Menu
03/11/2004
Billion-pound price cut won for NHS medicine bill
The government has won a billion-pound price cut in key medicines for the NHS, it has emerged today.
The health department negotiated the 7% price reduction – totalling £1.8 billion over five years – for branded prescription medicines following nine months of discussions with the Association of the British Pharmaceutical Industry.
The deal will enable the NHS to save £370 million a year and put it back into frontline NHS services by local Primary Care Trusts. The pay-off for the pharmaceutical industry is the government will now offer greater incentives for companies to research and develop new medicines.
The agreement provides for an increased allowance for research and development (up to 28% of NHS sales) with financial incentives for the introduction on innovative medicines including those for children.
Health secretary John Reid said: "The NHS in England spends around £11 billion on medicines each year. It is vital that this money is spent wisely and that we get good value for money.
"This new deal is a win-win. It is good value for money for the NHS and the taxpayer and it is good for the industry because it provides an incentive for research and innovation."
The deal has been agreed as part of a new Pharmaceutical Price Regulation Scheme (PPRS) agreement with the pharmaceutical industry which is negotiated every five years.
The PPRS agreement covers the price of 'branded' prescription medicines. This means medicines that have been licensed for prescribing on the NHS to which the manufacturer has applied a brand name so that it can be identified without reference to its generic name.
Total NHS drugs bill spend in England is expected to be in the region of £11 billion in 2005-06. This covers medicines prescribed in the community (mainly by GPs), includes generic as well as branded medicines and sales on non-medicines such as appliances.
(gmcg/sp)
The health department negotiated the 7% price reduction – totalling £1.8 billion over five years – for branded prescription medicines following nine months of discussions with the Association of the British Pharmaceutical Industry.
The deal will enable the NHS to save £370 million a year and put it back into frontline NHS services by local Primary Care Trusts. The pay-off for the pharmaceutical industry is the government will now offer greater incentives for companies to research and develop new medicines.
The agreement provides for an increased allowance for research and development (up to 28% of NHS sales) with financial incentives for the introduction on innovative medicines including those for children.
Health secretary John Reid said: "The NHS in England spends around £11 billion on medicines each year. It is vital that this money is spent wisely and that we get good value for money.
"This new deal is a win-win. It is good value for money for the NHS and the taxpayer and it is good for the industry because it provides an incentive for research and innovation."
The deal has been agreed as part of a new Pharmaceutical Price Regulation Scheme (PPRS) agreement with the pharmaceutical industry which is negotiated every five years.
The PPRS agreement covers the price of 'branded' prescription medicines. This means medicines that have been licensed for prescribing on the NHS to which the manufacturer has applied a brand name so that it can be identified without reference to its generic name.
Total NHS drugs bill spend in England is expected to be in the region of £11 billion in 2005-06. This covers medicines prescribed in the community (mainly by GPs), includes generic as well as branded medicines and sales on non-medicines such as appliances.
(gmcg/sp)
Related Northern Ireland Business News Stories
Click here for the latest headlines.
15 September 2017
Funding Available For Precision Medicine Technologies
Up to £6 million has been made available for innovative projects to support the development of precision medicine technologies.
Funding Available For Precision Medicine Technologies
Up to £6 million has been made available for innovative projects to support the development of precision medicine technologies.
15 November 2024
Electric Shock Report To Launch At NI's Premier Electrical Industry Event
A new report aimed at tackling the widespread underreporting of electric shocks within the electrical industry in Northern Ireland will be launched later this month, as part of the Electrical Training Trust's (ETT) 'Save Our Sparks' campaign.
Electric Shock Report To Launch At NI's Premier Electrical Industry Event
A new report aimed at tackling the widespread underreporting of electric shocks within the electrical industry in Northern Ireland will be launched later this month, as part of the Electrical Training Trust's (ETT) 'Save Our Sparks' campaign.
03 August 2001
Halifax report house price rises dip in July
Rampant house price rises at the start of the year have shown their first dip according to a new survey released by the Halifax. In July the average house price rise dropped off to 0.7 percent, which has been interpreted as the first sign that the early year rises of almost 11 per cent may be tailing off.
Halifax report house price rises dip in July
Rampant house price rises at the start of the year have shown their first dip according to a new survey released by the Halifax. In July the average house price rise dropped off to 0.7 percent, which has been interpreted as the first sign that the early year rises of almost 11 per cent may be tailing off.
18 February 2004
Cut in prescription fraud saves taxpayer £70m
Prescription fraud has been slashed by 60% over the past six years - saving the taxpayer around £70 million – the government has said today. Figures collected by the NHS Counter Fraud and Security Management Service (CFSMS) have revealed that losses have fallen from £117 million a year in 1998/99 to just £47 million a year in 2002/03.
Cut in prescription fraud saves taxpayer £70m
Prescription fraud has been slashed by 60% over the past six years - saving the taxpayer around £70 million – the government has said today. Figures collected by the NHS Counter Fraud and Security Management Service (CFSMS) have revealed that losses have fallen from £117 million a year in 1998/99 to just £47 million a year in 2002/03.
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
