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<p>The approach to assessing the potential impacts on investment within the statutory
scheme’s impact assessment followed well established precedent and is in-line with
the Green Book paragraphs 6.5 and 6.6. As such the impact assessment considers spill-over
benefits of investment, with a literature review suggesting an estimated mean benefit
of 34% of the overall investment, but does not account for these within the net present
value calculation due to investment being one of several possible company responses
to change in profitability.</p><p>We are in the process of analysing the responses
provided to the consultation on this statutory scheme and will update on our preferred
policy approach later this year.</p><p>Regarding alternative deployment of resource,
by controlling growth in the cost of medicines we ensure value for money for the taxpayer
and enable the National Health Service to continue investing in patient access to
new medicines. Any additional spending on medicines may come at the cost of other
equally (or more) effective healthcare spending.</p>
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