GSK backs ‘reasonable balance’ on PPRS

GlaxoSmithKline (GSK) has welcomed the recent government announcement on the Pharmaceutical Price Regulation Scheme (PPRS).

It said the recently-agreed five-year deal which has no break clauses will offer predictability and stability for the pharmaceuticals industry while also including savings of five per cent across the term of the deal.

The company adds the government aims to achieve part of its savings target by reducing the impact of newer and innovative medicines which will face a price cut of two per cent, while also pushing down the prices of older drugs that are now off-patent.

Eddie Gray, president of European pharmaceuticals at GSK, said: “We believe a reasonable balance has been struck in the new PPRS agreement.

“It is clear that the government is facing significant funding pressures and challenging efficiency targets, however they have recognised the importance of supporting innovation, while achieving value for money for the NHS.”

He added that the new agreement preserves key founding principles, including the right of the pharmaceutical industry to freely price medicines and increase pricing on those drugs that offer genuine value to the NHS and patients.

When the new deal was announced last week, secretary of state for health Alan Johnson said “encouraging progress” had been made, restating the government’s duty to enable patients to benefit from novel drugs at a reasonable price while recognising the contribution of the pharmaceutical industry.