Consultation outcome

Pricing of branded health service medicines

• From: Department of Health and Social Care
• Published: 10 September 2015
• Last updated: 15 September 2016 — See all updates

This was published under the 2015 to 2016 Cameron Conservative government

This consultation has concluded

Read the full outcome

Changes to the statutory scheme to control the prices of branded health service medicines: consultation response

PDF, 333 KB, 16 pages

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.

See information on the Health Service Medical Supplies (Costs) Bill.

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.

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Original consultation

Summary

Seeks views on proposals to change to how prices of branded NHS medicines are determined and re-align savings alongside PPRS.

This consultation ran from
2pm on 10 September 2015 to 11:45pm on 4 December 2015

Consultation description

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.

Documents

Changes to the statutory scheme to control the prices of branded health service medicines

PDF, 474 KB, 30 pages

Changes to the statutory scheme to control the prices of branded health service medicines: executive summary

PDF, 139 KB, 4 pages

Impact assessment

PDF, 667 KB, 29 pages

Published 10 September 2015
Last updated 15 September 2016 + show all updates

1. 15 September 2016

   Consultation outcome added.

2. 10 September 2015

   Added impact assessment

3. 10 September 2015

   First published.