HEALTH MINISTER LORD HUNT ANNOUNCES ROLL FORWARD OF THE UK WIDE MAXIMUM PRICE SCHEME FOR GENERIC MEDICINES IN NHS PRIMARY CARE

Health Minister, Lord Philip Hunt today announced the roll forward of the UK wide maximum price scheme for generic medicines - those without a brand name - used in NHS Primary Care.

Lord Hunt said:

" The Government has decided to roll forward unchanged the maximum price scheme for generic medicines used in NHS Primary Care. This follows a wide consultation with manufacturers, wholesalers and retailers and their representative bodies that concluded on 14 September.

" The maximum price scheme was introduced in August 2000 as a result of price increases and the turbulence in the generic market that started in 1999. The scheme has restored stability to the generics market and the NHS has made expenditure savings of some £240 million in 2000-01. The continuation of the maximum price scheme will ensure that this stability continues and that the expenditure savings are maintained.

" At the same time we are also discussing options for longer-term arrangements for the supply and reimbursement of generic medicines to the NHS with interested parties. The discussion period will end on 22 October.

" The maximum price scheme will remain in place pending decisions on longer-term arrangements for the supply and reimbursement of generic medicines."

Note for editors

1. The Government introduced the maximum price scheme in August 2000 as a result of turbulence in the UK generics market that started in 1999. In accordance with European Directive the scheme must be reviewed within 12 months of its implementation and a decision announced within 90 days.

2. Generic medicines play an increasingly important part in NHS treatment. In 2000, 71% of all prescriptions were written generically and 52% were dispensed generically. Savings from generic prescribing have allowed the NHS to invest in other areas of patient care.

[ENDS]