To make its point, drugmakers are releasing a report today that points out the industry contributed more than $8 billion in net exports to the UK economy last year.

In its annual review, the Association of the British Pharmaceutical Industry highlights that the sector invested about $6.6 billion in research and development in 2006, and generated some $27 billion in exports, balanced by nearly $20 billion in imports.

The move comes as the industry intensifies its lobbying against proposals by the Office of Fair Trading to overhaul pharmaceutical price regulations so companies will be forced to evaluate the benefit to the patient and the National Health Service when they set the prices.

Richard Barker, ABPI director-general, calls the OFT’s proposals “dangerous and anti-innovative…The OFT has failed to understand the nature of scientific progress is step by step,” and argues that without a commercial incentive to introduce incremental improvements, more significant breakthroughs in new medicines would not take place.

He said he did not argue with the OFT’s general principle of ensuring “value-based pricing” for medicines based on their relative cost and benefit to the health system, but that the idea was difficult to implement in practice.

Barker adds that drugmakers won’t threaten to leave the UK, but over time it is likely that future investments would take place in other countries offering greater incentives to innovation. “In an ideal world we agree that price should reflect value, but to say that, glosses over a number of very significant differences and a very substantial error bar in assessment.” he says.

Full story in The Financial Times (subscription required).[tags]Association Of British Pharmaceutical Industry, Office Of Fair Trading[/tags]