[Ip-health] GSK chief calls for new thinking over NHS drugs pricing system

[Michelle Childs]

http://business.timesonline.co.uk/article/0,,9068-2459336,00.html
The Times November 18, 2006

GSK chief calls for new thinking over NHS drugs pricing system
By Robin Pagnamenta

The chief executive of GlaxoSmithKline has called for reform of the way in
which the Government negotiates drug prices for the NHS. J. P. Garnier is
seeking the introduction of a new pricing framework that would allow
pharmaceutical firms to raise prices charged to the NHS once the efficacy
and cost-effectiveness of a new medicine is understood.

Dr Garnier said that Britain=92s drugs regulator, the National Institute fo=
r
Health and Clinical Excellence (NICE), =93needs to improve its processes=94=
.
Drugs=92 prices are negotiated with the Department of Health using guidance
on cost-effectiveness from NICE based on data from a few thousand patients
involved in Phase III clinical trials prior to regulatory approval.



There is no opportunity to renegotiate prices once a drug enters
widespread clinical use and more information becomes available about it.
Dr Garnier said it would be preferable for NICE to evaluate
cost-effectiveness =93after a drug has been launched in the general
population=94. He said: =93Only then can you do the real research and
epidemiology.=94








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