Proposed Value-Based Pricing System Triggers Fear in British Pharmacy Industry

Proposed Value-Based Pricing System Triggers Fear in British Pharmacy IndustryIt seems that Britain's health watchdog, National Institute for Health and Clinical Excellence (NICE) will retain its esteemed role of contributing to the state-run National Health Service (NHS).

In such an attempt, NICE’s Chief Executive claimed that NICE might play a key role in a value-based pricing system for new medicines due to take effect from 2014. Though the details of the project are yet to be finalized, the manufacturers are expected to get largely benefitted from the new scheme for developing new medicines.

For the last 12 year, the NICE has been examining the pharmacy industry for the benefit of Britain's state health system.

NICE boss Andrew Dillon, on Thursday, claimed, "The government wants a system that is as predictable as possible ... so that it will be very easy for companies to work out whether or not the NHS is likely to find their price acceptable”. It’s being claimed that no hassle will exist in case the drug falls below the threshold price, though a temporary halt can be predicted in case the price moves beyond the permissible limit.

Contrary to the popular belief that Britain is the most industry-friendly location, the new scheme, based on value-based pricing, has raised concerns in the pharmaceutical industry.