UK government and ABPI agree drug pricing deal

The UK government and pharmaceutical companies this morning announced a new five-year, multi-billion pricing deal that will introduce a fixed limit on National Health Service (NHS) spend on branded medicines for the first time ever with all additional expenditure above this level paid for by industry.

The new pricing deal was reached through negotiations between the Department of Health and the Association of the British Pharmaceutical Industry (ABPI) on the Pharmaceutical Price Regulation Scheme (PPRS). This is a voluntary scheme which is usually negotiated every five years. The breakthrough deal will allow the NHS to increase the availability and use of the best branded medicines and most innovative treatments without risking a spiralling bill for the taxpayer, according to the Ministry of Health.

NHS spend to remain flat for two year, followed by less than 2% rise in next three years