The House of Commons Health Select Committee has launched a one-off inquiry into the availability of generic medicines to the National Health Service (our Lobby correspondent writes).
The committee chairman, Mr David Hinchliffe (Lab, Wakefield) said on October 26 that it had been sparked by concerns about the impact on primary care groups of price rises introduced by big pharmaceutical companies. He said: "I was shocked when I saw the effect of increases on the budget of a PCG in my own constituency."
The inquiry's terms of reference are "to raise awareness of the current shortage of generic drugs available to the NHS."
An oral evidence session is to be held in committee room 6 of the House of Commons on November 4. Written submissions must be made by 11am on November 1
Speaking on BBC Radio 4's Today programme on October 21, Lord Philip Hunt (Parliamentary Under-Secretary of State for Health) said that there was evidence that manufacturers, wholesalers or pharmacists were hoarding generics in order to take advantage of price rises caused by supply shortages. He said that Department officials were to investigate the matter.
However, the Minister admitted that the supply problem had its roots in the effective closure of Regent Laboratories at the end of last year by the Medicines Control Agency (PJ, January 2, 1999, p7).
The MCA suspended Regent's manufacturing licence because of "serious manufacturing malpractices". Regent accounted for some 15 per cent of the supply of generic medicines.
On the same programme, Mr John Close (chairman, British Generic Manufacturers Association) denied that there was any artificial constriction in supplies.
Two days earlier, BBC1's Newsnight reported that the increase in generic prices would lead to increased drug costs of about £250,000 for each primary care group this year.
Speaking on the programme, the BGMA's director (Mr Warwick Smith) described the price/supply issue as "a bit of a conundrum". Generics manufacturers had made up the shortfall caused by Regent's closure, he suggested.
"We are putting in the same quantity of product now as last year. The Department of Health tells us that people are not buying more drugs, but still there do seem to be problems with supply. Part of that may be due to the move to patient packs, otherwise we do not know what is happening."