§ Mrs. EllmanTo ask the Secretary of State for Health what progress is being made on the re-negotiation of the Pharmaceutical Price Regulation scheme; and if he will make a statement. [55620]
§ Mr. MilburnWe are currently holding discussions with the Association of the British Pharmaceutical Industry, the trade association for the pharmaceutical industry, about the future of the Pharmaceutical Price Regulation Scheme—the system for regulating the prices of branded prescription medicines supplied to the National Health Service.
We are not proposing to make any detailed statement about changes to the PPRS until those discussions have been concluded, and until a decision about the future has been taken.
§ Mrs. EllmanTo ask the Secretary of State for Health if he will make a statement on the purchasing policies of NHS hospitals in relation to drugs and the pricing policies of drugs companies in supplying NHS hospitals. [55624]
§ Mr. MilburnAs well as purchasing medicines on an individual basis, National Health Service hospitals in England pool their purchasing power, through geographical pharmacy contracting and purchasing groups, to meet their medicines requirements by competitive tender. For the most part, these arrangements are maintained and serviced by the NHS Supplies Authority.
The prices of branded prescription medicines are also indirectly controlled by the Pharmaceutical Price Regulation Scheme which regulates the overall profits which companies can make from the sales of medicines to the NHS.
§ Mrs. EllmanTo ask the Secretary of State for Health what plans he has to investigate the practice of companies which produce branded drugs subject to price controls selling on those drugs to new companies which are exempt from such controls. [55622]
§ Mr. MilburnThe Pharmaceutical Price Regulation Scheme (PPRS) applies to all companies which sell branded prescription medicines to the National Health Service. It requires that any price increases should be agreed with the Department of Health. This includes any price change to a product on or subsequent to acquisition by another company and applies to all companies regardless of size.
In some recent cases, increases took place without the Department's agreement, and these are being investigated.
The current PPRS is being reviewed, and we are determined that a new scheme should ensure full compliance.
§ Mrs. EllmanTo ask the Secretary of State for Health what proportion of NHS drugs spending was attributable to(a) branded drugs, (b) branded drugs which are subject to PPRS and (c) generic drugs, and what were the actual amounts spent in each of these areas, in each of the last five years for which the information is available. [55621]
67W
§ Mr. MilburnThe information requested is given in the table.
The net ingredient cost and the proportion of the total net ingredient cost of branded and generic drugs dispensed in the community, 1993 to 1997 England Net ingredient cost(£ million) Year Branded drugs Generic drugs % Branded of total % Generic of total 1993 2,631.0 341.6 88.5 11.5 1994 2,723.8 478.3 85.1 14.9 1995 2,882.4 584.9 83.1 16.9 1996 3,120.1 660.5 82.5 17.5 1997 3,234.1 896.7 78.3 21.7 Notes:
1. All licensed branded drugs, including branded generics, are subject to the pharmaceutical price regulation scheme. Branded generics are included in the data for branded drugs
2. The data are from the prescription cost analysis system and cover all prescriptions for drugs dispensed in the community (excludes dressings and appliances), i.e. by community pharmacists, dispensing doctors, and personal administration. The classification of drugs is based on the class of drug for which the contractor is reimbursed.
3. The net ingredient cost refers to the cost of the drug before discounts and does not include any dispensing costs or fees. It does not include any adjustment for income obtained where a prescription charge is paid at the time the prescription is dispensed or where the patient has purchased a pre-payment certificate.