UK's PPRS negotiations hit by patent issue

The re-negotiation of the UK's Pharmaceutical Price Regulation Scheme has been hampered by concerns over the status of products which have lost patent protection. Already, the Association of the British Pharmaceutical Industry has seen one of its members, the UK unit of the Netherlands based specialty drugmaker, Norgine, resign over the issue (Marketletter October 13).

The Department of Health, in a joint statement with the ABPI, "concluded it will be necessary for it [the DoH] to undertake a public consultation on how these provisions would apply to the individual products that would be affected." As a result of this, the new PPRS arrangements will take effect on January 2009, except for changes to medicines that are off patent. The statement also informed PPRS scheme members that "companies will be required to reduce prices of post [loss of exclusivity] branded medicines where there are equivalent generics available to a maximum of 1.5 times the reimbursement price of the equivalent generic listed in the Drug Tariff from 1st January 2009."

Norgine's chief operating officer, Peter Martin, expressed the firm's satisfaction with the turn of events. He said: "Norgine is pleased that these ill-conceived proposals have been delayed for proper consultation. I believe they create a policy which is contrary to the interests of the ABPI's members."