# PPRS: payment percentage 2018

Source: https://www.keypedia.com/records/uk_mhra_guidance/uk-mhra/c09486a4-b0ce-460a-9a71-2a79624d0df1
Type: Guidance
Published: December 15, 2017

> This document outlines the Pharmaceutical Price Regulation Scheme (PPRS) payment percentage set for the 2018 calendar year. The PPRS serves as a voluntary regulatory framework established through negotiations between the Department of Health and Social Care (DHSC), representing the United Kingdom and Northern Ireland governments, and the Association of the British Pharmaceutical Industry (ABPI), which represents the branded pharmaceutical sector. The primary objective of this agreement is to manage the expenditure of the National Health Service (NHS) on branded medicines while ensuring patients have access to innovative treatments at fair prices. For 2018, the calculated payment percentage has been officially set at 7.80%. This rate dictates the portion of sales revenue that participating pharmaceutical companies are required to pay back to the government to help stabilize NHS drug spending. The summary details the methodology behind this calculation, reflecting the balance between industry sustainability and public healthcare affordability. Unlike mandatory statutory schemes, the PPRS relies on this cooperative agreement to control costs. There are no specific inspections or violations noted in this announcement, as it pertains to a financial adjustment within a voluntary pricing agreement rather than a compliance audit. Companies operating under this scheme are expected to apply this percentage to their relevant sales figures for the duration of the 2018 period to remain in compliance with the negotiated terms.

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## Content

The PPRS payment percentage for 2018 will be 7.80%. This document sets out how the level was calculated. The PPRS is a voluntary agreement to control the prices of branded drugs sold to the NHS. It is negotiated between the Department of Health and Social Care, acting on behalf of the UK government and Northern Ireland, and the branded pharmaceutical industry, represented by the Association of the British Pharmaceutical Industry.

## Attachments

- [Pharmaceutical Price Regulation Scheme (PPRS) 2014: payment percentage for 2018](https://assets.publishing.service.gov.uk/media/5a82d21bed915d74e6237cc4/PPRS_Payment_percentage_2018.pdf)