OFT defers PPRS competition complaint
Government controls over drug prices in the UK are not to be referred to the Competition Commission by the Office
of Fair Trading for the time being.
After gathering data about the markets
affected by the Pharmaceutical Price Regulation Scheme for the past six months (PJ, 17 September 2005,
p331), the OFT has said that it will now assess the scheme’s effects
and compare it with potential alternatives. The OFT said that its decision
not to refer the scheme reflected positive co-operation from the Government
and the pharmaceutical industry, but warned that it could still ask the
commission to intervene if co-operation did not continue at the same
level. OFT chief executive John Fingleton said: “Our objective
is to ensure that the PPRS supports vibrant competition that delivers
both value for money and medical benefits to patients both now and in
the future through stimulating
innovation.”
The director general of the Association of the British Pharmaceutical
Industry, Richard Barker, responded: “Although we continue to question
the rationale and timing of the study, we do not find it particularly
surprising that the OFT should want to examine aspects of the PPRS in
greater detail, given its complexity.” |
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