§ Mr. Clark Hutchisonasked the Minister of Health whether he has now reached agreement with the Association of the British Pharmaceutical Industry for a new scheme for the regulation of drug prices.
§ Mr. BarberYes. The new scheme has effect for three years from 1st July, 1964, and thereafter is subject to six months notice by either side. The new scheme is on the same general lines as the earlier one but there are a number of important modifications.
The scheme has been extended in scope to include all medical specialities prescribed by general practitioners instead of rather less than nine-tenths as formerly.
The importance of research is recognised by two changes: an increase from three to four years in the period of freedom from control from preparations resulting from substantial and original research and a reduction to two years of the free period for other preparations; and a specific allowance for research in the calculation of the maximum prices of preparations other than those which qualify for the export criterion.
291WThe scope for direct negotiation at the Ministry's option in relation to widely-used drugs qualifying for the export price criterion has been extended in two ways: first by a reduction of the limit at which the option may be exercised in the case of patented preparations, and second by the introduction of a new option at a lower limit in respect of unpatented preparations marketed in competition with exact unbranded equivalents. There is provision for retrospective adjustment in certain cases.
The new scheme, like its predecessors, provides that the price of any preparation outside the free period should not be increased without the approval of the Ministry.
The Association has agreed to use its good offices with its members to ensure the prompt submission of all relevant information necessary for the purpose of negotiations under the scheme.