Summary
Swiss pharmaceutical company Novartis warns that NHS patients in the UK may lose access to new medicines because of high costs and outdated pricing assessments. After negotiations between the UK government and pharma firms broke down, Novartis stated that it is not considering further investment in the UK. The company criticized the current system that requires high rebate payments on drug sales, which it claims makes the UK less competitive.
Key Facts
- Novartis, a Swiss pharmaceutical giant, claims NHS patients might miss out on new treatments due to high costs.
- The company says current methods for evaluating drug prices in the UK are outdated.
- The UK has a tax system where pharmaceutical firms must pay 23.5% of their income from NHS sales above a certain limit.
- Novartis has pulled back from launching several new medicines in the UK due to market competitiveness issues.
- The UK government proposed an offer to reduce payment rates for drug companies, but negotiations failed.
- Nice, the UK body, assesses drug value using a system that has not been updated since 1999.
- Novartis argues that the assessment thresholds have not kept pace with inflation.
- The pharmaceutical industry believes a solution to the pricing dispute is still possible.
