1. Pink Sheet
  2. >>Geography

Two Big Pharma Firms Quit UK Pricing Scheme In Protest Over High Levies

 
• By Ian Schofield

Lilly says the current voluntary drug pricing and access scheme has harmed innovation and left the UK a “global outlier” among major countries, while AbbVie asserts that this year’s repayment rate of 26.5% will impair its ability to operate sustainably in the country. The industry body, the ABPI, says it will come up with proposals for a “completely new settlement” in the coming months.

Blue & Orange drug medicine pills colored capsules closeup with pound coin on white background
Pharma firms have concerns over the current voluntary drug pricing scheme • Source: Shutterstock

Fears that spiralling repayment rates might lead some pharmaceutical companies to leave the UK's Voluntary Scheme for Branded Medicines Pricing and Access (VPAS) have been borne out after Lilly and AbbVie said they could no longer continue as members of the scheme.

The moves, announced today, follow the government’s decision last month to increase repayments under the VPAS to 26.5% of revenues, compared with 15% for 2022 and 5.1% in 2021. This led a number of companies, including Bayer, Eisai, Gilead Sciences, MSD, Novo Nordisk and Sanofi, to endorse warnings from the Association of the British Pharmaceutical Industry that the “extreme revenue clawback” meant firms would invest less in the UK and launch fewer new drugs there

Read the full article – start your free trial today!

Join thousands of industry professionals who rely on Pink Sheet for daily insights

  • Start your 7-day free trial
  • Explore trusted news, analysis, and insights
  • Access comprehensive global coverage
  • Enjoy instant access – no credit card required
Start Free Trial

Already a subscriber?

More from Europe

More from Geography