Freedom of pricing
Generic manufacturers and suppliers have freedom of pricing in the UK, with the government relying on competition to keep prices low and only intervening in pricing if competition can be seen not to be working. Our competitive system has led to a vibrant multi-source market, minimising the scope for shortages and delivering the lowest prices in Europe.
Safeguarding access and sustainability
In the UK, generic medicine manufacturers and suppliers enjoy freedom of pricing, a principle that underpins their role as the backbone of NHS prescribing. Unlike branded medicines, generics are not tied to rigid price controls. This flexibility allows manufacturers to compete openly, ensuring patients benefit from affordable treatments and the NHS achieves maximum value for money.
- Driving affordability: Competition between suppliers keeps prices low, saving the NHS billions each year.
- Supporting resilience: Pricing freedom encourages multiple suppliers to enter the market, strengthening supply security and reducing the risk of shortages.
- Fair reimbursement: Pharmacies are reimbursed through the Drug Tariff, which reflects average market prices and ensures sustainability across the supply chain.
- Protecting the system: Government powers under the Health Service Medical Supplies (Costs) Act 2017 provide a safeguard against excessive prices, ensuring public confidence in the system.
Market freedom
This balance of market freedom and regulatory oversight is vital. It empowers the generics sector to deliver consistent savings, expand patient access and reinforce the NHS's long‑term sustainability.
The system operates successfully in the UK, providing a sustainable market that encourages competition and supports resilience in supply.
Freedom of pricing is not just an economic principle – it is a cornerstone of healthcare equity and resilience in the UK.
Latest industry news
Partnership will revive inactive licences to solve critical medicines shortages
By Jeremy Durrant