BMJ  2007;334:435-436 (3 March), doi:10.1136/bmj.39136.464421.BE

Editorials

The Pharmaceutical Price Regulation Scheme

Proposals for a new drug pricing mechanism in the NHS are welcomed

The first 150 words of the full text of this article appear below.

Early last week, the Office of Fair Trading (OFT) published its report on the Pharmaceutical Price Regulation Scheme,¹ a uniquely British mechanism for determining the prices the National Health Service pays for brand name drugs (currently costing around £8bn (12bn; $15.6bn) a year). For 18 months the enquiry team had analysed the scheme, heard evidence, looked at arrangements in other countries, and modelled alternatives in an NHS context. Early on Tuesday 20 February it delivered its verdict: the scheme was no longer fit for purpose and needed to change.

The Pharmaceutical Price Regulation Scheme (formerly the Voluntary Price Regulation Scheme) has been running since 1956. It is a voluntary arrangement between the Department of Health and individual drug companies, which determines the prices companies can charge the NHS for their drugs.² The scheme has helped keep drug companies based in the United Kingdom in good stead since its inception.

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St George's, University of London, London SW17 0RE

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Relevant Article

Value based pricing for NHS drugs: an opportunity not to be missed?

Karl Claxton, Andrew Briggs, Martin J Buxton, Anthony J Culyer, Christopher McCabe, Simon Walker, and Mark J Sculpher
BMJ 2008 336: 251-254. [Extract] [Full Text] [PDF]

This article has been cited by other articles:

• Claxton, K., Briggs, A., Buxton, M. J, Culyer, A. J, McCabe, C., Walker, S., Sculpher, M. J (2008). Value based pricing for NHS drugs: an opportunity not to be missed?. BMJ 336: 251-254 [Full text]  

Rapid Responses:

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Pharmaceutical Price Regulation Scheme

Richard S Tiner
bmj.com, 9 Mar 2007 [Full text]

Economic perspective on prescription pricing

Timothy D Heymann
bmj.com, 26 Mar 2007 [Full text]