The companies shaping the UK’s commercial landscape
Which companies are working with the government to implement the US-UK pharmaceutical trade agreement? Leela Barham used a Freedom of Information request to find out.
AbbVie, AstraZeneca, Bristol Myers Squibb, GSK, Lilly, Pfizer, Roche, Sanofi, and UCB are all members of the US-UK Pharmaceuticals Agreement Oversight Committee. Industry groups, the ABPI and the BIA, are also on the committee, according to a 7th April response to the FOI from the Department of Health and Social Care.
Government-selected
All the companies are members of the ABPI and, according to an industry source, were picked by the Government. There are no companies from the generic industry listed in the FOI response. This is despite the US-UK agreement shaping the future of the UK’s pricing scheme, VPAG, which covers branded generic products in addition to new branded medicines.
NHS England, which holds the budget for specialised medicines, as well as the HTA body NICE, are also members of the committee.
The Committee appears to be different to the Pharmaceutical Supply Chains Partnership namechecked in the more detailed US-UK agreement released on 2nd April.
Work of the Oversight Committee
More details of the US-UK pharmaceuticals trade agreement were set out on 2nd April, which includes commitments to raise NHS spending on new drugs alongside raising NICE’s standard cost-effectiveness threshold to £25,000 to £35,000 per Quality Adjusted Life Year (QALY) and adoption of a new weighting to use in quality of life calculations. The agreement also capped VPAG rebates for new medicines at 15%, a move away from a variable rate driven by actual spending. The agreement also prevents the headline increase in spending from being reduced through increasing discounts or rebates.
The immediate focus of the Oversight Committee is a fast review of the UK operating environment. There are four sequential ‘sprints’ planned between now and June.
The committee discussions will cover a range of areas that are expected to include the competitiveness of the UK and economic growth, as well as ideas on how to improve the environment for pricing, access, and uptake. The best ideas could be piloted, such as new pricing models.
The committee will also be exploring practical steps so that the UK government meets its obligation to increase spending on innovative medicines. The aim is for spending on new medicines to reach 0.35% of GDP by the end of 2028, and 0.4% by the end of 2030, before rising to 0.6% by the end of 2036. By the end of 2036, the share of the UK NHS's health expenditure on medicines is targeted to be 12% from the current 10%.
Shaping the next scheme
With reports that there is pressure for a faster negotiation on a successor to the VPAG, due to end on 31st December 2028, from the US administration, the Committee will be thinking about the replacement.
According to the ABPI, a future scheme to replace VPAG will also involve input from charitable patient groups in addition to those from industry, NHSE and NICE, to “ensure a broad range of views are considered.”
According to the FOI response, a second meeting of the committee is due to take place on 28th April. That will add to the discussions during the first committee meeting held on 5th March.
