§ Dr. IddonTo ask the Secretary of State for Health what plans he has to discuss the costs of drugs used in the treatment of HIV and hepatitis C infections with representatives of the Pharmaceutical Industry. [136161]
§ Ms StuartI have no such plans. The prices of branded medicines are controlled indirectly by the Pharmaceutical Price Regulation Scheme (PPRS) which limits the profits which companies can make from the sale of these products to the National Health Service. Companies have freedom of pricing within this ceiling on overall profits. A new scheme was introduced in October 1999 under which the prices of medicines covered by the PPRS were reduced by 4.5 per cent. overall giving savings to the NHS of around £200 million per year. Copies of the agreement, containing full details, are in the Library.
At the same time, hospitals can aggregate their purchasing power for these products and the NHS Purchasing and Supplies Authority then competitively tenders this business on their behalf. In some cases hospitals themselves negotiate direct with the pharmaceutical industry.