§ Dr. Roger Thomasasked the Secretary of State for Social Services if he will set up a working party into the desirability of extending the practice of generic prescribing by medical practitioners; and if he will consider publishing for the latest financial year figures and percentages of the main drug producing firms that are set aside for (a) research and development and (b) sales and promotion.
§ Dr. VaughanInformation about expenditure of individual pharmaceutical companies is confidential between the Department and the company concerned and could not be divulged without a breach of confidence.
Total research and development expenditure by pharmaceutical companies included in the cost of medicines sold in the United Kingdom, as disclosed in audited annual financial returns submitted under the Pharmaceutical Price Regulation Scheme for the calendar year 1978, the last year for which complete returns are available, was £81.8 million—12 per cent. of sales. This includes returns from companies which do not undertake research or undertake only limited development work. Sales promotion expenditure in 1978 was £78 million—11.4 per cent. of sales. A phased restriction of the amount of sales promotion expenditure accepted in the prices of medicines took effect from 1 April 1977 as part of a reduction in public expenditure. The restriction, which was implemented in stages, was designed to reduce the amount accepted from about 14 per cent. of the value of the industry's sales to 10 per cent. by 1979–80 and has now been completed.