UK government seeking price cuts of up to 20% for some drugs
The UK government is consulting on proposals to cut prices of some branded drugs by up to 20%, which could also affect negotiations on a new voluntary agreement covering other branded drugs, according to a Thursday announcement.
The Department of Health said it was consulting on a new statutory pricing scheme for branded drugs not covered by the voluntary Pharmaceutical Price Regulation Scheme (PPRS), which caps pharma profits based partly on local R&D spend and is being renegotiated with the industry's trade body.
The proposals, which according to the Association of the British Pharmaceutical Industry (ABPI) estimates will apply to around 10% of UK medicines, do not cover generics or unprescribed branded products available over the counter.
According to the DoH, the suggested price cuts for branded medicines covered by the statutory scheme used for non-PPRS members will be either 10%, 15%, or 20%.
The new scheme is due to come into force on January 1, the same time as the new PPRS and the proposed value-based pricing scheme for new drugs.