Value-Based Pricing (Consultation)

Thursday 16th December 2010 Written Statements

[The Secretary of State for Health (Mr Andrew Lansley)]

I am launching today a consultation entitled: “A new value-based approach to the pricing of branded medicines”.

The consultation document sets out this Government’s proposals for introducing a system of value-based pricing for medicines, as stated in the coalition agreement. Such a system would enable patients to access the medicines and treatments their doctor advises they need by establishing a closer link between the price of a new branded medicine and the value which it offers in terms of benefits to patients, reflecting unmet need, therapeutic innovation, and where appropriate, benefit to society.

While the current system of pricing medicines has tried to achieve a balance between reasonable prices for the NHS and fair return for the industry to develop new medicines, it does not promote innovation or patient access in the way that we are looking for. We have committed to honouring the terms of the Pharmaceutical Price Regulation Scheme 2009 until its expiry, but there is a need to reform the way in which we pay for medicines from 2014 onwards. As we have made clear through the establishment of the cancer drugs fund prior to 2014, we are enabling NHS clinicians to have better access to the medicines required for their patients.

This consultation is an important opportunity to engage with different groups in order to gain their views on how we should best reflect the value of medicines in order to deliver the best health outcomes for patients. This consultation sets out the Government’s initial thoughts and invites engagement from interested parties in order that we can begin to develop a future model of medicines’ pricing.

Copies of the consultation document have been placed in the Library. Copies are available to hon. Members from the Vote Office and to noble Lords from the Printed Paper Office.