Pressure from the Association of the British Pharmaceutical Industry has brought forward the review of the Voluntary Scheme for Branded Medicines Pricing, Access, and Growth to June.
A planned autumn review of the 2024 Voluntary Scheme for Branded Medicines Pricing, Access, and Growth (VPAG) will be brought forward to report back in June.
In 2023, the government and the pharmaceutical industry, led by the Association of the British Pharmaceutical Industry (ABPI) agreed to a deal to support the affordability of branded medicines for the NHS. The agreement aims to enable patients to access the latest treatments more consistently and boost the UK’s position as a global leader in advanced healthcare, technology, and clinical research.
When the scheme was agreed, it included a planned review of scheme terms in the autumn of 2025 to allow the government and industry to propose and implement necessary changes to ensure the scheme is delivering on its objectives.
In recognition of the government’s intention to publish both its 10-year plan for the NHS, and the Life Sciences Sector Plan as part of the broader industry strategy this summer, the government and industry have agreed to bring this review forward so it can be completed in June.
Shared concerns
The review will focus on addressing shared concerns across government and industry about the significantly higher-than-expected headline payment rate for newer medicines in the scheme to restore its predictability and sustainability.
As Healthcare Today has reported, the government is proposing to raise the Statutory Scheme payment rate for newer branded medicines from 15.5% to 32.2% of subject companies’ NHS sales in the second half of this year.
The average statutory scheme payment rate was 10.6% between 2019 and 2022, but in recent years, the payment rates required by the government have soared, hitting a historic peak in 2023 at 27.5%.
“Wes Streeting has made clear his determination to work with our industry to address existing commercial challenges while also setting out a bold vision to transform the way the health system values medical innovation,” said ABPI chief executive Richard Torbett.
“The first step is to address high and unpredictable medicine payment rates in June so we can then power forward to support the NHS 10-year plan and deliver the government’s upcoming life sciences strategy,” he continued.
