A report by the Office of Fair Trading has recommended that pricing of drugs is based not on how much the drug costs to develop, but on the benefit that the drug can bring.
Drug pricing scheme could increase NHS spending
Professor Karl Claxton, from the Department of Economics and Related Studies and Centre for Health Economics, at the University of York, believes that such Value-Based Payments (VBP) make sense, but is worried that the current plan is overly generous toward pharmaceutical companies and could lead to a rise in the NHS’s total drug bill.
