asked the Secretary of State for Social Services what was the return on capital allowed to pharmaceutical companies in the financial year 1984–85, and the figure he is assuming for 1985–86 in making the estimates for the current year.
[pursuant to his reply, 16 May, c. 226]: For the largest companies, the profit targets in 1984–85 ranged between 15 per cent. and 20.5 per cent. return on (historic) capital; for 1985–86 the range is 15 to 17 per cent. In certain circumstances, companies may be allowed to retain, within prescribed limits, profits in excess of the target rate.