The Nation Health Care System of Britain, the NHS, has been in constant light over the past few years. This focus has become even more acute |as it tries desperately to repair itself from collapsing.
A recent report by the Office of Fair Trading, has expressed that the NHS may actually be paying Drug companies millions of pounds more then they should, for branded drugs.
A conclusive study carried out by the watchdog from 1995 on the purchasing of drugs by the NHS from Pharma companies, has brought to light some interesting facts. The officially published of this study, may perhaps highly fluctuate the stocks of some of the top Pharma companies.
It is anticipated that the Head of The Office of Fair Trading, John Fingleton will be reveling the findings of this inquiry to 10 downing street within this week. Consequence of which could well mean a reduction in the profit margins of all Pharma companies supply drugs to the NHS.
Currently, branded Pharma companies under the Pharmaceutical Price Regulation Scheme can legally charge up to 21% profit on any medicine they sell to the NHS. However, generic drug companies are able to produce and sell copycat drugs much cheaper to the branded treatments.
Branded companies argue that they need to make back returns on the hours and millions spent on research then trials before a drug can be successfully launched into the market. A reduction on profit margins could well have harsh consequence on research and development of newer drugs for the British Pharmaceuticals companies.
The government has an extremely tough road ahead of them. With branded drug companies not going to yield without a good fight, generic drug companies waiting in the wing and millions of pounds of tax payer's money at stake.