The committee met after an appeal against the final appraisal determination for this appraisal, which was upheld. The appeal panel had concluded that 'the 2014 PPRS should have been taken into account, or, alternatively and sufficiently for this appeal, that the possibility of the PPRS being relevant had not been sufficiently considered and its irrelevance established'. The committee noted that, after this appeal, NICE had sought a view from the Department of Health about whether it should take account of the payment mechanism set out in the 2014 PPRS agreement in its technology appraisals. In the Department of Health's view, 'the 2014 PPRS does not place obligations on, nor create expectations of, NICE other than where these are explicitly stated in that agreement'. The Department of Health noted paragraph 4.9 of the PPRS which states that 'the basic cost-effectiveness threshold used by NICE will be retained at a level consistent with the current range and not changed for the duration of the scheme', and stated that 'the PPRS contains no other provisions which require NICE to adopt a particular approach or method for technology appraisals, or to make an adjustment to its considerations to take account of the payment arrangements set out in the scheme agreement'. The committee understood that, in response to the appeal decision, NICE developed a position statement about the relevance of the 'PPRS payment mechanism' of the 2014 PPRS to assessing the cost effectiveness of new branded medicines. This took into account the views obtained from the Department of Health. It was subsequently refined in a targeted consultation with the Department of Health, the Association of the British Pharmaceutical Industry (ABPI), and NHS England. The NICE position statement concluded that 'the 2014 PPRS payment mechanism should not, as a matter of course, be regarded as a relevant consideration in its assessment of the cost effectiveness of branded medicines'. The committee noted the response from the ABPI, an association with 57 pharmaceutical company members, which stated that the ABPI had no comments on the substance of the position statement, and welcomed the statement. The committee also noted the ABPI comment that: 'Indeed, any other interpretation may increase the risk of legal challenge from other companies'. The committee was, however, aware that the company continued to believe that it was 'unfair to disregard the consideration of PPRS payments within the appraisal process' and was 'deeply disappointed' by the conclusion of the position statement. Company representatives at the meeting stated that the company's opinion was that the NICE position statement should state that 'the 2014 PPRS payment mechanism should, as a matter of course, be regarded as a relevant consideration in its assessment of the cost effectiveness of branded medicines', and that it should apply to all technology appraisals, not just to the appraisal of trastuzumab emtansine. The committee concluded that the 2 sole negotiators for the PPRS, that is the Department of the Health and the ABPI, fully supported the NICE position statement, but that the company disagreed with it.