BioIndustry Association Release: Medicines Pricing Agreement Will Stifle Life Sciences Investment in the UK

6 November 2013 -- Commenting on today's announcement by the Department of Health and the Association of the British Pharmaceutical Industry (ABPI) on the heads of agreement for the Pharmaceutical Price Regulation Scheme (PPRS) from 1 January 2014, Steve Bates, BIA Chief Executive Officer, said:

"Buying new medicines is not only an investment in NHS patient care but also in the UK's future economic prosperity, as the life science sector is a key part of the our future rebalanced economy. Decisions which affect the commercial environment for medicines have a significant impact on the UK's attractiveness for direct global R&D investment and on our biotech ecosystem. Today's announcement by government shows a worrying lack of joined-up thinking about a key sector for the UK's future economic growth.

"The BIA has repeatedly warned that the government's pricing proposals for pharmaceuticals put at risk future investment in the UK R&D base, as the perception of the UK as a market for innovative products has an important bearing on the global investment decisions of multinational biopharmaceutical companies. So, it is extremely disappointing to see that the Department of Health "believes there is no reason to expect that changes in UK prices would significantly affect the UK's attractiveness as a location for R&D"1.

For NHS patients to receive the full benefits of new treatments it is vital new medicines are launched in Britain as a first location around the globe. This enables UK clinicians to remain global opinion leaders amongst their peers which encourages further R&D in the UK as a virtuous circle. If we lose this global pole position it will be hard to regain, UK patients will miss out on the latest treatments and clinical practice in the UK will cease to be world leading.

"Additionally, the BIA has proposed, to the Department of Health, novel mechanisms to make the UK an attractive place to launch innovative medicines, and ensure that patients here are the first to access breakthrough new therapies. We have been waiting for more than a year for government to respond.

"The exemption of new products launched after 1 January 2014 from payments under the new PPRS scheme offers scant consolation for companies, particularly when balanced against the changes to the scheme for smaller companies that will make the UK a less attractive destination for global companies wanting to set up a European headquarters.

"The austerity price cap for the whole branded medicines bill is a big change from previous PPRS deals and I fear this agreement will have a negative impact on industry investment here which is contrary to the government's stated industrial and life science strategies."

For further information, please contact Robert Winder, Head of Communications, rwinder@bioindustry.org, 020 7630 2191; mobile 07825 942 934.

1 - Paragraph 52 in Government Response to the Consultation on Revisions to the Statutory Scheme to Control the Prices of Branded NHS Medicines http://bia.me/16oDExB

Pharmaceutical Price Regulation Scheme (PPRS): heads of agreement

The heads of agreement document for the Pharmaceutical Price Regulation Scheme is available from the Department of Health website: http://bia.me/1fj8bhH

BioIndustry Association

Founded over 20 years ago at the infancy of biotechnology, the BioIndustry Association (BIA) is the trade association for innovative enterprises involved in UK bioscience. Members include emerging and more established bioscience companies; pharmaceutical companies; academic, research and philanthropic organisations; and service providers to the bioscience sector. The BIA represents the interests of its members to a broad section of stakeholders, from government and regulators to patient groups and the media. Our goal is to secure the UK's position as a global hub and as the best location for innovative research and commercialisation, enabling our world-leading research base to deliver healthcare solutions that can truly make a difference to people's lives. For further information, please go to www.bioindustry.org

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