The Pharmaceutical Journal
Vol 275 No 7356 p3
2 July 2005

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News summary

Generics reimbursement scheme finalised

The Category M scheme for deciding the NHS reimbursement prices of generic medicines in England and Wales has been fixed for five years and will be supplemented by a scheme using wholesaler’s prices (scheme W).

Under the Category M scheme, manufacturers provide information that allows quarterly revisions to prices in the Drug Tariff. Where these data are not received by the Department of Health, information from wholesalers will be used instead.

Under both schemes, manufacturers and wholesalers will be required to provide data on sales volumes, net sales values and net acquisition costs.

The two schemes are described by the DoH as voluntary, but manufacturers and wholesalers that do not agree to take part will be made subject to statutory schemes under the Health Act 1999 instead.

Health minister Jane Kennedy said: “These new arrangements will further promote a transparent and competitive market for NHS generic medicines while generating annual savings of some £300m. These savings will be channelled towards the new pharmacy contract which recognises the vital role that pharmacist will play in providing and supporting a reliable service that meets patients’ clinical needs.”