Norgine quits UK's ABPI over PPRS deal

The UK unit of the Netherlands-based Norgine, a specialty drugmaker, has announced its resignation from the Association of the British Pharmaceutical Industry, citing the outcome of recent negotiations over the future of the Pharmaceutical Price Regulation Scheme as the basis for its decision to do so.

Peter Martin, Norgine's chief operating officer, told the Marketletter that the ABPI's agenda has become driven by the interests of its larger members, due to their reliance on the blockbuster drug model, which he argued is the defense of "me-too" patents. Innovative firms' interests were "sacrificed" in negotiations between the ABPI and the UK's Department of Health (Marketletters passim).

Responding to Norgine's decision to leave the ABPI, Richard Barker, the trade body's director general, said: "we regret the decision of Norgine to resign from the ABPI. Throughout the PPRS negotiations, there has been a very full and open consultative process which has won wide appreciation from large and small companies alike." Dr Barker added that "the ABPI has worked closely with smaller companies and their individual trade associations and, as a result of this focus, we have won significant concessions for smaller companies. For instance, they will be insulated from the price cuts imposed as part of the PPRS. Companies with less than L5.0 million [$9.0 million] turnover in 2007 will be completely exempt from the 3.9% cut and, for those with less than L25.0 million turnover, their first L5.0 million will be exempt."