§ Mr. FlynnTo ask the Secretary of State for Health what proposals he has to secure better value in NHS drugs procurement. [106190]
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§ Ms StuartBranded medicines supplied to the National Health Service throughout the United Kingdom are covered by the Pharmaceutical Price Regulation Scheme (PPRS). The PPRS includes a 4.5 per cent. reduction in the price of branded medicines from October 1999. Thereafter, the only changes permitted until 1 January 2001 are cost-neutral modulations, with strict controls on price increases after that date. The Health Act 1999 includes reserve powers to deal with companies which elect not to be scheme members or cease to be scheme members. Regulations have just been laid to ensure that the prices of medicines supplied by companies outside the voluntary scheme may be controlled, and the price reduction implemented where appropriate. At the same time the PPRS contains incentives to companies to develop new medicines, and allowances for the cost of research and development.
Generic medicines are not covered by the PPRS. We have commissioned a fundamental review of arrangements for the supply of generic medicines to the NHS in England to examine whether existing arrangements best serve the health service and to identify possible alternatives. The conclusions of the programme of work are expected in the summer.
The NHS Supplies Authority plays a part in the procurement of medicines for hospitals. The NHS Purchasing and Supply Agency will be set up from 1 April to improve the efficiency and effectiveness of purchasing in the NHS in England.
§ Mr. FlynnTo ask the Secretary of State for Health what plans he has to ensure that the NHS drugs bill will not be increased as a result of the merger of Glaxo Wellcome and SmithKline Beecham. [106188]
§ Ms StuartThe Director General of Fair Trading will consult interested parties about the proposed merger and will advise the Department of Trade in due course. His advice will take account of any comments from this Department on issues such as any effect of the proposed merger on price and availability of medicines and competition among health service suppliers.
§ Mr. FlynnTo ask the Secretary of State for Health what proportion of NHS expenditure in each of the past 10 years was on drugs. [106191]
§ Ms StuartThe information requested is provided in the table.
Total NHS drugs bill as a percentage of total NHS expenditure Year Percentage 1988–89 10.8 1989–90 11.1 1990–91 10.7 1991–92 10.9 1992–93 11.2 1993–94 11.8 1994–95 12.1 1995–96 12.7 1996–97 13.3 1997–98 13.7 1998–99 13.9 Note:
The 1998–99 data are provisional, but unlikely to change to any significant extent.