Healthy Skepticism Library item: 11154

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: Journal Article

Timmins N.
Government pushes ahead with plan for cheaper drugs deal for NHS
BMJ 2007 Aug 11; 335:(7614):273
http://www.bmj.com/cgi/content/full/335/7614/273

Abstract:

Ministers want to switch the way the NHS pays for the £8bn (12bn; $16bn) worth of branded drugs that it buys each year. They want to move to a system in which drug prices are based on the benefits they bring to patients-and it seems they want to do so quickly.

The radical move comes after a report from the Office of Fair Trading (OFT) in February that recommended such a shift from 2010, when the current 50 year old pharmaceutical price regulation scheme (PPRS) becomes due for its five yearly renewal (BMJ 2007;334:383 doi: 10.1136/bmj.39133.543438.DB) .

The industry had been expecting a response but not last week’s announcement that ministers want a renegotiation now.

A “value based” scheme would aim to allow higher prices for drugs that are more effective-a move that the OFT argues would stimulate innovation. Lower prices would be paid for more marginal . . .