Executive Summary

On 1 Jan 2019 two new price regulation structures came into effect in the UK: the Voluntary Scheme and Statutory Scheme. These effectively replace the PPRS and Statutory Regulations, respectively.

These schemes broadly follow the same general principles as the their predecessors. More detail of the schemes, and changes for 2019, are available on MAP’s pages covering the Voluntary Scheme and Statutory Scheme.

Pre-2019, within the UK, two slightly different pricing arrangements for branded medicines existed, the voluntary Pharmaceutical Price Regulation Scheme (PPRS) and the Statutory Regulations

  • The PPRS was akin to the Voluntary Scheme, negotiated between the ABPI and the DHSC every five years, which aims to limit the growth of branded medicines and is renegotiated every five years. PPRS repayments are triggered if the growth in industry results in the NHS spending more on branded medicines than the agreed level (set by the ABPI and DHSC)
  • The Statutory Regulations imposed a similar rebate scheme to the PPRS, but with a final payment percentage slightly higher than that of the Voluntary Scheme.