‑monthly meetings on 20 focus areas, noting more pragmatic and open dialogue than in previous schemes.

JT highlighted key achievements this year:

• updated commercial framework (first explicit policy on indication‑based pricing)
• budget impact test threshold doubled (£20 million to £40 million)
• launched Medicines and Medical Device Access Initiative for national pipeline monitoring
• published end‑to‑end pathway guide from regulation to patient access
• completed VPAG‑funded health technology assessment (HTA) labs project and scoped future proposals with industry

JT said several projects (including commercial framework phase 2) are paused pending the accelerated mid-scheme review and sector plans. Immediate priorities include:

• horizon scanning
• piloting primary care pricing
• responding to the Most Favoured Nation order
• strengthening NICE-NHS alignment
• streamlining appraisals to support indication‑specific pricing

JT reaffirmed the importance of direct industry engagement in both policy development and implementation.

JT outlined plans for a national minimum data set for local formularies to enable consistent uptake tracking and support a future single national formulary.

Discussion covered likely changes in the local formulary landscape alongside data improvements. Alison Strath stressed focusing on patient benefit and outcomes, not just costs.

Industry reiterated frustration with the principle that added value for new indications should be delivered at or below the original price, despite cost-effectiveness evidence.

JT said this approach is longstanding and unlikely to change before the scheme ends but welcomed discussion on alternative value-sharing and strategic co-investment for phase 2.

The group agreed to prioritise robust evidence for new indications and mutually beneficial investment models.

Participants called for workshops with industry and ABPI to shape the scope of future consultation.

Victoria Jordan (VJ) highlighted the importance of global innovation funding, the limits of focusing only on high-range primary care prices and the need to address wider operating conditions in the economic prosperity deal.

JT agreed and noted these issues need to be carried through into practical delivery.

VJ queried the remit of the medical advice and practice steering group, suggesting the acronym and focus be clarified and the agenda broadened beyond horizon scanning to cross-border alignment and delivery of the Life Sciences Sector Plan.

She added that combining medicines and med tech can dilute discussion and suggested longer meetings or split sessions.

JT noted the group could become a ‘talking shop’ without clear deliverables and suggested a dedicated discussion with DHSC colleagues and the sponsor team.

Action: workshops and ongoing engagement with industry to define the scope and approach of commercial framework phase 2.

Investment programme update

Rory MacFarlane reported the programme is on track - 9 delivery partners, 19 funded workstreams, and newly agreed metrics for UK-wide clinical trials and manufacturing impact.

Clinical trials

Work is underway to cut commercial set‑up times to less than 150 days by March 2026 - 21 UK commercial research delivery centres (CRDCs) are co-ordinated (network chair to be appointed). A primary care call drew 38 applications from 43 eligible sites. Successful sites will be selected in the autumn.

Manufacturing

Twenty-nine innovation projects are supported through the Sustainable Medicines Manufacturing Innovation Programme - 14 collaborative R&D projects are underway. Fifteen Grand Challenge projects received seed funding to develop proposals - results are due in the autumn.

HTA

Twelve projects are in recruitment or governance. Programme funding is supporting digital implementation in Scotland and a planned access pathway publication in Northern Ireland.

ABPI said clinical trials funding deployment is on track, but workforce progress is limited. ABPI is awaiting a government response on its recommendations.

ABPI emphasised the shift from planning to delivery and proposed joint ABPI-UK government comms on programme value, timelines and deliverables. ABPI also asked for clearer tracker metrics and flexibility on NICE targets.

Medicines UK asked for a clearer R&D offer for biosimilars and alternative competition formats, noting biosimilar offers appear limited and referencing a member survey.

ABPI will discuss the manufacturing offer with Medicines UK offline. NHS England and OLS requested Medicines UK survey data. NICE noted an unfunded biosimilar workstream and asked for programme funding to continue it.

Actions:

• DHSC and NHS England to respond to industry recommendations on workforce (investment programme)
• ABPI and UK government to plan comms to demonstrate investment programme value, timings and key deliverables
• ABPI and Medicines UK to discuss the investment programme manufacturing offer
• Medicines UK to provide results of its member survey to NHS England and OLS

The team agreed to take several detailed conversations offline for further resolution.

Any other business

None.