Life Science Leaders Condemn Change To Statutory Scheme

Leaders in the British life science industry have come together to condemn plans to change the Statutory Scheme for branded medicines. 

The government intends to alter branded pricing by having different levies depending on how old the product is. 

Currently, medicine manufacturers give the government a proportion of the sales to the NHS. 

However, the Department of Health and Social Care could introduce a lifecycle adjustment (LCA) scheme for older medicines, which means manufacturers would have to pay a higher payment if the market has little competition, and a lower percentage if it is more competitive. 

The idea behind this is the payment from new products could be lowered if more money was generated by the older medicines, which the government believes would encourage innovation and competition in the industry. 

According to pharmaceutical leaders, however, this could result in reducing patient access to medicines, undermining investment in UK life sciences, and harming clinical research. 

Chief executive of the Association of the British Pharmaceutical Industry (ABPI) Richard Torbett noted that businesses crave consistency.

However, the “unpredictable capped pricing schemes have done the opposite, running hard against the government’s ambition to make the UK a global life science leader and a key driver of UK economic growth”. 

General manager of Astellas Pharma Ltd Jackie Williams added that the new system would have “a negative impact on new product launches”. Therefore, it would hinder the future of the life science industry in the UK. 

It would also mean British patients would not be able to benefit from innovation in the industry and new, potentially life-saving, medicines and treatments.