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news.The pharmaceutical price regulation scheme or PPRS, which has played a key role in the profits secured by the pharma companies from their sales to the National Health Service, is to be scrapped, according to PJB news.
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The department of health (DoH) has informed the Association of the British Pharmaceutical Industry that it is giving six months’s notice to end the PPRS, as it is allowed to do under the voluntary agreement. The DoH’s notice came as no surprise after the department indicated that it wanted to renegotiate the current five-year PPRS at its mid-term stage, which ends later this year.
The replacement for the PPRS is expected to be different, and may uphold four principles – value for money, rewards for innovation, the accelerated uptake of new medicines and sustainability. According to the government there were several discrepancies in the PPRS and £500 million could be saved annually only if changes were made to pricing. The government is more likely to embark on a value-pricing model that may take into account the therapeutic value of the products.