Parliamentary Search

Written question asked by Earl Howe (Conservative), in the House of Lords. It was answered by Lord Darzi of Denham (Labour) on Wednesday, 5 November 2008.

Health: Pharmaceutical Prices

Question
asked Her Majesty's Government:Further to the remarks by Baroness Thornton on 21 October (Official Report, col. 1113), when they expect the further regulations on a statutory pharmaceutical pricing scheme to be laid; and whether, in deciding the timetable for those regulations, they will allow the pharmaceutical industry sufficient time to choose between the new voluntary Pharmaceutical Price Regulation Scheme and the statutory scheme; and
Answer

The department's consultation on a statutory scheme to control the prices of branded National Health Service medicines ended on 25 September 2008. The Government are currently considering the responses to that consultation and reflecting on further discussions it has held with the industry. Further announcements will be made once that process is complete. There are no plans to increase pharmaceutical prices in response to the recent change in macroeconomic conditions. The pharmaceutical industry generates significant cash flows, and does not generally rely on debt to finance operations¹. The pharmaceutical industry is not expected to face increased difficulty in financing operations as a result of restrictions in credit markets. "References""¹ Myers SC, Shyum-Sunder L. ““Measuring pharmaceutical industry risk and the cost-of-capital”” in Helms RB (Ed) Competitive Strategies in the Pharmaceutical Industry. Washington, D.C.: AEI Press, 1996: 208-37."

Secondary information

Type
Written question
Reference
705 c64WA; 6002
Session
2007-08
Related items
Subjects
Drugs NHS Prices Price caps Regulation Pharmaceutical price regulation scheme
Legislation
Health Service Branded Medicines (Control of Prices and Supply of Information) Regulations 2008
Link
View this Written question on www.publications.parliament.uk