§ Mr. Peter BradleyTo ask the Secretary of State for Health (1) what assessment he has made of the prevalence in the pharmaceutical sector and the cost to the NHS of the practices criticised by the OFT following its investigation of Napp Pharmaceutical's pricing policies; and if he will make a statement; [157089]
(2) what steps he proposes to take to reduce the costs to the NHS which arise from pricing practices of drug companies which have been condemned by the Office of Fair Trading following its investigation of the conduct of Napp Pharmaceuticals Ltd. [157400]
§ Ms StuartThe investigation carried out by the Office of Fair Trading relates to one product from one company, which was the subject of a specific complaint. Ministers are examining closely the implications of the decision of the Director-General of Fair Trading and of the direction which he may give to correct the practices which he has criticised, taking into account any appeal which the company may make.
The Department keeps the level of competition in the pharmaceutical sector under review, and has mechanisms in place to prevent profiteering. It secures value for money through the Pharmaceutical Price Regulation Scheme (PPRS) which controls the profits which companies make from the supply of branded medicines to the National Health Service. Under this scheme a high price for one product may be balanced against a low one for another, provided that the company's overall profits remain within the limits permitted by the scheme.