Maximum prices for generics to remain
Discussions about what mechanism should replace the maximum prices scheme
for generic medicines are set to continue and, for the time being, the
existing arrangements will remain in place.
The Department of Health announced last week that good progress is being
made with developing long-term arrangements to replace the existing scheme.
However, it was not able to put these in place before an annual review
of the maximum prices scheme, required under European law, had to be carried
out. It therefore proposes to extend the current scheme unchanged. “Economic
factors do not, in our view, support the case for an adjustment in the
level of maximum prices in either direction,” the Department says
in a consultation letter sent to interested parties. Comments on the proposals
are invited by 29 November with the scheme being officially extended from
16 December.
According to the Department, since the maximum prices scheme was introduced
in August 2000 the supply of generics to community pharmacies has remained
stable and the National Health Service has been protected from the price
rises seen in 1999.
The two long-term options which the Department is studying are for a
system of reference, or fixed, prices (based on data supplied by manufacturers
and wholesalers) or for central competitive tendering (PJ, 28 July 2001,
p109). Bodies representing pharmacy contractors have proposed a benefit-sharing
model for generics under which pharmacists would be able to retain some
of the savings achieved through competitive purchasing arrangements (PJ,
27 October 2001, p585).
The British Generic Manufacturers Association said that it was disappointed
that it had been necessary, yet again, to roll over the maximum prices
scheme, which many companies were reporting problems with. The BGMA under
stands that the Government is continuing to have separate meetings with
manufacturers and wholesalers about its proposals for long-term arrangements
for generics.
A link to the Department’s consultation letter can be found on the
PJOnline links page (www.pjonline.com/links).
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