Select Committee on Health Appendices to the Minutes of Evidence


APPENDIX 2

Supplementary memorandum by the British Generic Manufacturers Association (GD4A)

  There were two or three issues which came up in last Thursday's hearing where we may be able to help the Committee further. My colleague, Joanne Bullen, has alerted you to the fact that we should be submitting this further evidence.

1.  RELATIVE COSTS OF GENERICS

  The Committee made clear that it would welcome information on the cost of the same products in different countries. At Annex A is a list, prepared by one of the Association's member companies, of prices of a range of products in the UK, Germany and The Netherlands.

2.  PHASING OF THE INTRODUCTION OF PATIENT PACKS

  There was considerable debate about whether the current or the previous government had agreed to phasing the introduction of patient packs, by therapeutic category. I enclose at Annex B:

    —  A letter dated 18 March 1997 from the then Minister for Health, Gerry Malone MP, to me confirming "the Government's unequivocal support for an incremental move to supply medicines in patient packs".

    —  A table showing the proposed phased introduction.

    —  A copy of the brochure prepared to explain the moves to patient packs[1].

  Following the change of government, incoming ministers questioned what they characterised as the "cost and complexity" of the proposed move to patient packs. There were protracted discussions between the Department on the one hand, and the industry and the professions on the other, during which we argued that the proposed change was the most cost-effective way of meeting the requirements of the EC labels and leaflets directive.

  This debate continued until the publication by the Medicines Control Agency of its formal consultation letter of 11 September 1998. MLX 247, on the implementation of the Directive. We responded on 23 October 1998. To date, we have had no response from the MCA or the Department of Health. Manufacturers have, therefore, reached their own conclusions on how best to comply with the provisions of the Directive, and have chosen to do so by introducing patient packs.

  Because there is no agreed timetable or mechanism for this, a shift to patient packs by one manufacturer without provision for the reimbursement price to be included within the Drug Tariff, means that bulk supplies may be in short supply and move to Category D, with the implications that were discussed at the hearing, even though there are ample aggregate supplies of the medicine itself.

3.  ADDITIONAL BACKGROUND INFORMATION

  I am enclosing at Annex C a copy of the Association's Chairman's speech at our annual dinner in the Spring, from which he read during his evidence to the Committee on Thursday. [2]

  I also take this opportunity to repeat the invitation which my Chairman extended to the Committee in oral evidence to visit one of our members' manufacturing facilities. We should be very happy to arrange this, either as part of this Inquiry, or distinct from it to help further the Committee's understanding of the generic industry.

9 November 1999

Annex A

PRICE COMPARISON OF GENERIC MEDICINES IN THE NETHERLANDS, GERMANY AND THE UK 1998

US$
US$
US$
Netherlands
Germany
UK
Pack Size
Atenolol Tabs 25mg
2.67
4.25
0.43
ATEBETA
30
Atenolol Tabs 50mg
3.19
7.51
0.42
ATEBETA
30
Atenolol Tabs 100mg
5.08
12.13
0.53
ATEBETA
30
Amoxycillin Caps 500mg
5.95
10.87
0.96
AMOXYCILL
20
Captopril Tabs 12.5mg
3.20
5.49
0.98
ACE HEMMER
30
Captopril Tabs 25mg
4.51
7.04
1.06
ACE HEMMER
30
Captopril Tabs 50mg
7.38
9.91
1.75
ACE HEMMER
30
Cimetidine Tabs 400mg
7.87
15.95
1.21
ALTRAMET
30
Frusemide Tabs 40mg
1.33
3.33
0.25
FURO
30
Ranitidine Tabs 150mg
19.62
21.25
13.82
AZURANIT
60
Ranitidine Tabs 300mg
19.18
19.01
13.82
AZURANIT
30


Annex B

PATIENT PACKS IMPLEMENTATION

  Thank you and the other signatories for your 7 March letter with its commitment to the principle that information to patients on their medicines should be made available in manufacturers' (patient) packs wherever possible. I share this commitment and welcome your offer to work together to achieve this change.

  I endorse the broad timescale for the full implementation of the move to patient packs and agree with the general wish that a formal start should be made this Spring. I have therefore asked officials to begin consultation immediately to pave the way for change to the Prescription Only Medicine Order.

  As your letter points out there are still important practical issues to be finally resolved—the degree and timing of translation required to ensure that patient information is ultimately available at the point of dispensing for all prescribed medicines; stock management issues in the community pharmacy; details about the supply of leaflets and the monitoring and progressive adjustment of the implementation programme through to its completion. Over the next few days officials will be writing to the appropriate organisations about these issues.

  My purpose in writing now is to confirm the Government's [unequivocal] support for an incremental move to supply medicines in patient packs and to let you know that further discussion of detail will take place against that background.

