§ 48. Mr. Pavittasked the Secretary of State for Social Services what was the total amount spent by the National Health Service in purchasing Ampicillin for the year ended 31st December, 1968 and what percentage of the total market of broad spectrum antibiotics this represents.
§ The Under-Secretary of State for the Department of Health and Social Security (Mr. Julian Snow)It is not Government policy to disclose information of this kind relating to the product of an individual manufacturer.
§ Mr. PavittIs my hon. Friend aware that nearly 50 per cent. of this market is held by one firm, and as it has had an increase of £5 million in its profits and the profit on its equity capital has risen from 31 per cent. to 36 per cent., will he now consider issuing a compulsory licence under Section 41 of the Patents Act?
§ Mr. SnowI should not like to comment too freely at the moment on the financial structure of this company. But perhaps my hon. Friend should know that, since its introduction in 1961, there have been nine reductions in the price of this particular drug, two of those reductions being in 1968. We spend about £15 million a year on broad spectrum antibiotics. Doctors have been alerted to the high cost of this important drug so they may judge in a particular case whether the advantages of Ampicillin are so great that it should be prescribed in preference to a cheaper drug.
§ Mr. DeanDoes the Minister agree that this drug makes an important contribution to the export record of the pharmaceutical industry?
§ Mr. SnowYes, as do many others. Much is due to the use and practice of the drug in the National Health Service.