§ Mr. TrotterTo ask the Secretary of State for Health (1) what was the number of price reductions of drugs under the pharmaceutical price regulation scheme in each of the last two years. [14043]
(2) what was the total amount repaid to his Department under the pharmaceutical price regulation scheme in each of the two most recent years for which figures are available. [14044]
§ Mr. MaloneUnder the pharmaceutical price regulation scheme, if a company's profits are regarded as above target, a company has the option of either reducing its prices to bring the return back in line with its target or making a repayment of the excess to the department. Almost all companies choose to make repayments.
There have been no examples of price reductions arising from profits above permitted targets under the pharmaceutical price regulation scheme in the last two 642W years. Information on price reductions will be included in the Department of Health's future reports to Parliament on the PPRS.
Information on repayments of profits above target, or of excess sales promotion, for the 1992 round of annual financial returns was published in the first report to Parliament on the PPRS in May 1996. The figure given there of £25.4 million has now become £25.9 million, following further negotiations with companies. Information on repayments for the 1993 round of annual financial returns will be published in the spring in the Department of Health's second report to Parliament on the PPRS. Negotiations with a number of pharmaceutical companies are continuing and the overall position for 1993 is not finalised.