UK House of Commons Health and Social Care Committee Makes Broad Pricing Information Request Regarding Orkambi®
- 13/11/2018
- Articles
The Chair of the Health and Social Care Committee of the UK House of Commons wrote on 7 November 2018 to Vertex, the National Health Service (“NHS England”) and the National Institute for Health and Care Excellence (“NICE”) to request pricing information regarding the cystic fibrosis medicine Orkambi® (see attached letters). The move follows two-and-a-half years of unsuccessful pricing negotiations between these parties.
The request seeks details of all initial and subsequent offers which Vertex made to both NICE and NHS England. It is also looking for “[e]vidence in support of [Vertex’s] public statement that [it] ha[s] offered the NHS in England the lowest price for [its] drugs of any country in the world.” The committee makes it clear that it wishes to receive “specific pricing and commercial arrangements [Vertex] ha[s] entered into in each country where Vertex sells its medicines.”
The Chair adds that the Committee, which expects an answer by 30 November 2018, “will publish any documents received”. Significantly, the request also indicates that no publication will occur if NICE, NHS England and Vertex reach an agreement before that date.
By seeking access to confidential commercial information that extends beyond UK borders and threatening to divulge same, the UK authorities clearly try to convince Vertex to cut protracted discussions short and make a deal. The pressure brought to bear on Vertex mirrors in part the twin pressures felt by these same authorities that have to observe budgetary constraints while taking care of the needs of a vocal patient constituency.
This development would seem to reflect attempts made elsewhere in Europe to curb the confidential character of pricing negotiations for expensive medicines. It also serves as a reminder that business should be careful in its dealings with patient organisations in order to avoid a backlash by authorities which face patient expectations which these authorities consider unrealistic.
