NICE should relax pricing rules, says Kennedy report

NICE should relax its rules on pricing for drugs that offer the most benefits to patients, an independent study has concluded.

The proposal forms part of Sir Ian Kennedy’s report into the value of new innovative health technologies, which was commissioned in February.

Sir Kennedy suggested that the ‘price ceiling’ should be raised for two or three years for the most innovative new treatments, although he also warned that this will mean a reduced budget for other drugs.

“We should consider offering an incentive to the industry and to others to say OK if you’re doing something which really brings cutting edge technology to patients you should have some financial incentive for a limited period of time so that you can make slightly more money which you can put back into research,” he said.

“You will have to drop the threshold – how much you are prepared to pay for other drugs. That is the quid for the quo that the industry will have to deal with.”

In reaching his conclusions, Sir Kennedy considered submissions from the pharma industry, patient groups and health service managers.

The ABPI has welcomed the suggestions. A spokesperson said: Sir Ian Kennedy has recognised the need for NICE to change – for it to be more transparent, to foster innovation, and to take greater account of wider health benefits.”

Similar proposals were made by the government last week, in its ‘innovation pass’ suggestion, whereby innovative treatments for small patient groups will be able to temporarily bypass NICE assessment.

NICE has said it will respond to the proposals in September, followed by a three-month public consultation.

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