Sick may suffer after drug firms pull out of NHS pricing scheme

NHS patients risk missing out on breakthrough drug treatments after two leading pharmaceutical companies pulled out of the UK’S official pricing scheme.

Eli Lilly and Abbvie have left the UK’S Voluntary Scheme for Branded Medicines Pricing and Access (VPAS) – a long-standing agreement designed to limit the cost of medicines for the NHS, while supporting industry innovation.

The scheme caps the NHS’S branded medicines bill, meaning all drug manufacturers face a charge if the bill rises by more than 2 per cent annually. The rate of that charge has risen rapidly in recent years as demand for NHS treatment has grown and, as of December, the rate hit 26.5 per cent.

Before the pandemic, the scheme, which was seen as a particularly important pro-innovation deal post-brexit, had a rate of around 5 per cent.

The industry body, the Association of the British Pharmaceutical Industry (ABPI), said the hike puts the UK “out of step” with global competitors.

It comes after the Government launched a 10-year Life Sciences Vision in 2021 to “accelerate the delivery of life-changing innovations to patients” and make the UK a “science superpower”. But pharmaceutical firms said the “punishing” charges are forcing them to reduce their research and development as well as their manufacturing investments in the UK.

ABPI said the rate and declining investment in the UK will affect patients’ access to new and innovative drugs. Eli Lilly and Abbvie are the first firms to leave the voluntary scheme due to the rate increase.

It’s understood that Will Quince, the minister for health, is holding talks with the industry to discuss the impact of VPAS. A Department of Health and Social Care spokesman said: “We are open to ideas about how the next scheme should operate, after the current one runs out and [we] will continue to engage with [the] industry to understand the impact on companies.”