Pharma’s plea for better NHS deal is ‘unaffordable’

The NHS cannot afford to give drug makers a better deal on prices, the Government has said.

Pharmaceutical chiefs are to enter talks with the Health Department over what level the NHS sales levy should be set at next year, amid mounting warnings that the current level is unsustainable for the sector.

Under the NHS sales levy scheme, drug manufacturers face a charge if the NHS’S branded medicines bill rises by more than 2pc annually. This total bill is to balloon to £3.3bn this year, compared to £563m in 2021, owing to Covid. The higher drugs bill for the NHS during the pandemic meant the levy went from between 5pc and 10pc, to 26.5pc. The industry is suggesting a fixed rebate rate of 6.88pc.