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Pharmaceutical Price Regulation Scheme information


The Pharmaceutical Price Regulation Scheme (PPRS) is the mechanism used by the UK Department of Health to ensure that the NHS has access to good quality branded medicines at reasonable prices. It involves a non-contractual agreement between the UK Department of Health and The Association of the British Pharmaceutical Industry (ABPI). The scheme applies to all branded, licensed medicines available on the NHS. The purpose of the scheme is to achieve a balance between reasonable prices for the NHS and a fair return for the pharmaceutical industry.

The current PPRS scheme, using a value-based pricing mechanism, came into effect on 1 January 2014, to run for no less than five years.[1] It replaced an earlier scheme running from 2009 to 2013.[2]

In December 2014 Hoffmann-La Roche successfully appealed against a decision of the National Institute for Health and Care Excellence appraisal committee in respect of Kadcyla on the basis that it should have considered that under the scheme, the industry had agreed to cap growth in the drugs bill to 0–1.9% a year for the next five years. Roche said this had "fundamentally changed" the nature of how NICE should consider cost effectiveness.[3]

On 23 August 2017, the UK Government launched a consultation relating to the PPRS, following legislation that was recently passed.

  1. ^ "Pharmaceutical price regulation scheme 2014 - GOV.UK". www.gov.uk. Retrieved 4 March 2017.
  2. ^ Department of Health The Pharmaceutical Price Regulation Scheme 2009
  3. ^ "Appeal finds NICE decision on £90k breast cancer drug 'unfair'". Health Service Journal. 16 December 2015. Retrieved 11 January 2015.

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