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The Pharmaceutical Journal Vol 263 No 7076 p969
December 18/25, 1999 News

"NHS drug spending could increase," says Health Secretary

Spending on pharmaceuticals within the National Health Service could increase as a result of the work of the National Institute for Clinical Excellence, according to the Secretary of State for Health (Mr Alan Milburn).
Speaking at the first NICE conference in Harrogate on December 8, Mr Milburn said that, as well as advising on new treatments, the NICE would also "point out which treatments are less clinically cost effective" and, as a result, "free up financial headroom" for the use of more cost effective treatments.

Alan Milburn
Alan Milburn: NICE creates financial headroom for new drugs

"That is how patients will get the drugs they need, while being protected from those they do not. So, rather than just adding new treatments at the margin, the NICE will actively displace those older treatments which can now be superseded."
Mr Milburn said that the Government was increasing the amount spent on the NHS by an average of 4.5 per cent per year in real terms over the next three years, adding: "And the pharmaceutical growth element of this is even greater."
"I see no reason why in future new drug treatments should not comprise a much higher share of the growing NHS budget - which is precisely why we have taken the arbitrary cap off drug spending by developing unified budgets."
Mr Milburn also announced the timetable for the first programme of appraisal work to be undertaken by the NICE, which was published as part of the institute's business plan for 1999-2000. The first guidance notes for the NHS are expected to be published in March, 2000, and will cover prostheses for hip replacement and the routine extraction of wisdom teeth. The first guidance on pharmaceutical products will be in April, 2000, (assuming that no appeal is made by manufacturers) and will cover taxanes in breast and ovarian cancer.
Appendix A of the business plan outlines 23 areas to be covered by the NICE, with publication dates through to February, 2001 (see Table 1). Full details are available on the NICE website (www.nice.org.uk).
Table 1: First appraisal work programme for the NICE
Treatment area Final appraisal date Guidance published*
Hip prostheses for hip replacement February 22, 2000 March, 2000
Routine extraction of wisdom teeth February 22, 2000 March, 2000
Taxanes for breast and ovarian cancer March 29, 2000 April, 2000
Coronary artery stents March 29, 2000 April, 2000
Liquid based cytology in cervical screening April 27, 2000 May, 2000
Inhaler systems for childhood asthma March 30, 2000 June, 2000
Proton pump inhibitors for dyspepsia May 30, 2000 June, 2000
Hearing aids June 28, 2000 July, 2000
Beta-interferon and glatiramer for multiple sclerosis July 27, 2000 August, 2000
Rosiglitazone for type II diabetes July 27, 2000 August, 2000
Zanamivir and oseltamivir for influenza August 22, 2000 September, 2000
Implantable cardioverter defibrillators August 22, 2000 September, 2000
Glycoprotein IIb/IIIa for unstable angina August 22, 2000 September, 2000
Ribavarin and alpha-interferon for hepatitis C September 27, 2000 October, 2000
Methylphenidate for childhood hyperactivity September 27, 2000 October, 2000
Laparoscopic surgery October 26, 2000 November, 2000
Autologous cartilage transplantation October 26, 2000 November, 2000
Donepezil, rivastigmine and galantamine for Alzheimer's disease November 28, 2000 December, 2000
Riluzole for motor neurone disease November 28, 2000 December, 2000
Cox-2 inhibitors December 13, 2000 January, 2001
Wound care** December 13, 2000 January, 2001
Pioglitazone for type II diabetes January, 2001 February, 2001
Orlistat and sibutramine for obesity January, 2001 February, 2001
Notes: *The exact date of issue for guidance depends on whether or not an appeal is made. **Exact topic to be defined later

It has also been revealed that the NICE has been instructed to take account of the fact that pharmaceutical companies may not have made obtaining cost effectiveness data part of their clinical trials programmes in the past when undertaking the first assessments of products.
Quoted in the Financial Times on December 10, Mr Andrew Dillon (chief executive, NICE) said the NICE would be looking for such data in future and would be issuing further guidance in the new year.