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BY OUR PHARMA CORRESPONDENT
15 July, 2005: The United Kingdom's Department of Health announced details of the long-term arrangements for reimbursement of NHS generic medicines. The scheme, unveiled at the end of June 2005 will replace the Maximum Price Scheme introduced in August 2000, and will generate annual savings of £300 million (US$520.1million).
There will be two voluntary schemes, Schemes M for manufacturers and Scheme W will apply to wholesalers. Under the schemes, manufacturers will supply information to allow quarterly revisions to the new Category M in part VIII of the Drug Tariff. In cases were such information is not received, prices can be determined from information provided by wholesalers through Scheme W, according to the Health Department sources.
The arrangement is expected to promote a transparent and competitive market for the NHS, whilst generating savings of £300 million. The savings would be channelled towards the new pharmacy contract, which recognises the role pharmacists play in providing and supporting a reliable service that meets patients needs, they said.
Category M applies to some medicines that had previously been in Category A of the Drug Tariff, and was introduced in April 2005. The basic prices of drugs in Category M reflect the average manufacturers' market prices after discount, rather than being based on the Category A system of basket prices before discount. The new arrangements are expected to operate for not less than five years from 1st April 2005, the Department of Health sources added.
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