Ministers have promised a medicines deal that will save the NHS £14 billion over five years, help reduce record waiting lists and provide faster access to cancer drugs and gene therapies.
The voluntary Pricing, Access and Growth Scheme for Branded Medicines (Vpag) has been agreed after months of negotiations between the Government, NHS England and the Association of British Pharmaceutical Industries (ABPI).
Officials say the deal will save billions of pounds more, which could be used to provide the best treatment and care for NHS patients, expand the workforce and reduce waiting lists – one of the Prime Minister’s five priorities.
All parties committed to testing new approaches to funding breakthrough advanced therapy medicines (ATMPs), such as personalized cancer treatments and life-saving “one-shot” gene therapies used to treat previously incurable diseases such as sickle cell disease.
Officials said this new approach to ATMP will build on the NHS’s experience in using its commercial capabilities to deliver breakthrough treatments for patients and deliver innovative access and drug delivery programmes.
Earlier this month, NHS England announced that by expanding and accelerating the use of anticoagulants, 4,000 deaths and an estimated 17,000 strokes had been prevented in the past 18 months.
Pharmaceutical companies have argued that the life sciences sector and industry-government relations will be hit by NHS charges on the sale of branded drugs under the current scheme, which is set to expire at the end of this year.
The Voluntary Pricing and Access to Branded Medicines Scheme (Vpas) was designed to reduce NHS drug costs and support innovation, but it has risen sharply due to increased demand and accumulated debt since the pandemic.
The collection has risen from around 5 percent in 2021 to 15 percent last year and will reach 26.5 percent, or about £3.3 billion, this year. Two major US pharmaceutical companies, AbbVie and Eli Lilly, abandoned the plan this year in protest.
The industry proposed a new Vpag agreement that it said would also support clinical research and patient access to new medicines, as well as improve productivity.
Officials said the new agreement will provide taxpayer-funded health care with savings that are twice as high as under the current drug pricing agreement. Allowed annual growth in brand-name drug sales will double from 2 percent in 2024 to 4 percent in 2027.
The agreement also introduces a new mechanism for the availability of old drugs. For old drugs that have not had a price reduction, a surcharge of up to 25 percent must be paid in addition to the basic old drug rate of 10 percent. Revenues from this mechanism will reduce payment rates for more innovative drugs.
An additional £400 million of investment in life sciences will accelerate work on clinical trials, manufacturing and health technology assessment, driving UK economic growth, collaboration and innovation in the sector.
Health and Social Care Secretary Victoria Atkins said: “Millions of NHS patients will benefit from this important deal in the UK.” the latest life-saving medicines and treatments.
“This agreement will also ensure the UK remains a world leader in innovative healthcare, while boosting our economy by investing hundreds of millions of pounds in vital research, clinical trials and manufacturing.”
Medicines represent the second largest percentage of NHS spending, amounting to £19.2 billion in England in 2022/2023. Of this, around £14bn was spent on branding, with the industry returning £2bn in rebates to the NHS this year.
However, this agreement sets an annual cap on the total allowable value of sales of branded medicines to the NHS. Sales above the upper limit are reimbursed to the government in the form of a fee.
The ABPI chief said the industry supported the new deal but called it “tough”. The group argued that under the old plan the UK would lose its share of global pharmaceutical research and development spending as the UK industry fell in global rankings based on its share of total investment.
ABPI chief executive Richard Torbett said: “This is a complex transaction that highlights the critical role that innovative medicines and vaccines will play in addressing the health challenges of the future.”
“The industry supports this agreement, despite its limitations, as it provides vital support to patients and the NHS and is committed to giving them access to the transformative treatments they need.
“Growing the sector faster than the previous plan is expected to improve the UK’s international competitiveness over time. Importantly, it also recognizes the urgent need to invest more in building the capacity of the NHS to work with industry on science and research to support innovation and economic growth.”
Source: I News
I’m Raymond Molina, a professional writer and journalist with over 5 years of experience in the media industry. I currently work for 24 News Reporters, where I write for the health section of their news website. In my role, I am responsible for researching and writing stories on current health trends and issues. My articles are often seen as thought-provoking pieces that provide valuable insight into the state of society’s wellbeing.