The deadline for companies to give notice on their intention to leave the voluntary scheme for branded medicines pricing, access, and growth is now 16 December. 

The stalemate about the pricing of drugs in the UK continues as the Association of the British Pharmaceutical Industry and the government have agreed to a further extension to the deadline by which companies must give notice if they intend to leave the 2024 voluntary scheme for branded medicines pricing, access and growth (VPAG).

As Healthcare Today reported recently, the ABPI has the low and outdated cost-effectiveness thresholds used by the National Institute for Health and Care Excellence (NICE) in its sights and to reduce what it sees as the UK’s “high and unpredictable” branded medicines revenue rebate rates to single digits, as is the case in other similar European countries.

It currently stands at 22.9%

The organisation says that NICE’s baseline cost-effectiveness threshold has remained unchanged for more than 20 years, which means that what the UK is willing to pay for new medicines which provably improve a human life has almost halved (47%) since 1999.

The ABPI has long campaigned against this payment rate. 

More time and better information

The revised deadline for submitting notice to leave the VPAG scheme is now 16 December 2025, having previously been extended to 14 November.

This change has been agreed to give companies more time and better information to help them make decisions in the context of ongoing global uncertainty affecting the life sciences sector.

If a company signals its intent to leave VPAG at any time before the new 16 December date, it cannot change its mind. Once this date has passed, any companies that did not give notice to leave must remain in the scheme for all of next year. If companies choose to leave the VPAG, they will be subject to the statutory scheme for branded medicines.

A similar extension was implemented in 2024 in response to the planned timing for the publication of the statutory scheme consultation response. However, this further change to this year’s deadline should be considered entirely separate and does not affect future years of VPAG.