PPRS Update Quarter 4 2014 payments 13 th March 2015 David Watson Director Pricing and Reimbursement 1.

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Presentation transcript:

PPRS Update Quarter payments 13 th March 2015 David Watson Director Pricing and Reimbursement 1

Q growth rate ABPI focus Communication to members Q & A Agenda 2

Q4 DH Publication £310M paid by industry in total for 2014 Measured spend: the spend controlled by the PPRS Payment mechanism. Included sales of new products Sales covered by the PPRS Payment: The percentage payment applies to these sales, which exclude sales of new products. Sales of new products are included in the calculation of the overall sum to be repaid across all member companies. Products with a new active substance designation that are introduced after 31 December 2013 are excluded from the sales used to calculate the payment by each company 3

4 Q4 DH Publication Growth for the full year 2014: 5.2%, down from the YTD Q3 growth of 5.93%

5 Q4 DH Publication Quarter versus Quarter growth lower at 3.2%

6 Q4 DH Publication The latest growth rate won’t change the 2015 payment,..but will be part of the calculation for the 2016 payment.

PPRS timelines*: 31 st Jan2014 Q4 sales report + payment 12 th MarchQ4 Data published 30 th April2015 Q1 sales report + payment 2 nd JuneQ1 Data published 31 st July2015 Q2 sales report + payment 3 rd SeptQ2 Data published 30 th Sept2014 audited sales reports due 31 st Oct2015 Q3 sales report + payment 9 th DecQ3 Data and 2016 % payment published *DH Publication plan Feb 2015

Summary: growth 8 1.Fourth quarter payments of £81 million means a total of £310 million paid by industry in 2014 to underwrite the medicines bill 2.Full year growth of 5.2% - less than the quarter three growth of 5.93%, but still represent growth above the original joint forecast of 3.87% 3.Last quarter growth much lower at 3.2%, Q will drive 2016 payment, scheme estimated 3.52% growth in New product share 0.55% - in line with estimates 5.Increased use of branded medicines is encouraging but industry would still like to see equal access for patients across care sectors

9 PPRS : platform for change Ensure delivery of commitments to improved access and uptake: ABPI working with the Department of Health, NHS England and government to ensure action in key areas: NICE, access and uptake, through formal reviews MISG – ABPI in working group with mandate to develop recommendations to unlock blockages in the NHS Advocacy focus with aligned industry positions e.g. Parliamentary debate on patient access Support planning: reforecast of medicines growth

Medicines Bill Projections (2015 – 2018) March Forecasting the market Step 1Step 2Step 3 Market trends analysis Medicine Market forecast Adapt the medicine market forecast to the PPRS framework

11 PPRS : company events All company PPRS workshops (tbc: 30th March, 13th and 29th April) Context for the current scheme Update on growth, forecast plans Progress with PPRS commitments NICE reform, CDF Finance Directors forum (11th March) Smaller Companies Forum (24th March)

Q & A