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“2020health is an important and thoughtful contributor to the health debate”

Dr Sarah Wollaston MP, Chairman, Health Select Committee

 
 

Press Release Recognising value of new medicines in the UK

2020health publishes report of Value Based Picing of Pharmaceuticals

In spite of a rich history of drug innovation, the UK is falling behind in investing in new medicines for the future.

2020health’s final report Implementing value-based pricing for pharmaceuticals in the UK. This paper builds on a series of earlier reports reviewing the UK’s current system of pharmaceutical regulation, incentives for innovation and exploring viable alternatives for implementation. Value-based pricing is a new strategy for the pricing of pharmaceuticals. It greater reflects the value to patients, carers, society and the economy of some new drugs which deliver health benefits that exceed NHS predictions. This concept suggests that the additional costs of innovative medicine will be displaced elsewhere in the NHS and in the welfare economy. This follows our interim report last year titled, How can value-based pricing improve access and adoption of new treatments? This explored what the concept of ‘value’ actually means. For example, in the case of dementia treatments, the well-being of carers is not included as one of the benefits generated by medicines use.

Principle author, Panos Kanavos, senior Lecturer at the LSE says that acknowledging the value of research - “will ultimately open the way to fundamental new ways of treating conditions like cancer and neurological diseases, and which will also contribute to building a stronger knowledge based UK economy capable of earning its future living in a changing world.”

With respect to the UK, the report says, “It is apparent that the British economy will not be able to recover from its current crisis without fostering vigorous and financially viable science-based industry, and that state purchasers should not be in a position to artificially depress the prices of valued innovations of any sort. But politicians and the public they serve must almost be confident that companies are not in a position to unfairly exploit the public purse.”

The main point is that although parts of the current pricing system should be retained, recognising the value of a medicine should help determine the reasonableness of individual pharmaceutical product prices.

Key facts

  • Investment in medicine remains at 1% GDP in spite of innovation
  • Only 10% of NHS budget is spent on Medicines
  • Current NICE guidelines do not take a holistic view, assessments of new medicines only take into account Quality of Life Adjusted Years (QALY) which measures disease burden

-Ends-

Notes to Editors

 

2020health is an independent, grass-roots, think tank for health and technology interested in realistic solutions.

What we do
• Identifying issues and bringing informed people together to create solutions.
• Demonstrating how to improve health and quality of life through successful commissioning, competition and technology.
• Exploring the benefits of public and private cooperation.
• Examining the consequences of healthcare decisions on society, lifestyle and culture.
Why
• Ensure policy reflects grass-roots wisdom and experience of professionals.
• Broaden involvement and debate on key concerns to give value for money.
• Build on the achievements of the present to create the vision for improved healthcare.
How
• Combining the experience of practitioners, experts and policy makers in the public and private sector through projects, research publications and debates.
• Restoring trust, confidence and responsibility to professionals and enabling people to have their say through active participation and networking.
• Publicising our work through the press, events and meetings with policy makers.
Where
We are based in the heart of Westminster.
Current Interests
Commissioning; Mental health; Elderly care; Work and wellbeing; NHS IT; Value-based pricing; Long term conditions; Health and social care integration.
 

2020health Report Implementing value-based pricing for pharmaceuticals in the UK

Implementing value-based pricing for pharmaceuticals in the UK

This report, in partnership with the LSE, explores value-based pricing as a new strategy for the pricing of pharmaceuticals. It details issues that need to be addressed for the new system to be effective and greater reflects the value to patients, carers, society and the economy of some new drugs which deliver health benefits that exceed NHS predictions. read on Implementing value-based pricing for pharmaceuticals in the UK