PharmacoEconomics & Outcomes News 777, p38 - 6 May 2017 New law in UK to control prices of generic drugs The Health Services Medicinal Supplies (Costs) Act has been passed in the UK and will enable the government to control prices of generic drugs, reported Deborah Cohen in the BMJ. The government will be able to work with pharmaceutical companies and the Competition and Markets Authority (CMA) if the price of a generic drug is believed to be excessive, and will also have more powers to collect drug sales data. Previously the British Generic Manufacturers Association (BGMA) agreed to provide quarterly data on volumes of generic drugs sold in primary care and the net revenue gained for some generic drugs. "This enabled the government to see the actual prices that were being paid to manufacturers by the supply chain and set reimbursement prices accordingly . . . The act’s powers duplicate and extend this agreement. It will also enable the department to collect data from all manufacturers, not just those who agree to provide it voluntarily. This will enhance transparency, improve the accurate setting of reimbursement prices, and ensure a level, competitive playing field in the supply of generic drugs," said Warwick Smith, director general of the BGMA. Prices of branded drugs manufactured by companies that have opted out of the Pharmaceutical Price Regulation Scheme will also be able to be controlled under the new law. The Association of British Pharmaceutical Industries "supports the government in tackling excessive profiteering and of the closure of a loophole which has allowed large price hikes to a small number of NHS* medicines," commented a representative. * National Health Service Cohen D. New law to control prices of generic drugs. BMJ 2017: j2139, No. 357, 803240962 2 May 2017. Available from: URL: https://doi.org/10.1136/bmj.j2139

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PharmacoEconomics & Outcomes News 6 May 2017 No. 777

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