The OFT has recommended that the Pharmaceutical Price Regulation Scheme (PPRS) should be reformed, to deliver better value for money from NHS drug spend and to focus business investment on drugs that have the greatest benefits for patients.

The study recommends that the current 'profit cap and price cut' scheme, where companies are free to set their own prices within very broad profit constraints, be replaced with a patientfocussed value based pricing scheme, in which the prices the NHS pays for medicines reflects the therapeutic benefits they bring to patients. This would enable the NHS to obtain greater value for money from its existing drug spend. The OFT estimates that it would release in the region of £500 million of expenditure that could be used more effectively, giving patients better access to medicines and other treatments which they may currently be denied.