Healthy Skepticism Library item: 11511

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

Burnand A.
Misconceptions about PPRS
BMJ 2007 Sep 22; 335:(7620):578
http://www.bmj.com/cgi/content/short/335/7620/578?etoc

Abstract:

Iheanacho argues that the Office of Fair Trading may have pinpointed some areas of improvement in the existing Pharmaceutical Price Regulation Scheme (PPRS).1 However, its proposals for introducing a value based system of drug pricing are inherently flawed and, if implemented, would lead to a significant erosion of biopharmaceutical investment in the UK.

It is not true that “other countries have long been able to design, implement, and benefit from effective methods of value based pricing.” Many European countries base their pricing on international reference pricing where the UK’s pricing has a central role. In Germany therapeutic reference pricing is used, which has led to a severe erosion of that country’s research and development over the past decade. In Australia, which has been put forward as an example of value based pricing, the authorities have now decided to overhaul the system and drop their approaches to value based pricing.

What . . .

kmurphy@bioindustry.org