The Association of the British Pharmaceutical Industry (ABPI) has said that it will fully co-operate with the study announced by the Office of Fair Trading into the Pharmaceutical Price Regulation Scheme (PPRS).


​The PPRS, which has been in existence in one form or another for nearly 50 years, has three main aims. They are to:

  • Secure the provision of safe and effective medicines for the NHS at reasonable price.
  • Promote a strong and profitable pharmaceutical industry capable of such sustained research and development expenditure as should lead to the future availability of new and improved medicines.
  • Encourage the efficient and competitive development and supply of medicines to pharmaceutical markets in this and other countries.

It achieves this by capping the profits that pharmaceutical companies can make on their sales of branded, prescription medicines to the NHS. It does not cover generic medicines.

“The PPRS is conducted in a very open and transparent way, with annual reports to Parliament about its progress and full details of how it operates made public,” said Dr Richard Barker, Director General of the ABPI.

“We shall of course co-operate fully with the OFT as requested by them during the course of their study.”

There is an ABPI publication, Understanding the PPRS, which explains how the scheme works. It is available through the ABPI website.

For further information, please contact: ABPI Press Office 020 7747 1410

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