§ Mr. RedwoodTo ask the Secretary of State for Health what plans he has to reduce the costs of procuring medicines for the NHS. [51052]
§ Mr. Milburn[holding answer 17 July 1998]: We intend to approach the procurement of medicines with a view to obtaining effective health care for patients at a cost which is fair.
§ Mr. RedwoodTo ask the Secretary of State for Health when he last reviewed the pharmaceutical pricing scheme for the NHS. [51046]
§ Mr. Milburn[holding answer 17 July 1998]: The prices of branded medicines sold to the National Health Service are governed by the Pharmaceutical Price Regulation Scheme, a voluntary agreement between the health departments and the pharmaceutical industry, represented 634W by the Association of the British Pharmaceutical Industry. The last full review of the scheme was at the negotiation of the current agreement, which runs from 1 October 1993.
§ Mr. RedwoodTo ask the Secretary of State for Health what is the current rate of return used in calculating drug prices for the NHS. [51049]
§ Mr. Milburn[holding answer 17 July 1998]: The Pharmaceutical Price Regulation Scheme (PPRS) sets target rates of return for companies supplying branded medicines to the National Health Service around which there is a margin of tolerance. The prices of medicines reflect this indirectly. The overall return on capital (outturn) for companies' PPRS business was 18.1 per cent. for 1994 (the latest year for which full figures are available); further details are contained in the Second Report to Parliament on the PPRS (December 1997) copies of which are available in the Library.