NICE to have crucial role in value-based pricing of medicines

The National Institute for Health and Clinical Excellence (NICE) is set to take responsibility for assessing the value of branded medicines when new pricing arrangements are introduced next year.

Last week the Government announced that the body will work with the Department of Health and other stakeholders to plan how it will carry out the important job of assessing the benefits and costs of medicines. The aim is to ensure that the NHS buys new drugs at a cost which is closely linked to their value to patients and society.

NICE already carries out various drug evaluation processes but the new responsibility will widen the body’s scope.

Health Minister Lord Howe said: “We are delighted to announce the central role NICE will take in assessing the value of new medicines. “This will allow us to draw on NICE’s world-leading expertise as we develop the value-based pricing scheme.”

Following the announcement, chief executive of NICE Sir Andrew Dillon said: “We welcome the opportunity to take the central role in value based pricing and we look forward to working with the Department of Health and our stakeholders in developing the methods and processes for the new system.”

The announcement, which was made as an official response to a report published in January by the Health Select Committee on the future role of NICE, comes as NICE prepares to extend its remit to include social care, as well as the NHS and public health.