OFT ANNOUNCES SURPRISE INQUIRY INTO DRUG PRICING

THE Office of Fair Trading surprised the pharmaceutical industry yesterday when it announced an investigation into branded drug pricing. The industry had no warning of the inquiry and it was unclear what had motivated it. Drugs are priced during negotiations between the Department of Health and the industry under rules laid down in the Pharmaceutical Price Regulation Scheme (PPRS). The most recent deal, announced this year, led to a 7 per cent price cut as the Government used its muscle to force the industry down.

Times Online (http://www.timesonline.co.uk/article/0,,8122-1779187,00.html)