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DHSC plans big hike in statutory scheme medicines clawback

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Will the DHSC really increase the statutory scheme clawback from 7.8% to 21.7%?

 

A Department of Health and Social Care consultation has revealed plans for large increases in the clawback paid to the DHSC by the pharma industry under the statutory scheme for medicines pricing.

 

The proposed clawback for products covered by the statutory scheme are 9.9% for 2019, 15.8% for 2020 and 21.7% for 2021.

 

The DHSC also intends to include biologics in the statutory scheme.

 

The consultation argues that the move will not make the UK a less attractive location for foreign investment in R&D, as the availability of expert scientific labour and favourable tax conditions are believed to be of more significance in decisions on where to locate R&D activity.

 

However, a Health Service Journal (HSJ) commissioning correspondent has said a pharmaceutical industry insider told her that the threat of a punitive statutory scheme is being used to encourage industry to accept the DHSC’s offer in negotiations on a new pharmaceutical price regulation scheme (PPRS).

 

The existing PPRS agreement expires at the turn of the year. If no new PPRS agreement can be reached, companies will be subject to the statutory scheme.

 

The same pharmaceutical industry source told HSJ that taken together with Brexit, the devaluation of sterling and low uptake of new medicines, the new proposal would deter companies from launching new products in the NHS.

 

Further information

Gov.uk: Open consultation: statutory scheme to control costs of branded health service medicines

HSJ: Ministers to ask drug companies to stockpile six weeks of medication

HSJ: The Integrator: ‘Loaded gun’ medicine plans may richochet back onto government