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Pharmaceutical industry criticises government

01/05/2008

The outgoing president of the Association of the British Pharmaceutical Industry (ABPI) has criticised the government for bringing forward its review of UK drug price controls.

The government originally planned to review the UK pharmaceutical price regulation scheme (PPRS) in 2010 but has since brought it forward by two years.

The scheme restricts the ability of drug companies to increase the price of their treatments for the NHS and aims to ensure value for money for the health service.

But ABPI president Nigel Brooksby said the decision has damaged the pharmaceutical industry's relationship with the government.

Mr Brooksby said: "The government's decision dented business confidence and the reaction from our global head offices moved the matter beyond the UK, as they began to question the integrity of the UK investment environment."

The ABPI has published a report emphasising the importance of the pharmaceutical industry to the UK economy.

According to the report, sales of medicines accounted for just 9.2 per cent of NHS costs in 2007 and cost just 46p per person per day.

The report also points out that UK-based pharmaceutical companies carry out around a quarter of all business research and development in the country and spend more than a third of their NHS revenues on R&D.

Mr Brooksby added: "We are committed to working with the government to retain leadership in the UK; provide value for money; encourage and reward innovation; assist in the uptake of new medicines and, importantly, help restore industry confidence through predictability, stability and sustainability."

Commenting on the report, a Department of Health spokesperson said: "The Department of Health and the (ABPI) wish to clarify that, while negotiations on a potential new PPRS agreement have begun, neither party is commenting on any speculation on the content of these negotiations.

"The government considers that six months' notice has to be given as part of these negotiations and moving towards a new agreement.

"The parties have agreed that the government’s four principles in response to the 2007 OFT report will be the basis of any new agreement: value for money; reward for innovation; accelerated uptake of new medicines; and sustainability.

"Both sides are seeking to agree a new voluntary PPRS."