Dispute Panel Upholds DHSC’s Application of 2024 VPAG to Haleon Despite Erroneous Membership Application
A dispute resolution panel constituted under the 2024 Voluntary Scheme for Branded Medicines Pricing, Access and Growth (“the 2024 VPAG”)—a UK government agreement with the pharmaceutical industry to manage NHS spending on branded medicines while supporting access and innovation—determined that the Department of Health and Social Care (“the DHSC”) had acted correctly in applying the 2024 VPAG to Haleon UK Ltd, even though the company had mistakenly applied to join it.
Haleon argued that it had intended to remain in the default statutory scheme, that VPAG membership did not suit its business, and that its membership should therefore be cancelled. The DHSC had declined to do so before the end of the calendar year, in line with the provisions of the 2024 VPAG. Before the panel, the DHSC argued that Haleon was not entitled to evade the obligations it had incurred by expressly applying to join the scheme, in circumstances where the alleged mistake had resulted from its own failure to exercise reasonable care.
The panel concluded that the DHSC had been right to treat the 2024 VPAG as applying to Haleon until the end of the relevant calendar year. It found that a failure to exercise due diligence when applying to join the scheme did not entitle a company—under section 261 of the NHS Act 2006—to exit the scheme other than in accordance with the terms of the 2024 VPAG. The panel did not consider that public law arguments fell within its remit.
The decision is available here.
Iulia Stinga represented the DHSC.
