A big drug maker will be required to pay up a further £100 billion to stop the price hikes that have been taking a huge bite out of the UK’s £3.4tn pharmaceutical sector, the chief executive of the British Pharmaceutical Association (BPA) has warned.
The BPA’s chief executive, Paul Stoddart, said the government would impose a £50-a-dose cap on the prices of some drugs in the pharmaceutical sector to be introduced in the coming months.
He said the cap would apply to all drugs, including generics and those that were “patent-protected”.
The cap would only apply to medicines that were not already in the market.
“We will impose this cap on all medicines, including generic drugs and those with patent protection,” Mr Stoddard said.
This is in line with the government’s approach to the costs of drugs, he said.
“We are taking the Government’s approach and we are moving away from a situation where the Government is forcing the companies to pay for drugs that are not available in the UK.”
The Government has committed to a price cap of between £50 and £100 a dose in the sector, but Mr Stoodart said that was “far too little”.
“The current cap is only $100 for generics, it is still too low and we need to raise that price to be competitive with other countries,” he said in a statement.
“The cap for generic drugs is much higher, it would require us to raise the cap to $300.”
He said generics were already being priced much more than generics that were patent-protected, and the cap was needed to ensure that generics in the country were affordable.
Mr Stoddert said there were “real concerns” about the impact of the cap on generics.
In a statement, the BPA said the policy would have “very limited impact” on the industry, and would also mean that “companies will have to increase the price of generics to keep up with demand”.
The company said it was “deeply concerned” by the news.
We need to ensure the prices are affordable, so that the NHS can continue to run as smoothly as possible.””
The Government is now threatening the health of patients in a country where there is a shortage of drugs and they are trying to make us pay to get them.
We need to ensure the prices are affordable, so that the NHS can continue to run as smoothly as possible.”
The BAA also warned that the policy was likely to “deter pharmaceutical companies from investing in research and development and the growth of new products”.
“This is likely to have a detrimental impact on the development of new medicines and drugs to treat some of the most complex and rare diseases,” it said.