Executive Summary

Within the UK, two pricing arrangements for branded medicines exist, the voluntary Pharmaceutical Price Regulation Scheme (PPRS) and the Statutory Regulations

  • The PPRS is a 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 new statutory regulations have imposed a similar rebate scheme to the PPRS, with a payment percentage of 7.80% on all presentations (exemptions apply).