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The Pharmaceutical Price Regulation Scheme 2005

The Pharmaceutical Price Regulation Scheme (PPRS) 2005 was effective from 1 January 2005 until 31 August 2008.  

Overview

The Health Departments and the Association of the British Pharmaceutical Industry (ABPI) have a common interest in ensuring that safe and effective medicines are available on reasonable terms to the National Health Service (NHS), and in a strong, efficient and profitable pharmaceutical industry in the United Kingdom (UK).

Such an industry must be capable of sustained research and development (R&D) leading to the future availability of new and improved medicines in this and other countries.

The Pharmaceutical Price Regulation Scheme (PPRS) is an agreement for the purposes of Section 33 of the Health Act 1999. The objectives for the scheme are:

  • secure the provision of safe and effective medicines for the NHS at reasonable prices
  • promote a strong and profitable pharmaceutical industry capable of sustained research and development expenditure so as to lead the future availability of new and improved medicines
  • encourage the efficient and competitive development and supply of medicines to pharmaceutical markets in this and other countries.

The text of The Pharmaceutical Price Regulation Scheme sets out the conditions under which scheme members may supply branded medicines to the NHS.

7% price reduction

Details on implementation of the price cut under the 2005 scheme and modulation.

Providing additional information on sales of branded medicines

Following consultation with the Association of the British Pharmaceutical Industry, it was agreed that members of the PPRS would be asked to supply additional information on the sales of branded medicines under the 2005 PPRS on a voluntary basis. Scheme members not prepared to to supply information voluntarily are subject to Regulations requiring the supply of more detailed information on the sales of their branded medicines.

Office of Fair Trading study of the PPRS

In September 2005 the Office of Fair Trading (OFT) launched a market study into the PPRS. The OFT aimed to assess whether the scheme was the most effective means of securing value for money for the NHS, whilst also offering appropriate incentives for pharmaceutical companies to invest in new medicines for the future.

The OFT published its report on 20 February 2007.

On 2 August 2007 the Government publihed its interim response to the OFT market study on the PPRS.

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