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PJ Online homeThe Pharmaceutical Journal
Vol 276 No 7397 p468
22 April 2006

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PPRS bites into GP drugs bill …

Prescribing costs

GP prescribing costs have fallen for the first time in years

Last year's 7 per cent cut in drug prices imposed on the pharmaceutical industry through the Pharmaceutical Price Regulation Scheme, coupled with some high cost drugs coming out of patent, resulted in a 2.8 per cent fall in the costs of GP prescribing in England.

This was the first time the annual cost of GP prescribing has fallen for at least 15 years.

This reduction was achieved despite a 5 per cent increase in the number of GP prescriptions written. It contrasts sharply with the 7.6 per cent cost increase in 2005 and an 11.4 per cent cost increase in 2003. Prescription numbers in those years also rose by at least 5 per cent.

The impact of the PPRS changes is seen most dramatically in the prescribing of medicines classified in the British National Formulary as medicines for cardiovascular disorders and for musculoskeletal and joint diseases.

The number of cardiovascular prescriptions rose by 8.7 per cent to 218 million in 2005, but their total cost fell by almost 13 per cent to £1.873bn. Despite this, cardiovascular disease remains the most frequent indicator for GP prescribing and the most expensive.

The cost of prescribing for musculoskeletal and joint diseases fell by over 29 per cent with an associated 3.56 per cent reduction in prescribing.

The only other BNF categories in which the cost of GP prescribing fell were drugs to treat infections, malignant disease and immunosuppression, and ear, nose and oropharynx.

… and the pharmaceutical industry

Medicine prices have fallen by 21 per cent in real terms over the past 10 years, according to the Association of the British Pharmaceutical Industry. At the same time the drugs bill has fallen from 11.7 per cent to 11 per cent of the total cost of the NHS, having peaked at 12.1 per cent in 1999.

Last week, the ABPI said that the UK spends less on medicines than most other European countries, with the annual cost of prescriptions written by British doctors averaging £205 per person.

Coupled with an 8 per cent drop in the UK pharmaceuticals trade surplus balance to £3,424m, the figures prompted ABPI director general Richard Barker to say: “There are some worrying signs over the health of the pharmaceutical industry in the UK.”

He added: “The public and politicians need to recognise the NHS is getting excellent value for money invested in UK medicines. However, we have serious concerns over the research and manufacturing base in the country, and our balance of trade — while still the envy of many other industries — is now showing a decrease.”

Warning that the UK pharmaceutical industry faced further potential pressure, Dr Barker added: “The stability afforded by the PPRS has been one of the key elements underpinning the success of pharmaceutical research in the UK and retaining investment. Although a new scheme introduced at the beginning of 2005 delivered substantial reductions in the medicines bill, before the end of the year, the industry was facing an Office of Fair Trading probe into the PPRS, which is ongoing. Although no pricing scheme is perfect, the PPRS provides a more stable environment than any other in the EU.”

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