UK Increases Statutory Scheme and VPAS Revenue Clawback Rates

March 3, 2023

The UK’s voluntary scheme for branded medicines pricing and access (VPAS) controls National Health Service (NHS) spending by requiring drugmakers to recoup the government for a portion of sales if spending exceeds a certain rate of growth. The new clawback rate for VPAS increased to 26.5% while the Statutory Scheme increased to 27.5%. As a result several pharma companies are reconsidering their strategy in the nation.

According to Phil Taylor, “The hike in VPAS has already caused two big pharma groups to exit the scheme – Eli Lilly and AbbVie – which said in January that the planned increase was “punitive”. Their decision to switch to the Statutory Scheme, which has historically carried a higher repayment rate, has been taken as a warning message to the government over the issue.”

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