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between DHSC, NHS England, and the ABPI (Association of the British
Pharmaceutical Industry). This scheme covers branded medicines and also
includes manufacturers and suppliers of branded generic and biosimilar
medicines.
VPAS sets a cap on the total allowed sales value of branded medicines to
the NHS each year. The cap grows at an agreed rate of 2% per annum, and
medicine sales above the cap are paid back to the DHSC via a levy. 2019 was
the first calendar year of VPAS, and the repayment percentage was 9.6%; this
has increased year on year, reaching 26.5% in 2023.
This meant that manufacturers had to consider how profitable it is to keep
investing in a particular product depending on competition and market
conditions or whether to divest.

Moving into 2024, VPAS has been replaced by VPAG (The Voluntary Scheme
for Branded Medicines Pricing, Access, and Growth). This has been agreed
upon by the Government, NHS England, and the ABPI and will run for five
years until 31st December 2028.
VPAG has significant implications for the market access of branded
medicines in the UK. The scheme creates more incentives and
rewards for the pharmaceutical industry to launch and market
innovative medicines in the UK.

What This Means for Dispensing
Doctors

You may be wondering why I am telling you this. What has VPAG
got to do with me and my dispensary? These changes will impact
the viability and availability of products that you purchase on
a day-to-day basis. You may see manufacturers enhance or
reduce discounts, divest, or discontinue products. Alternatively,
companies may also invest in different products and therapy
areas, leading to new products entering the market, which could
result in new MDS for dispensing doctors.
If dispensing doctors are not aware of certain MDS changes, you
may be prescribing and dispensing a product that is no longer
profitable to the practice, potentially resulting in significant losses
to the dispensary. Branded medicines generally cost more than
generics, meaning the amount of loss incurred by dispensing a
product that has lost an MDS deal can far outweigh any savings
made on generic purchases.
It is vital to maintain regular reviews with your DDAM, who will be able
to inform you of any MDS changes and assist you in maximising your
profitability. PSUK will also communicate any MDS changes via the
monthly top tips in the PS magazine and a monthly email update. If you
are not receiving this, make sure you speak to your account manager to
get added to the email list.

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or call us on 01904 558 350 Dispensing Doctor Account Manager’s Top tips | PS Magazine 33

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