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UK Industry Lambasts Government For High Rebates In Proposed New Statutory Pricing Scheme

 
• By Eliza Slawther

Proposed changes to the UK statutory pricing scheme from 2024 would see a slight drop in the rebate rate compared with that applied to drug sales this year, but the ABPI warns that the clawbacks planned are still much too high and that the move could undermine talks on a new voluntary scheme.

DrugPricing
• Source: Shutterstock

The UK’s Department for Health and Social Care opened a consultation on 18 July proposing significant reforms to its statutory drug pricing scheme for the next three years. The statutory scheme sets the rebate rates that pharmaceutical companies pay on sales of branded medicines to the National Health Service if they are not part of its voluntary scheme counterpart, VPAS.

While the proposal will see the allowed growth rate in net sales rise from 1.1% to 2%, which in turn will lead to the rebate rate falling from its current high of 27

Key Takeaways

  • The UK government has announced plans to overhaul the statutory scheme from 2024-2026, which could see clawback rates of at least 21.7%.

  • The ABPI has criticized the proposals and said they risk undermining ongoing VPAS negotiations.

  • The new framework could see an approach adopted where older medicines are subject to much higher rebate rates to supplement lower rates for newer products in more competitive markets

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