In response to the Health Select Committee's report (see above), the Parliamentary Under-Secretary of State for Health (Lord Hunt) announced the terms of reference for the Government's fundemental review of the generics drug market.
The review is being carried out by Oxford Economic Research Associates Ltd (OXERA) and is to be "a fundamental review . . . taking into account the totality of medicines supply and distribution arrangements. If necessary these will also be reviewed".
The review will cover ownership links within the market, operational characteristics of distribution and supply, an analysis of how the NHS reimbursement arrangements and distribution margins affect participants' behaviour, and incentives that exist at each stage of the chain and how these incentives are changing.
OXERA has been asked to take two perspectives in its review: a "remedial" approach to the existing arrangements, and a "radical" approach asking how things might be done differently.
A report is expected in the summer.