# Pharmaceutical price regulation scheme 2014

Source: https://www.keypedia.com/records/uk_mhra_guidance/uk-mhra/4417285d-987d-4feb-8a1f-a22c3ca09a2a
Type: Guidance
Published: December 3, 2013
Updated: January 22, 2018

> The 2014 Pharmaceutical Price Regulation Scheme (PPRS) was a voluntary agreement established between the UK Department of Health and the Association of the British Pharmaceutical Industry (ABPI) to regulate the cost of branded medicines for the National Health Service (NHS). This regulatory framework aimed to balance the need for affordable medicine with the desire to support a thriving pharmaceutical industry. The scheme detailed the conditions for membership, flexible pricing strategies, and patient access schemes designed to facilitate the availability of high-cost treatments. A critical component of the agreement was the PPRS payment mechanism, which required participating companies to make financial contributions to the Department of Health if the total NHS spending on branded medicines exceeded specified growth targets. Additionally, the document clarified how spending from the Cancer Drugs Fund would be accounted for under these financial limits. The guidance also outlined acceptable levels of profit return, capital investment allowances, and formal protocols for resolving disputes between the government and industry partners. While the 2014 PPRS provided the foundational rules for pricing and access during its tenure, it has since been superseded by the 2019 Voluntary Scheme for Branded Medicines Pricing and Access. Therefore, the required actions for pharmaceutical companies now involve transitioning to the updated 2019 framework to ensure continued compliance with UK pricing regulations and rebate obligations.

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## Content

This document explains how the 2014 Pharmaceutical Price Regulation Scheme ( PPRS ) will provide assurance on the control of prices for the branded medicines bill for the NHS. The scheme includes amendments by the ABPI and Department of Health to clarify the way in which spending under the Cancer Drugs Fund is treated by the scheme. This document explains: status and membership of the scheme flexible pricing and patient access schemes PPRS payment mechanism levels of return and allowances dispute resolution The 2014 PPRS is now superseded by the 2019 voluntary scheme for branded medicines pricing and access .

## Attachments

- [The pharmaceutical price regulation scheme 2014](https://assets.publishing.service.gov.uk/media/5a8203f440f0b6230269a61b/The_pharmaceutical_price_regulation_scheme_2014.pdf)
- [Addendum to the 2014 pharmaceutical price regulation scheme](https://assets.publishing.service.gov.uk/media/5a819f91e5274a2e8ab54fd1/CDF_revised_addendum_acc.pdf)