UK Pharmaceutical Industry: "Ban PPRS And Parallel Imports," Says NERA

A new report issued by the UK's Centre for the Study of RegulatedIndustries (the research arm of the Chartered Institute of Public Finance and Accountancy) on the current status of regulated industries discusses the pharmaceutical sector alongside utilities such as water, gas, electricity, telecommunications, airports and railways, noting particularly developments in the privatized utilities.

In the pharmaceutical section, the report, by the CRI's Peter Boulding, reviews the current regulatory system, notably the Pharmaceutical Price Regulation Scheme (described as "voluntary," though no-one has treid to opt out: Ed), which is due to be renegotiated in 1998. The government is concerned that costs might spiral out of control if it were abolished and nothing was put in its place, and some drugmakers are also reluctant to see it go. The Association of the British Pharmaceutical Industry has set up a task force to explore the options for the 1998 review, as well as industry views on what these should be.

The report notes that under the new Labour government, responsibility for the drug industry (including the PPRS) goes to Baroness Jay in the House of Lords, while junior Health Minister Alan Milburn is responsible for prescribing and the drugs bill. This, it says, might be interpreted as suggesting a change in the approach to the industry from that of the previous government.