In common with many countries, the prices of medicines are regulated in the UK. As set out in the coalition agreement, the Government intends to introduce a new system of value-based pricing by reforming arrangements for the pricing of branded medicines. The Government intends to move to this system when the current Pharmaceutical Price Regulation Scheme (PPRS) expires at the end of 2013.
The purpose of value-based pricing is to improve NHS patients’ access to effective and innovative drugs by ensuring they are available at a price that reflects the value they bring. It will give patients and clinicians greater access to medicines, based on an assessment of the outcomes that they can achieve.
The Government's long-term vision for the future of the NHS in England was set out in the NHS White Paper, “Equity and Excellence: Liberating the NHS”. It sets out how the NHS will put patients first, focus on outcomes and empower clinicians. Medicines have an important role to play in delivering this vision.
This document sets out the principles that would underpin the move to value-based pricing, outlines how the new system could work across the UK and seeks views on a number of key issues. Based on the responses to this public consultation, the Department of Health will actively engage key stakeholders in developing the new system.
