The pharmaceutical company Novartis has stated that increasing costs are limiting NHS patients’ access to new treatments. This assertion follows a breakdown in negotiations between Health Secretary Wes Streeting and pharmaceutical firms regarding medication pricing in the UK. Novartis claims that the process used to assess a new drug’s value for money is outdated, making it difficult for innovative medications to gain approval for use within the NHS.
Johan Kahlstrom, head of Novartis UK, indicated that the UK is perceived as “largely uninvestable” due to the rising costs associated with providing medications. He noted that systemic barriers have led Novartis to avoid significant investments in the UK concerning manufacturing and advanced technology. Under recent agreements, pharmaceutical companies were expected to rebate a set percentage of their sales to the NHS, initially projected at 15%. However, the actual rebate has increased to 23.5%, significantly higher than similar rates in other countries.
Due to these developments, Novartis asserts that patients are missing out on new treatments that are available in other European nations. The firm highlights that the declining competitiveness of the UK market has resulted in the inability to launch several new medicines in the country. Concerns have been raised regarding the potential for future innovations to be deprioritized in the UK if the current environment remains unchanged.
In response, the UK government has proposed a “generous” offer aimed at fostering growth in the pharmaceutical sector, which included reducing payment rates for companies and freeing up funds for new medications. However, the Association of the British Pharmaceutical Industry (ABPI) has pointed out that while demand for innovative medicines continues to rise, investment in new treatments is decreasing due to the current rebate system. The organization advocates for updates to the UK’s assessment methods for new drugs, emphasizing that without reform, the country may continue to fall behind in terms of research and patient access to medications.
Source: https://www.bbc.com/news/articles/c4gzk1p90q1o?at_medium=RSS&at_campaign=rss