2024 Voluntary Scheme agreement published

The full text of the 2024 voluntary scheme for branded medicines pricing, access and growth (VPAG) has been published by the Department of Health and Social Care (DHSC).

The 2024 VPAG agreement text [1] sets out the detailed terms of the agreement reached between DHSC, NHS England and the Association of the British Pharmaceutical Industry (ABPI), as outlined in the summary heads of agreement published on 20 November [2].

Suppliers of branded medicines to the NHS will now have an extended deadline of 15 January 2024 to decide whether to join the new 2024 Voluntary Scheme, or default to the updated Statutory Scheme for 2024 [3].

The full VPAG text provides clearer timelines and commitments for the review to raise the budget impact test threshold (BIT) to £40 million, and the Commercial Framework review on indication-specific pricing mechanisms, both to launch in the first six months of the new scheme in 2024.

The full agreement text also provides greater technical guidance on the definition of newer and older products, alongside clarifications around reference pricing, and when information will be shared between the DHSC and companies.

Richard Torbett, Chief Executive of the ABPI said: “We are pleased to have agreed the full details of the new voluntary scheme which will allow the sector to grow faster than it has for a decade, while also lowering rebate rates for many medicines over time. The agreement holds important commitments to review and improve the commercial environment for branded medicines, as well as providing important clarity on how the scheme will work.”

To support companies in making their choice on which scheme to join, the ABPI will shortly provide further explanatory materials, including how to determine if a medicine is older or younger, how the reference price is determined, how the medium-sized company exemption will operate, and the timing of data submission and payments.