Gerald Malone

MEETING OF THE PATIENT PACKS JOINT WORKING GROUP ON 17 JUNE 1997
Present:
Department of Health

Mr J Barnes

Dr P Clappison

Mr J Thompson

Mr K Childs

Mr B Dyson

Mr C Andrews

Miss H Robinson

Ms J MacDonald

Ms A Armstrong
ABPI

Mrs F Charlesworth

Mr J Bowler

BGMA

Mr W Smith

SPGC

Dr C Virden
PSNC

Mr W Dove

Mr S Axon

RPS

Mr R Odd

GMSC

Dr P Fellows

Dr J Chisholm

PURPOSE OF MEETING

  1.  The purpose of the meeting was to take stock of developments since the last meeting of the Group on 30 May.

PSNC PROGRESS REPORT

  2.  Mr Dove reported that:

    —  PSNC and the Department had reached agreement on the Container Allowance arrangements which would be introduced with patient packs. This was confirmed in his letter to the Department of 17 June;

    —  at a meeting with the Department on 12 June, much progress has been made towards resolving the outstanding residual stock issue. PSNC would write shortly to the Department outlining how they had arrived at their estimates of residual stock costs. The Department had agreed to give some thought to how extra storage space needs of pharmacists might be reflected in the final package;

    —  PSNC had considered the 6 June draft of the new dispensing and reimbursement rules. There were some points of detail that required further discussion with the Department such as definition of the "standard pack". To ensure that patient pack implementation remained on course for September 1997, the final wording of the rules (and how they would be reflected in Regulations and the Drug Tariff) would need to be put to the 9 July meeting of the PSNC.

    Action: Department would take stock of position on dispensing and reimbursement rules by 3 July. Papers sent to PSNC would also be copied to JWG members.

MATCHING PRESCRIBING AND PACK SIZES

  3.  The current pack size exercise (paragraph 8 of the note of 30 May meeting) had now been completed. A proportion of products were to be referred to Dr Clappison's group for a further professional view. Copies of products, with pack size guidelines (including those referred for a second opinion) would be sent to GMSC, PSNC and copied to industry at the same time.

 INFORMATION AND EDUCATION PROGRAMME

  4.  Mrs Charlesworth had received comments on the revised draft of the CASE document from some but not all members of the Patient Packs Education Campaign Sub-group (of the JWG). The Department's publicity unit had advised that DH would be able to handle a distribution of information to NHS professionals. A representative from the unit would be at the next meeting of the Education Sub-group on4 July (2.30 at the ABPI).

  5.  ABPI had kept GP and pharmacy computer software organisations and wholesalers informed about developments on patient packs. It would be important to ensure that these received information on the phasing timetable as soon as this was finalised.

PPA

  6.  The Department's dialogue with PPA was continuing a very detailed level in order effectively to translate the reimbursement rules into a workable system for the PPA to operate. Members would be kept informed of progress.

PHASED PROGRAMME

  7.  MCA had still to resolve some outstanding issues on the revised programme. In the meantime copies of the current proposals (not the final version) would be sent to JWG members (attached).

SPARE LABELS AND LEAFLETS

  8.  On 21 May Mr Barnes had written to Dr Read, of the ABPI, explaining that although no immediate legal requirement would be placed on companies to supply spare leaflets and labels, it was essential that pharmacists, required to break packs, had access to labels and leaflets for patients. Copies of Mr Barnes' letter and Dr Read's response of 9 June had been circulated to JWG members. GMSC thought that pack breaking was more likely with particular products, such as Antibiotics. Mr Bowler said that the ABPI fully recognised the potential problem for pharmacists. He would take the matter away in order to develop a recommendation to be put to a future meeting of the Working Group.

UK COUNTRIES

  9.  All agreed it was most important for all UK countries to synchronise implementation of patient packs. The Department would check with Scottish and Welsh Offices for a progress report on this.

MONITORED DOSAGE SYSTEMS

  10.  It was still unclear how patient packs would impact on MDS. The Department would take the matter away and report back at a future meeting of the JWG.

NEXT MEETING

  11.  The next meeting of the Group would be on Thursday 10 July at 2.00 pm in room 149 Richmond House.

DH International and Industry Division

June 1997

 
Date of introduction of packs MARCH JUNE SEPTEMBER DECEMBER
1997 Phase A
Antivirals
Cholesterol reducers
Systemic corticosteroids
Sex hormones and other gynaecologicals
Vaccines
Dermatologicals
Phase B

Peptic ulcer
Cardiac therapy (some)
Antihaemorrhoidals
Antieoplastic and immunosupressant, excluding endocrine therapy
1998 Phase C Phase DPhase E Phase F-F1
Antimigraine
Antispasmodics
Antidepressants
Antiasthma
Antidiarrhoeals and intestinal anti-infective
Antihistamines
Anxiolytics
Hypnotics
Paracetamol-containing products
Aspirin-containing products
Antacids and anti-flatulent
Musculoskeletal system
Gynaecological and anti-infectives and other urologicals
Anti-diabetic therapy
Antihypertensives
Beta-blockers
Diuretics
Peripheral vasodilators
1999 Phase F-F2 Phase F-F3
Psycholeptics and psychostimulants
Systemic hormones
All other CNS
Endocrine therapy
Cough and colds
Nasal preparations and nasal decongestants

General systemic anti-infectives
All other gastrointestinal tract

Mouth preparations
Sensory organs
Laxatives
throat preparations
Blood and blood-forming organs
Various (not falling into other categories)




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