§ Mr. Carter-Jonesasked the Secretary of State for Social Services (1) if he will list his powers (a) for negotiating drug prices, and (b) where such prices are excessive, to exercise unilateral price reduction; and if he will make a statement;
(2) if he will seek to renegotiate the price charged to the National Health Service for the drug cyclosporin for use as prophylaxis in the treatment of grafts and transplants.
§ Mr. Kenneth ClarkeWe exercise control over the price of National Health Services medicines through the non-statutory pharmaceutical price regulation scheme. This operates on the basis that since the Health Departments are effectively monopoly buyers of almost all prescribed medicines sold in the United Kingdom the price of individual products in a company's range is not for practical purposes significant if the overall costs and profits of the company are reasonable. We therefore set a target rate of return for sales of the whole product range of each company. It follows that if the price of cyclosporin is reduced the price of other medicines which the company supplies to the National Health Service might increase provided overall profit did not exceed the amount allowed.
Under section 57 of the National Health Service Act 1977 the Secretary of State may by order provide for controlling maximum prices for medical supplies, including medicines. It has not so far been found necessary to use these powers.
§ Mr. Carter-Jonesasked the Secretary of State for Social Services what is the most expensive drug prescribed under the National Health Service.
§ Mr. Kenneth ClarkeAccording to records held at the Prescription Pricing Authority the most expensive drug currently dispensed against NHS prescriptions in England is Methotrexate injection, for which the price of a 200 ml vial is £369.15.