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| Version 1 | Version 2 |
|---|---|
| Deal reached on NHS drug prices | Deal reached on NHS drug prices |
| (about 1 hour later) | |
| The government and the drugs industry have struck a deal which could save the NHS in the UK up to £550m per year. | The government and the drugs industry have struck a deal which could save the NHS in the UK up to £550m per year. |
| A flexible pricing scheme will mean new drugs can be initially introduced at a lower price, which could be increased if the medicine proves effective. | A flexible pricing scheme will mean new drugs can be initially introduced at a lower price, which could be increased if the medicine proves effective. |
| There are set to be more schemes where the NHS and drug companies share the cost of innovative treatments. | There are set to be more schemes where the NHS and drug companies share the cost of innovative treatments. |
| An Office of Fair Trading report last year said the NHS spent up to £500m annually on overpriced medicines. | An Office of Fair Trading report last year said the NHS spent up to £500m annually on overpriced medicines. |
| The deal is expected to save the NHS around £350m in 2009/10, and around £550m every year after that. | The deal is expected to save the NHS around £350m in 2009/10, and around £550m every year after that. |
| In 2006/07, £10.6 billion - 12.7% of the total NHS budget - was spent on drugs. | In 2006/07, £10.6 billion - 12.7% of the total NHS budget - was spent on drugs. |
| A more flexible approach to pricing is in everyone's interest. Health Secretary Alan Johnson | A more flexible approach to pricing is in everyone's interest. Health Secretary Alan Johnson |
| Under the current system, a drug company sets a price for a new medicine when it is launched, and there is little opportunity to change that - so firms set the price at what they think a drug will ultimately be worth, even if there is little evidence for that at the outset. | Under the current system, a drug company sets a price for a new medicine when it is launched, and there is little opportunity to change that - so firms set the price at what they think a drug will ultimately be worth, even if there is little evidence for that at the outset. |
| The flexible pricing scheme aims to change that, and means a medicine's cost could go up - or down. | The flexible pricing scheme aims to change that, and means a medicine's cost could go up - or down. |
| The cost of branded drugs will also be cut. | The cost of branded drugs will also be cut. |
| 'In everyone's interest' | 'In everyone's interest' |
| Overall, the cost of drugs is predicted to fall from 3.9% from February 2009 with a further cut of 1.9% from January 2010. | Overall, the cost of drugs is predicted to fall from 3.9% from February 2009 with a further cut of 1.9% from January 2010. |
| The government and ABPI will also look at introducing generic substitution from 2010 - which would mean a pharmacist could give out the cheaper non-branded version of a drug even if the GP had named the branded version on the prescription. | The government and ABPI will also look at introducing generic substitution from 2010 - which would mean a pharmacist could give out the cheaper non-branded version of a drug even if the GP had named the branded version on the prescription. |
| At the moment, that is not allowed. | At the moment, that is not allowed. |
| Health Secretary Alan Johnson said of the new arrangements: "A more flexible approach to pricing is in everyone's interest. | Health Secretary Alan Johnson said of the new arrangements: "A more flexible approach to pricing is in everyone's interest. |
| "It gets clinically and cost effective drugs to more patients - providing cheaper options where clinically appropriate - delivers value for money for the NHS and the tax payer, and creates a better market for the pharmaceutical industry while supporting research and innovation." | "It gets clinically and cost effective drugs to more patients - providing cheaper options where clinically appropriate - delivers value for money for the NHS and the tax payer, and creates a better market for the pharmaceutical industry while supporting research and innovation." |
| Dr Richard Barker, director general of the ABPI said it was the first time the pricing agreement between the NHS and the drugs industry had not been purely a financial deal. | Dr Richard Barker, director general of the ABPI said it was the first time the pricing agreement between the NHS and the drugs industry had not been purely a financial deal. |
| "This landmark deal marks a turning point for patients, the NHS and the pharmaceutical industry. | "This landmark deal marks a turning point for patients, the NHS and the pharmaceutical industry. |
| "It is an all-encompassing package that encourages the discovery of new, more effective medicines, while at the same time allowing NHS patients to access these treatments more quickly." | "It is an all-encompassing package that encourages the discovery of new, more effective medicines, while at the same time allowing NHS patients to access these treatments more quickly." |
| Risk-sharing | Risk-sharing |
| Nigel Edwards, director of policy at the NHS Confederation which represents NHS managers, said throughout the debate over top-up payments for cancer drugs, they had said one part of the solution had to be a new pricing model. | Nigel Edwards, director of policy at the NHS Confederation which represents NHS managers, said throughout the debate over top-up payments for cancer drugs, they had said one part of the solution had to be a new pricing model. |
| "It is good news that this is now starting to happen although we would caution that there needs to be care taken that this does not land doctors and nurses with a heavier workload of form filling and bureaucracy." | "It is good news that this is now starting to happen although we would caution that there needs to be care taken that this does not land doctors and nurses with a heavier workload of form filling and bureaucracy." |
| But shadow health minister Mark Simmonds said the government had damaged the UK's reputation as a base for the pharmaceutical industry and failed to address the issue of drugs being available to patients in Europe that are not available here. | |
| And Liberal Democrat health spokesman, Norman Lamb said: "This new development is welcome but not enough on its own to deliver real change." |