§ Mrs. Renée Shortasked the Secretary of State for Social Services when he expects his discussions on promotional spending and profit levels to be concluded; and what reductions in the National Health Service drug bill he estimates will result.
§ Mr. Kenneth ClarkeWe expect the discussions to be concluded shortly. We will then make a statement.
§ Mr. Formanasked the Secretary of State for Social Services how much of the recent £25 million cut off the National Health Service drugs bill was made up of the 2.5 per cent. reduction in the price of drugs supplied to the National Health Service and how much of profits forgone by the pharmaceutical companies.
§ Mrs. Dunwoodyasked the Secretary of State for Social Services what proportion of the £25 million reduction in pharmaceutical costs to the National Health Service comes from (a) retailers, (b) wholesalers and (c) manufacturers.
§ Mr. Kenneth ClarkeAbout half of the recent cut in the NHS drug bill will be contributed by the 2½ per cent. average reduction in drug prices. It is estimated that of the total saving from that price cut and the price freeze that has followed it, approximately 83 per cent. will come from pharmaceutical company profits, 5 per cent. from reimbursement of community pharmacists and 12 per cent. from the discount allowed by companies to pharmaceutical wholesalers.