§ Mr. HammondTo ask the Secretary of State for Health what powers he has to control the prices of(a) parallel-traded branded medicines, (b) branded medicines dispensed against generic prescriptions and (c) branded generic medicines. [126666]
§ Ms StuartThe prices of branded medicines derived from parallel trade follow those not so derived. The price of a branded medicine is unaffected if it dispensed against a generic prescription.
The prices of branded medicines, whether generic or not, are controlled indirectly though the operation of the 1999 Pharmaceutical Price Regulation Scheme (PPRS), a 187W voluntary arrangement which aims to secure the provision of safe and effective medicines for the National Health Service at reasonable prices. Whether the prices are reasonable is determined by the level of profits which manufacturers make from sales to the NHS. The operation of the PPRS is described in detail in the "Pharmaceutical Price Regulation Scheme: Third Report to Parliament December 1999", copies of which are available in Library.
Section 34 of the Health Act 1999 allows my right hon. Friend the Secretary of State to limit the prices of branded medicines supplied to the NHS by companies which are not members of the 1999 PPRS. This power has not been exercised because all major manufacturers of branded medicines are members of the 1999 PPRS.