Monday, June 04, 2007

NICE backed cancer-drug refund scheme

NICE backed the scheme that the NHS should pay for the bone marrow-cancer drug, Velcade, which costs about £18,000 per patient, only when it worked. Initially, NICE recommended that the drug should not be made available on the NHS, but changed its mind following an appeal by the drugmaker, Janssen-Cilag and its proposal of a refund scheme.

Last February, the OFT said in a report that drug companies are paid hundreds of millions of pounds too much by the NHS for branded medicines but it does not reflect the value of those drugs to patients.

OFT recommended value-based pricing would give companies stronger incentives to invest in drugs for those medical conditions where there is greatest need.

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