UK pharma body calls on the government to drop the increase in the repayment rate for drugmakers

In order to prevent potential setbacks in the industry, the UK’s pharmaceutical trade body demanded on Thursday that the government abandon its plans to raise the repayment rates for drugmakers.

 

Drug companies are required to give the government a portion of their drug revenue in order to participate in the UK’s voluntary scheme agreement, which lowers the cost of branded medications for consumers. The revenue clawback rate will increase from 24.5% to 27.5% under the Department of Health and Social Care’s plans.

 

According to the Association of the British Pharmaceutical Industry, the nation’s ongoing efforts to raise rates are likely to send the ‘worst possible signal’ to boardrooms and investors around the world (ABPI).

 

According to Richard Torbett, chief executive of the ABPI, ‘hiking these clawbacks to such anticompetitive levels risks undermining the UK’s offer to international life sciences companies.’

 

AbbVie and Eli Lilly, two of the world’s largest pharmaceutical companies, left the UK’s voluntary drug pricing agreement in January after the repayment rates increased to 26.5%.