Novartis Warns NHS Patients Will Miss Out on New Treatments Due to Skyrocketing Costs

Novartis warns that NHS patients will lose access to new treatments due to skyrocketing costs and outdated assessment methods. The company claims the UK is "largely uninvestable" and has already delayed launching several medicines. The UK government has proposed a "generous and unprecedented offer" to reduce payment rates for pharmaceutical companies, but talks have broken down.

Novartis, a leading pharmaceutical company, has expressed concern over the potential loss of access to new treatments for NHS patients due to escalating costs and outdated assessment methods in the UK. The company has indicated that the UK is "largely uninvestable" and has already delayed the launch of several medicines as a result of the ongoing pricing dispute. The UK government has proposed a "generous and unprecedented offer" to reduce payment rates for pharmaceutical companies, but negotiations have broken down [1].

The dispute centers on the Voluntary Scheme for Branded Medicines Pricing, Access, and Growth (VPAG), which sets the government's budget for branded medicines and requires companies to agree to certain payment terms. The current scheme, which runs from 2024 to 2028, caps the allowed annual growth of drug expenditure at 3.75% for this and next year and at 4% for the remaining two years. As a result, biopharma companies are repaying about 23.5% to 35.6% of their U.K. revenue from branded drugs to the NHS under VPAG [3].

Novartis has criticized the current system, stating that it hinders innovation and patient access to future treatments. The company has called for a reduction in payment rates to make the UK a more attractive market for pharmaceutical investment. However, the UK government and the Association of the British Pharmaceutical Industry (ABPI) have not been able to reach an agreement on the terms of the new VPAG period, with the industry seeking to lower rebate rates to single-digit, internationally competitive levels [3].

The lack of a resolution to this dispute could have significant implications for both patients and the pharmaceutical industry. Patients may miss out on innovative treatments, while pharmaceutical companies may be discouraged from investing in the UK market. The UK government, on the other hand, is faced with the challenge of balancing the need to control NHS spending with its ambition to be a global leader in life sciences and innovation [1].

References:
[1] https://www.bmj.com/content/390/bmj.r1812
[2] https://www.biospace.com/press-releases/leqvio-advances-toward-broader-access-with-agreement-between-novartis-and-the-pan-canadian-pharmaceutical-alliance
[3] https://www.fiercepharma.com/pharma/uk-pharma-drug-price-talks-break-down-industry-fails-lower-discount-rate