Drugmakers lose fight over cheap UK medicines

[Guest guest]

Drugmakers lose fight over cheap UK medicines

Thu Apr 22, 2010 11:22am EDT

Related News

rules against drug industry

Healthcare

* UK schemes promoting use of cheaper drugs not illegal

(Adds reaction from generic drug manufacturers)

By Ben Hirschler

LONDON, April 22 (Reuters) - Drug companies have lost a legal battle against schemes promoted by Britain's state health service that encourage doctors to prescribe cheaper medicines.

The Association of the British Pharmaceutical Industry (ABPI), representing dozens of pharmaceutical firms, had argued that National Health Service prescribing incentive schemes were an illegal inducement under strict European rules on drug promotion.

But the European Court of Justice ruled on Friday they were in compliance with European Union advertising legislation, cheering producers of generic medicines who said such schemes helped ensure value for money.

Under the incentive schemes, British medical practices are rewarded for switching patients to cheap unpatented drugs or prescribing them to new patients who would otherwise have got a more expensive patented medicine.

Individual doctors who share in the profits of medical practices could ultimately benefit from such financial incentives, prompting drugmakers to argue that they breached an EU ban on financial incentives for drug prescribing.

The court, however, decided the prohibition could not apply to national public health authorities who have the responsibility of controlling public expenditure.

The ABPI said it was disappointed by the ruling, which did not follow an earlier opinion of the European Advocate-General.

Isabel Manley, head of the regulatory practice at law firm Bristows, said the ruling would come as a shock to drugmakers.

"Whilst prescribing incentive schemes may have the ultimate objective of reducing national expenditure on medicines, to tolerate them is to pull the teeth out of the European advertising legislation," she said.

But the European Generic Medicines Association said it was in the interests of both patients and healthcare systems that prescribing should take account of the affordability of different drugs. (Editing by Cowell and Jon Loades-)

[Guest guest]

Drugmakers lose fight over cheap UK medicines

Thu Apr 22, 2010 11:22am EDT

Related News

rules against drug industry

Healthcare

* UK schemes promoting use of cheaper drugs not illegal

(Adds reaction from generic drug manufacturers)

By Ben Hirschler

LONDON, April 22 (Reuters) - Drug companies have lost a legal battle against schemes promoted by Britain's state health service that encourage doctors to prescribe cheaper medicines.

The Association of the British Pharmaceutical Industry (ABPI), representing dozens of pharmaceutical firms, had argued that National Health Service prescribing incentive schemes were an illegal inducement under strict European rules on drug promotion.

But the European Court of Justice ruled on Friday they were in compliance with European Union advertising legislation, cheering producers of generic medicines who said such schemes helped ensure value for money.

Under the incentive schemes, British medical practices are rewarded for switching patients to cheap unpatented drugs or prescribing them to new patients who would otherwise have got a more expensive patented medicine.

Individual doctors who share in the profits of medical practices could ultimately benefit from such financial incentives, prompting drugmakers to argue that they breached an EU ban on financial incentives for drug prescribing.

The court, however, decided the prohibition could not apply to national public health authorities who have the responsibility of controlling public expenditure.

The ABPI said it was disappointed by the ruling, which did not follow an earlier opinion of the European Advocate-General.

Isabel Manley, head of the regulatory practice at law firm Bristows, said the ruling would come as a shock to drugmakers.

"Whilst prescribing incentive schemes may have the ultimate objective of reducing national expenditure on medicines, to tolerate them is to pull the teeth out of the European advertising legislation," she said.

But the European Generic Medicines Association said it was in the interests of both patients and healthcare systems that prescribing should take account of the affordability of different drugs. (Editing by Cowell and Jon Loades-)

[Guest guest]

Drugmakers lose fight over cheap UK medicines

Thu Apr 22, 2010 11:22am EDT

Related News

rules against drug industry

Healthcare

* UK schemes promoting use of cheaper drugs not illegal

(Adds reaction from generic drug manufacturers)

By Ben Hirschler

LONDON, April 22 (Reuters) - Drug companies have lost a legal battle against schemes promoted by Britain's state health service that encourage doctors to prescribe cheaper medicines.

The Association of the British Pharmaceutical Industry (ABPI), representing dozens of pharmaceutical firms, had argued that National Health Service prescribing incentive schemes were an illegal inducement under strict European rules on drug promotion.

But the European Court of Justice ruled on Friday they were in compliance with European Union advertising legislation, cheering producers of generic medicines who said such schemes helped ensure value for money.

Under the incentive schemes, British medical practices are rewarded for switching patients to cheap unpatented drugs or prescribing them to new patients who would otherwise have got a more expensive patented medicine.

Individual doctors who share in the profits of medical practices could ultimately benefit from such financial incentives, prompting drugmakers to argue that they breached an EU ban on financial incentives for drug prescribing.

The court, however, decided the prohibition could not apply to national public health authorities who have the responsibility of controlling public expenditure.

The ABPI said it was disappointed by the ruling, which did not follow an earlier opinion of the European Advocate-General.

Isabel Manley, head of the regulatory practice at law firm Bristows, said the ruling would come as a shock to drugmakers.

"Whilst prescribing incentive schemes may have the ultimate objective of reducing national expenditure on medicines, to tolerate them is to pull the teeth out of the European advertising legislation," she said.

But the European Generic Medicines Association said it was in the interests of both patients and healthcare systems that prescribing should take account of the affordability of different drugs. (Editing by Cowell and Jon Loades-)

[Guest guest]

Drugmakers lose fight over cheap UK medicines

Thu Apr 22, 2010 11:22am EDT

Related News

rules against drug industry

Healthcare

* UK schemes promoting use of cheaper drugs not illegal

(Adds reaction from generic drug manufacturers)

By Ben Hirschler

LONDON, April 22 (Reuters) - Drug companies have lost a legal battle against schemes promoted by Britain's state health service that encourage doctors to prescribe cheaper medicines.

The Association of the British Pharmaceutical Industry (ABPI), representing dozens of pharmaceutical firms, had argued that National Health Service prescribing incentive schemes were an illegal inducement under strict European rules on drug promotion.

But the European Court of Justice ruled on Friday they were in compliance with European Union advertising legislation, cheering producers of generic medicines who said such schemes helped ensure value for money.

Under the incentive schemes, British medical practices are rewarded for switching patients to cheap unpatented drugs or prescribing them to new patients who would otherwise have got a more expensive patented medicine.

Individual doctors who share in the profits of medical practices could ultimately benefit from such financial incentives, prompting drugmakers to argue that they breached an EU ban on financial incentives for drug prescribing.

The court, however, decided the prohibition could not apply to national public health authorities who have the responsibility of controlling public expenditure.

The ABPI said it was disappointed by the ruling, which did not follow an earlier opinion of the European Advocate-General.

Isabel Manley, head of the regulatory practice at law firm Bristows, said the ruling would come as a shock to drugmakers.

"Whilst prescribing incentive schemes may have the ultimate objective of reducing national expenditure on medicines, to tolerate them is to pull the teeth out of the European advertising legislation," she said.

But the European Generic Medicines Association said it was in the interests of both patients and healthcare systems that prescribing should take account of the affordability of different drugs. (Editing by Cowell and Jon Loades-)