UK govt moves on NHS generic drug supply

24 July 2001

The UK government has published a position paper on the long-termsupply and reimbursement of generic drugs for the National Health Service, with proposals for securing better value for money for the Service and ensuring a reliable supply of drugs for patients.

The main options put forward in the paper are: - reform of the present arrangements so that the price the NHS pays for generics is based on the price at which they are sold by the manufacturer, plus an amount for the wholesale distributor; and - changing the system of purchasing, so that instead of generics being bought by community pharmacists and being reimbursed by the NHS, the Service would buy them centrally through a system of competitive tendering, using its purchasing muscle.

Announcing the initiative, Health Minister Lord Philip Hunt noted that, in 1999, the NHS had been hit by "severe turbulence" in the generics market. To protect the NHS from high prices, a maximum price scheme was put in place last August (Marketletters May 1and July 17, 2000), which he said has saved L240 million ($340.7 million) in 2000-01 compared to price levels before this action was taken.

This article is accessible to registered users, to continue reading please register for free.  A free trial will give you access to exclusive features, interviews, round-ups and commentary from the sharpest minds in the pharmaceutical and biotechnology space for a week. If you are already a registered user please login. If your trial has come to an end, you can subscribe here.

Login to your account

Become a subscriber

 

£820

Or £77 per month

Subscribe Now
  • Unfettered access to industry-leading news, commentary and analysis in pharma and biotech.
  • Updates from clinical trials, conferences, M&A, licensing, financing, regulation, patents & legal, executive appointments, commercial strategy and financial results.
  • Daily roundup of key events in pharma and biotech.
  • Monthly in-depth briefings on Boardroom appointments and M&A news.
  • Choose from a cost-effective annual package or a flexible monthly subscription
The Pharma Letter is an extremely useful and valuable Life Sciences service that brings together a daily update on performance people and products. It’s part of the key information for keeping me informed

Chairman, Sanofi Aventis UK





Today's issue

Company Spotlight