3.1.2 Competitive pricing and contract coverage
There are robust mechanisms to ensure the NHS obtains competitive prices for medicines
whilst ensuring that the UK remains a commercially attractive marketplace for pharmaceutical
companies. Strategies employed to ensure that this balance is maintained include
• Quarterly benchmarking of branded medicine prices by CMU, PMSG and the devolved
nations
• Use of a mid-contract CMU price review mechanism for branded medicines to match to
the best price identified through benchmarking
• Horizon scanning to ensure contracts are not awarded just before a significant change in
the market price for example within a few months prior to patent expiry
• Contractual obligation for suppliers of generic medicines to reimburse Trusts if their
contracted line cannot be supplied and as a consequence Trusts have to pay a higher
price from an alternative supplier. A procedure for managing off contract claims for
generic medicines has been agreed with the British Generic Manufacturers Association.