§ Mr. SimsTo ask the Secretary of State for Health what is the current turnover threshold below which companies who participate in the pharmaceutical price regulation scheme are exempt from the requirement to submit detailed accounts and price structure analyses to his Department; when that figure was fixed; what plans he has to raise the threshold; and if he will make a statement.
§ Mrs. Virginia BottomleyThe pharmaceutical price regulation scheme (PPRS) is a voluntary agreement between the Government and the Association of the British Pharmaceutical Industry (ABPI). It applies to all companies supplying branded medicines to the National Health Service which are prescribed by medical or dental practitioners.
Under the terms of the agreement, companies with annual sales to the NHS of over £4 million are asked to supply the full details required by the annual financial returns specified in the scheme. Companies with annual sales to the NHS of between £500,000 and £4 million are asked to provide copies of their audited accounts and of a statement giving a breakdown of turnover between NHS sales, export sales of NHS medicines and other sales, plus details of sales promotion costs. Companies with annual sales to the NHS not exceeding £500,000 are exempt from supplying financial information except when specifically called for.
These threshold levels were established when the current PPRS was agreed with the ABPI in 1986. The scheme runs until 1 October 1992, but will continue beyond that if neither party gives due notice of termination. The Government are therefore now considering whether any changes to the current scheme are needed. The possibility of raising thresholds is one of the points which could be discussed with the ABPI.