Guidance

Pharmaceutical price regulation scheme 2014

A 5-year voluntary scheme agreed between government and the Association of the British Pharmaceutical Industry effective from 1 January 2014.

Detail

The 2014 Pharmaceutical Price Regulation Scheme (PPRS) will provide assurance on almost all of the branded medicines bill for the NHS. The bill will stay flat over the first 2 years of the scheme and will grow slowly after that. The industry will make payments to the Department of Health (DH) if NHS spending on branded medicines exceeds the allowed growth rate.

The PPRS is a voluntary agreement to control the prices of branded drugs sold to the NHS. It is negotiated between DH, acting on behalf of the UK government and Northern Ireland, and the branded pharmaceutical industry, represented by the ABPI.

The ABPI and DH agreed in August 2015 to amend the 2014 Pharmaceutical Price Regulation Scheme (PPRS) to clarify the way in which spending under the Cancer Drugs Fund is treated by the Scheme.

Under the agreement, the Department and the ABPI sought to protect the interests of all NHS patients, including patients who benefit from the Cancer Drugs Fund, while recognising the need to clarify Cancer Drugs Fund spending within the PPRS.

The parties have now agreed to a further technical amendment, which does not alter the agreed amounts of CDF spend which will be subject to the PPRS Payments System. It is aimed at securing greater stability and predictability in payment percentages for the duration of the Scheme.