This scheme strikes a balance between supporting innovation in the pharmaceutical industry, helping to get the most cost-effective medicines to patients as quickly as possible, and ensuring complete predictability on spend for the entire branded medicines bill for the NHS.
The VPAS means that the branded medicines bill will not grow by more than 2% in any of the next 5 years.
This pro-innovation deal is particularly important as the UK leaves the EU. The scheme includes a commitment from NHS England to increase uptake of new medicines for the five highest health gain categories in line with the top performing countries in the world.
This is a significant step forward and is set to benefit thousands of patients. The ABPI will be working with NHS England to identify these key areas.
All new medicines and significant indications will now routinely be appraised by NICE. This means the NHS in England can have total confidence that every medicine that is approved is both clinically and cost-effective and should be rapidly made available to all eligible patients, without delay.
The scheme supports small and medium sized companies through a new series of exemptions and payment relief to encourage innovation and growth.
Freedom to set list prices is maintain for new active substances (NAS), along with these products having exemption from payments for three years from the month of licence, starting with products licensed from 1st January 2018.