UK govt tears up price deal with drug industry

The UK's Department of Health has issued a six-month notice of termination for the Pharmaceutical Price Regulation System, effective September 1. A spokesperson for the DoH said: "the Department of Health and the Association of the British Pharmaceutical Industry wish to clarify that, while negotiations on a potential new PPRS agreement have begun, neither party is commenting on any speculation on the content of these negotiations."

Both sides agree on basis for new deal

She added that "the government considers that six months' notice has to be given as part of these negotiations and moving towards a new agreement. The parties have agreed that the Government's four principles in response to the 2007 Office of Fair Trading report will be the basis of any new agreement." These are: value for money; reward for innovation; accelerated uptake of new medicines; and sustainability. The government insisted that "both sides are seeking to agree a new voluntary PPRS."