Drugs companies fear OFT pricing investigation results - report |
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Sun, 18 Feb 2007 15:00
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LONDON (AFX) - The pharmaceutical industry is bracing itself for a proposed overhaul of the drug-pricing regime in the UK, according to a report in The Independent newspaper.The paper said John Fingleton, the head of the Office of Fair Trading, is expected this week to unveil the findings of an inquiry that could lead to a reduction in the profits that companies are allowed to make on medicines.Under the Pharmaceutical Price Regulation Scheme (PPRS), branded-drug companies are allowed to make a profit of up to 21 pct on any medicines they sell to the NHS, the report said.However, when this five-year deal was struck in 2005, companies agreed to 7 pct across-the-board price reductions.The OFT, which has sought evidence from both generic and branded makers, could recommend a system that is based on the value they provide rather than a blanket profitability formula, according to the report.rhys.jones@afxnews.comrj/wjCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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Pharma sector under OFT scrutiny 