UK to cut price of branded drugs outside of voluntary pricing scheme by 15%
Companies who choose not to participate in the UK's voluntary PPRS drug pricing scheme will see the prices of their medicines cut by 15% from January, according to a government announcement on Wednesday.
In a statement, the Department of Health said it had made the decision following a consultation that began in June, which had proposed price cuts as high as 20% to drugs covered by the statutory scheme.
The DH said in its response to the consultation it has exempted small business with up to five million pounds in National Health Service (NHS) sales, although it had not been prepared to fund exemptions for companies with NHS sales between five million pounds and 25 million pounds.
According to the Association of the British Pharmaceutical Industry (ABPI), around 10% of branded medicines are priced using the statutory scheme.
Sources have told that APM that the statutory scheme will be included in the spending ceiling of around 11 billion pounds announced earlier today under the new Pharmaceutical Price Regulation Scheme (PPRS).
ABPI chief executive, Stephen Whitehead, said in a statement he was "disappointed" in the 15% cut and intimated more could be to come.
"The ABPI is concerned about the impact of potential future changes to the statutory scheme, which the government could introduce at any time," he added.
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