delete The Branded Health Service Medicines (Costs) (Amendment) Regulations 2022
Amendment to the Branded Health Service Medicines (Costs) Regulations 2018, modifying payment percentages and applicable periods for the statutory scheme requiring pharmaceutical companies to pay a percentage of branded medicines revenue to the NHS. Key changes include adjusting the payment percentage from earlier rates to 14.3% for July-Dec 2022, 24.4% for 2023 onwards, and 17.7% for the same period in paragraph (1B).
This regulation imposes mandatory payment obligations on pharmaceutical companies supplying branded medicines to the NHS, effectively a sector-specific levy. Such cost extraction schemes distort market incentives, increase administrative burden, and may drive investment away from the UK pharmaceutical sector. The scheme creates uncertainty through frequent retrospective amendments to payment percentages, harming business planning. While it raises NHS revenue, this could be achieved more efficiently through general taxation rather than targeted extraction from one industry, which risks creating monopolistic dynamics and reducing supply of life-saving medicines to the UK market.