British pharma industry makes $315 million payment to underwrite medicines bill growth

The UK pharmaceutical industry has made a payment of £207 million ($315 million) to underwrite the growth of the medicines bill for the first quarter of 2015.

The payment, announced by the Association of the British Pharmaceutical Industry and the UK’s Department of Health, comes under the 2014 Pharmaceutical Price Regulation Scheme (PPRS). The growth rate of branded medicines covered under the scheme for the last six months stood at 3.03%, which is lower than the original forecast rate of 3.52%.

Alison Clough, acting chief executive and executive director of commercial, UK, for the ABPI, said: “Today’s announcement once again demonstrates industry’s commitment to supporting the NHS in a time of austerity and reinforces the unique opportunity that the PPRS  provides government and the NHS to offer patients access to newer, innovative medicines at minimal additional cost. During 2014 industry paid a total of £310 million to the Department of Health under the PPRS and it is anticipating payments in excess of £800 million for 2015. The Department has announced that the NHS has received £796 million of these expected payments in its budget for this financial year. The NHS needs to ensure that this money allows clinicians to prescribe the medicines that they believe are right for their patients without undue focus on cost. This is currently not happening."