Proposals announced for pricing of generic medicines for NHS in England
Generic medicines: long-awaited proposals published |
Final proposals for supply, pricing and reimbursement arrangements for generic medicines under the National Health Service in England have been published by the Department of Health.
After first proposing either fixed reference pricing or competitive tendering
(PJ, 28 July 2001, p109), the Department has settled for a scheme that
will allow manufacturers to set their own prices in a competitive market
with constraints over price increases in monopoly or near monopoly situations.
Detailed statistical returns will be required from manufacturers and
wholesalers, with returns also being required from a representative sample
of pharmacy contractors so that the Department can monitor the situation.
The proposals have their roots in supply and pricing problems in the
generic market in 1999. At the end of 1998, the then Medicines Control
Agency revoked Regent-GM Ltd’s manufacturing licence because of
good manufacturing practice failures by the company. At the time, Regent
held a 10 per cent share of the generics market and was a major contract
manufacturer for other generic labels. Knock-on shortages of many generics
led to sharply rising prices — in some cases up to 600 per cent — and
accusations of profiteering.
Leading article, p284,
News feature, p295 |
