The government and ABPI agree to accelerate a planned review of VPAG

A planned autumn review of the 2024 Voluntary Scheme for Branded Medicines Pricing, Access, and Growth (VPAG) will be brought forward to report back in June.

In 2023, the government and the pharmaceutical industry agreed to a new deal to support the affordability of branded medicines for the NHS. The agreement aims to enable patients to access the latest lifesaving treatments more consistently and boost the UK’s position as a global leader in advanced healthcare, technology, and clinical research.

When the scheme was agreed, it included a planned review of scheme terms in the autumn of 2025 to allow the government and industry to propose and implement necessary changes to ensure the scheme is delivering on its objectives.

In recognition of the government’s intention to publish both its 10-year plan for the NHS, and the Life Sciences Sector Plan as part of the broader industry strategy this summer, the government and industry have agreed to bring this review forward so it can be completed in June.

The review will focus on addressing shared concerns across government and industry about the significantly higher than expected ‘headline payment rate’ for newer medicines in the scheme to restore its predictability and sustainability.

Richard Torbett, Chief Executive of the ABPI, said: “Wes Streeting has made clear his determination to work with our industry to address existing commercial challenges while also setting out a bold vision to transform the way the health system values medical innovation. The first step is to address high and unpredictable medicine payment rates in June so we can then power forward to support the NHS 10-year plan and deliver the government's upcoming life sciences strategy.”