HL Deb 19 June 1986 vol 476 c1160WA
Lord Northfield

asked Her Majesty's Government:

What is their estimate of the proportion of the NHS medicine bill through community pharmacists that is constituted by products that are subject to the Product Licence (Parallel Imports) scheme; what is their estimate of the profits being made by certain pharmacy contractors through being reimbursed at the higher NHS price; and, following the Court of Appeal judgment on the "High Discount Endorsement" scheme, what new proposals they have to recoup these profits without disadvantage to other pharmacy contractors.

Baroness Trumpington

We have no firm data on the extent to which the National Health Service drugs bill is affected by the Product Licence (Parallel Import) scheme or the level of "unintended" profits being made by those pharmacists who deal in parallel imported drugs. Estimates from various sources suggest that parallel imports account for only a small fraction of the total drugs bill. The Government are still considering the Appeal Court judgment against the High Discount endorsement scheme. But it has been agreed with the Pharmaceutical Services Negotiating Committee that parallel imports should be identified in the forthcoming discount inquiry. When this information is available, consideration will be given to modifying the reimbursement system to ensure that any new arrangements are fair to all concerned.

Lord Northfield

asked Her Majesty's Government:

What is their estimate of the value of production of medicines that is being transferred from the UK to Continental locations as a result of so-called parallel importing.

Baroness Trumpington

As my right honourable friend the Minister for Health said on 3rd June, firm figures about parallel imported medicines dispensed under the National Health Service are not available, but unofficial estimates have put the value of such imports at between £80 million and £90 million. We have no positive information on the value of potential United Kingdom production lost to parallel importing but it is likely to be somewhat lower than the £80 million—£90 million estimated value.