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Drug evaluation and reimbursement in the UK. Andrew Dillon Commonwealth Fund - Alliance for Health Reform Briefing on international pharmaceutical policy Washington DC, 7 November 2011. Overview.
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Drug evaluation and reimbursement in the UK Andrew Dillon Commonwealth Fund - Alliance for Health Reform Briefing on international pharmaceutical policy Washington DC, 7 November 2011
Overview • In theory, any licenced drug can be prescribed through the National Health Service. In practice, drug use is influenced by: • NICE guidance • Local formularies • Fiscal pressure • Budgets for drugs used in the NHS are held by local hospitals for secondary care and by primary care trusts for out-of-hospital prescribing (by General Practitioners)
Pharmaceutical Price Regulation Scheme • Introduced in 1957, the PPRS is a voluntary agreement between the Department of Health and the UK branded drugs industry • Its objectives are to: • Deliver value for money • Encourage innovation • Promote access and uptake • Provide stability and predictability • Member companies sign up to portfolio price control, within which they can price individual products as they wish
PPRS and NICE • NICE appraises most but not all new drugs and new indications • Companies can increase or decrease the price of a drug, after a NICE appraisal of the first indication, if they have a new indication with more patient benefit or if they have evidence of increased benefits for the indication. • Companies can offer ‘patient access schemes’, which effectively reduce the price the NHS pays. These schemes are either: • Financially-based schemes, or • Outcomes-based schemes
NICE: cost effectiveness analysis 1 x Probability of rejection x Rituximab for follicular lymphoma Imatinib for chronic myeloid leukaemia (blast phase) Trastuzumab for early stage HER-2 positive breast cancer x 0 80 16 32 48 64 Cost per QALY ($’000)
Most new health technologies bring additional value 82% of NICE advice is positive
Value based pricing • Recent UK Government proposals designed to extend the definition of value in UIK drug appraisal and reimbursement decisions • Increased focus on: • Wider societal benefits • Products which address areas of unmet need or high burden of illness • New products with particularly innovative features • Seen as an evolution of and not a replacement for the PPRS and NICE arrangements