HC Deb 27 November 1986 vol 106 cc349-50W
Mr. Cohen

asked the Secretary of State for Social Services what is the number of (i) British companies and (ii) international companies supplying drugs to the National Health Service which are able to increase their profit targets because they employ United Kingdom research staff; how many additional staff are involved; and what is the additional cost to the National Health Service in each category for the current financial year.

Mr. Newton

The number of United Kingdom research staff employed is not a factor which affects the profit targets of pharmaceutical companies supplying drugs to the National Health Service.

Mr. Cohen

asked the Secretary of State for Social Services what is the number of (i) British companies and (ii) international companies which currently supply drugs to the National Health Service; how many staff in his Department scrutinise their accounts for excess profits from such trade with the National Health Service; and if he will make a statement.

Mr. Newton

The total number of companies supplying drugs to the National Health Service exceeds 200. Over 60 companies supply drugs in sufficient quantities to require the submission of full financial returns under the pharmaceutical price regulation scheme. Nine of these major companies are owned wholly or mainly in the United Kingdom, although several of these would generally be regarded as international companies. Seventeen administration group staff and accountants are employed whole time in the operation of the PPRS.

Mr. Cohen

asked the Secretary of State for Social Services what was the cost in the last financial year, and the estimated cost in (i) the current financial year and (ii) the next financial year of the supply of drugs to the National Health Service, and if he will breakdown these figures by (a) British companies and (b) international companies providing these drugs.

Mr. Newton

The cost of drugs for the National Health Service in England in 1985–86 was £1,574 million. The provisional estimate for 1986–87 is £1,670 million. The other information requested by the hon. Member is not available. For the companies providing full financial returns under the pharmaceutical price regulation scheme in 1984, the proportion of National Health Service sales which were by companies wholly or mainly owned in the United Kingdom was estimated to be about one third of the total.