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 has drawn 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 leaders share this concern. In a recent roundtable, Konrad Dobscheutz, Founder of Leap Advisory & Intelligence, described the UK’s life sciences environment as “bleak,” citing a 23% government clawback under VPAG, 25% corporation tax and some of the highest employment costs in the G7.
Uncertainty over future rates
Adding to industry frustration, the rebate rates for 2026 and 2027 under VPAG will not be undecided until after the deadline. Government guidance indicates that rates will depend on measured sales growth up to Q3 2025 and Q3 2026, leaving companies facing ongoing uncertainty about future liabilities.
Meanwhile, the Statutory Scheme appears set to become even tougher. The repayment rate for newer branded medicines was effectively doubled in mid-2025 to around 31.3%, averaging 23.4% for 2025, with forecasts of 24.3% in 2026 and 26.0% in 2027.
The message to pharma companies is clear: those that fail to act by 14 November will be locked into VPAG for 2026. Staying could mean facing high rebate rates; exiting could lead to even greater costs under the Statutory Scheme. Either way, the clock is ticking.
