§ Mr. Spearingasked the Secretary of State for Social Services if he is satisfied that there is no unjustifiable differential between costs to the National Health Service of drugs and their equivalent cost on world markets.
§ Mr. Kenneth ClarkeYes. Medicines supplied to the NHS are subject to the pharmaceutical price regulation scheme under which prices agreed allow the supplier to recover reasonable costs and earn reasonable profits. Within its profit ceiling a company is generally free to decide the prices of individual products. Prices can and do vary between countries for this and other reasons.