Pharmacaeutical companies that are still undecided about whether to remain in the UK’s Voluntary Scheme for Branded Medicines Pricing, Access and Growth (VPAG) now have a little extra time. The ABPI and UK government have agreed to extend the deadline for organisations to submit notice to leave the scheme by two additional weeks – the new deadline is 14 November 2025.
According to the ABPI’s announcement, any company that fails to signal its intention by that date will automatically remain enrolled for all of 2026 under VPAG. Conversely, companies that choose to exit will then be subject to the Statutory Scheme for branded medicines – a regime which currently carries higher pay-back rates and less commercial certainty.
Mounting frustration
The VPAG scheme itself has attracted sustained criticism from industry. As Richard Torbett, Chief Executive, ABPI, recently warned: “The UK has a world-class science base … but without a more competitive environment for investment, we risk losing out to other countries making bold moves to attract internationally mobile investment.”
Industry insiders say the UK’s commercial environment for life sciences is already challenging. In a recent EMJ GOLD roundtable, Konrad Dobscheutz, Founder, Leap Advisory & Intelligence, lamented: “The commercials to run a life sciences company here are bleak: close to 23% government claw-back (VPAG), 25% corporation tax and one of the highest employment costs in the G7.”
Uncertainty over future rates
Importantly, the actual rebate rates for VPAG in 2026 and 2027 remain undetermined. According to government guidance, those rates will depend on measured sales growth up to Q3 2025 and Q3 2026, meaning that companies remain in a state of uncertainty.
In the meantime, the alternative Statutory Scheme is already signalling tougher terms: the repayment rate for newer branded medicines was effectively doubled mid-2025 (to ~31.3 %) and is averaging ~23.4 % for 2025, with forecasts of ~24.3 % for 2026 and ~26.0 % for 2027.
The message to pharma companies is clear: if you do not act by 14 November, you will be committed to VPAG for 2026 – but staying may mean high and unpredictable rebates; exiting means entering a scheme with even higher and less predictable costs. The clock is ticking.
