Companies that are part of the statutory pricing scheme could pay up to £6m less in 2020 under government proposals to cut percentage payments on their sales to the National Health Service. 

The pricing of medicines may appear as a mystery to many; theories range from what the market will bear to prices being based on value. The Pink Sheet examines the role of two key players with influence in drug pricing in the UK – health technology assessment body NICE, which decides whether a product is value for money, and NHS England, which leads the tax-funded national health service in England and pays for new specialized drugs.

With the emphasis on getting lower prices even for cost-effective drugs, England’s proposed commercial framework may be sending a negative signal to global companies.

Hearing direct from HTA agencies on what evidence they want to see is now an option through early dialogue. With many options for early dialogue available, it is hard for companies to know whether to get advice, from which agency and how to get the most out of the dialogue.

Plans for a new commercial framework for publicly funded medicines in England are out for consultation. The concept of fair and responsible pricing figures large in the proposals.

The Pink Sheet’s freedom of information request relating to the 2019 pricing and access to branded medicines scheme has shed light on the metrics being used to gauge whether the scheme is delivering on its promise.