PharmacoEconomics & Outcomes News 61 - 11 May 1996

UK industry's view on drug expenditure trends

Although the number of medicines prescribed has increased by around 6% over the last 3 years in the UK, drug expenditure has changed little during this time, the Association of the Bri tish Pharmaceutical Industry (ABPI) points out.

Drugs 1 0% of total expenditure In 1995, drugs prescribed under the UK National

Health Service (NHS) cost an estimated £4 billion ($US6.1 billion); th is represents £0.20/patient/day, or 10% of total NHS spending. The percentage of total NHS spending attributable to prescription drugs has remained reasonably steady over the past few years, notes the ABPI. The industry association also emphasises that per capita drug sales in the UK are among the lowest in the developed world, at < £100 in 1995, compared with the equivalent of nearly £300 in Japan and £200 ($US306) in the US.

Drugs 17% cheaper in real terms In real terms, prescription drug prices are 1 7%

cheaper today than they were 10 years ago, claims the ABPI. The UK Pharmaceutical Pricing Regulation Scheme - which controls the profits that drug companies make on sales to the NHS - has made a substantial contribution to this fact, notes the industry association. Today, the average cost set by a manufacturer for their prescription drug is £8 ($US12.24), while 1 week's stay in a NHS hospital costs the taxpayer > £1000 ($US1530) . Cost effectiveness of dmgs: ABPI view. MarketleHer 23: II . 22 Apr 1996 80043% t3