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Pharmaceuticals. Plunder and pillage.

A Earl-Slater¹

¹Department of Medicines Management, Keele University.

The Health Service Journal

|July 1, 1999

Summary

The UK government

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Area of Science:

Health economics
Pharmaceutical policy
Public health

Background:

The National Health Service (NHS) faces rising drug costs.
Government intervention is proposed to control pharmaceutical pricing and profits.

Purpose of the Study:

To analyze the proposed government statutory scheme for regulating drug prices and profits in the UK.
To assess the potential effectiveness and challenges of the proposed scheme.

Main Methods:

Analysis of the proposed government legislation.
Review of international experiences with similar drug pricing regulations.
Identification of empirical challenges in defining excessive pricing and profits.

Main Results:

The proposed scheme lacks clear definitions for "excessive prices or profits," creating ambiguity.
Penalties for non-cooperation are outlined, but conditions for application are unspecified.
International evidence suggests such schemes may not curb the increasing NHS drug expenditure.

Conclusions:

The proposed statutory scheme for drug price regulation in the UK faces significant challenges in implementation and effectiveness.
The ambiguity in defining excessive pricing and profits, coupled with international precedents, suggests the scheme may not resolve the rising NHS drugs bill.

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