ABPI and Department of Health announce second PPRS payment

The Association of the British Pharmaceutical Industry (ABPI) and the UK Department of Health have announced the  second payment of £76 million ($124 million) by industry to underwrite the growth of the medicines bill under the 2014 Pharmaceutical Price Regulation Scheme (PPRS).

This payment relates to the second quarter of 2014, with first year payments set at 3.74% of companies’ net sales. This is the midpoint of both the Department of Health and the ABPI medicines bill forecast, but in subsequent years payment will be corrected based on real-world growth.

The pharmaceutical industry has agreed to keep National Health Service expenditure on branded medicines in the scheme flat for two years, and within agreed controlled growth levels for a further three years, under the new five-year voluntary PPRS. Further expenditure by the NHS will be underwritten by industry, with agreed exclusions.