Question to the Department of Health and Social Care:

To ask Her Majesty's Government how the proposed statutory scheme for branded drugs will enhance the position of the UK as a key centre for the life sciences industry.

The Government is committed to supporting the United Kingdom life sciences industry as one of the most innovative and internationally competitive sectors of our economy. The statutory scheme is one component in the wider UK medicines landscape, and covers companies who do not sign up to the voluntary scheme (currently the 2014 Pharmaceutical Price Regulation Scheme).

The impact assessment accompanying the recent Proposed changes to the statutory scheme to control the costs of branded health medicines consultation, concluded that the impact on the UK economy of any foregone research and development investment in response to lower pharmaceutical revenues would be limited, with a net present value impact of -£2.4 million over 2019 to 2021. This is outweighed by positive impacts from reinvesting any savings in the National Health Service leading to net monetised benefits of £1,167 million over the same period. Copies of the consultation document and the impact assessment, 2018 Statutory Scheme – Branded Medicines Pricing, are attached.

The Department has received a number of responses to its recent consultation by members of the public, NHS bodies, industry organisations, as well as individual companies. In considering the responses, the Department will carefully take into account any evidence submitted on the potential impact on the UK life science sector.