§ Mr. SwayneTo ask the Secretary of State for Health which drugs will be reduced in price and by how much, consequent upon his agreement with NHS suppliers. [94029]
§ Mr. DenhamUnder the 1999 Pharmaceutical Price Regulation Scheme agreed with the Association of the British Pharmaceutical Industry, companies supplying branded medicines to the National Health Service to a value of more than £1 million per annum are required to reduce their prices by 4.5 per cent. from 1 October 1999. As an alternative to an across the board reduction, they are allowed to modulate the prices of these medicines by reductions that equate to an overall level of 4.5 per cent. Companies themselves decide on a commercial basis which medicines should be reduced in price and by how much and supply this information to the Prescription628W Pricing Authority. The Department monitors the sales of medicines to determine whether the modulation have achieved the necessary reduction.
A list of the price reductions notified to the Department at the outset of the scheme has been placed in the Library. It should be noted that companies can remodulate their prices following the initial reduction. Up to date information on the prices of medicines is maintained in the pharmaceutical trade press, copies of which are in the Library.