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Latest UK Rebate Rate Pushes Profit Out Of Portfolios

BGMA ‘Gravely Concerned’ As Government Announces That 2023 VPAS Rate Will Be 26.5%

 
• By Dave Wallace

The UK government’s announcement of a 26.5% VPAS rate for 2023 “will make some products lossmaking,” the BGMA has cautioned, expressing serious concerns for the branded generics and biosimilars sector as it points to the risk of shortages, higher prices and fewer launches in the UK.

Profit loss dial
UK suppliers will struggle to keep products profitable under the new VPAS rate, the BGMA has warned • Source: Shutterstock

A newly-revealed rebate rate that will apply to UK branded generics and biosimilars suppliers in 2023 threatens to push products out of the market by making them unprofitable, the British Generic Manufacturers Association has warned, raising the potential for shortages, higher prices due to reduced competition, and a reduction in new launches in the UK market.

The Voluntary Scheme for Branded Medicines Pricing and Access, or VPAS, was introduced in 2019 and aims to limit National Health Service spending growth for branded medicines to no more than 2%

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