Health: NICE

Baroness Trumpington Excerpts

Wednesday 3rd November 2010 Lords Chamber

[Earl Howe]

My Lords, I think the noble Lord has perhaps misunderstood the purpose of the plans that we have set out. Prior to the introduction of value-based pricing, we will continue to ensure that the NHS funds drugs that have been positively appraised by NICE. I hope that that reassures him that clinicians are not going to be placed in an awkward position. We will be consulting on our plans for value-based pricing before the end of the year, but I can assure the House that the point of moving to a new pricing system is to increase patient access to new effective drugs. That is what we aim to do.

[Baroness Trumpington]

My Lords, my noble friend has already spoken about the time it takes to develop a drug—often many years. This costs money and accounts, in some cases, for the high price of the drug.

[Earl Howe]

My noble friend, with her experience, is of course quite right. I am told that it costs upwards of $1 billion to develop a new molecule and bring it to the market. It is a very expensive process. That is recognised in the freedom of pricing that currently exists for drug companies at launch and in the patents that they are able to enjoy in subsequent years.