NHS :: UK Dept of Health to reopen negotiations on the PPRS

UK Health dept intends to re-open negotiations about the current Pharmaceutical Price Regulation Scheme (PPRS). A UK Dept of Health spokesperson said

“The Secretary of State meets representatives of the pharmaceutical industry on a regular basis. At their most recent meeting, he advised that the department intends to re-open negotiations about the current Pharmaceutical Price Regulation Scheme (PPRS). Whilst we recognise the benefits that PPRS agreements have brought to the UK over the past 50 years, ministers believe it important to update the system so it is fit for purpose in the modern world and contributes to achieving greater efficiency in NHS expenditure.

“Since we last negotiated an agreement in 2004, the Office of Fair Trading has published its report on the PPRS, which concluded that the scheme should be reformed. The OFT Report concluded that the pricing system should have a more value-based approach in order to deliver greater benefit to patients. The OFT said reform could deliver better value for money for the NHS. The Secretary of State has therefore decided that it is timely to enter into a dialogue with the industry to renegotiate the PPRS. The Government today is also publishing its interim response to the OFT market study on PPRS.

“Any new agreement will recognise the contribution of the pharmaceutical industry to the UK economy through the provision of healthcare and the development of medical advances. It is in all our interests to encourage research and reward innovation, but above all we want to ensure that the taxpayer gets value for money and patients continue to benefit from innovative products at a reasonable price.”


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