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Pharmaceutical Companies

Volume 81: debated on Wednesday 19 June 1985

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asked the Secretary of State for Social Services what methodology he uses in assessing the allowable level of capital employed by pharmaceutical firms to distinguish between capital employed by them on National Health Service work and that employed on work associated with private prescriptions and general sales list products; and what is his current estimate of the reduction in capital employed which he expects to allow for the current year compared with 1984–85.

Under the pharmaceutical price regulation scheme pharmaceutical companies are required to provide us with an annual detailed statement of capital employed certified by independent accountants. This is analysed between National Health Service medicines and other products. Until we have examined the 1985–86 statements, and made such adjustments as we deem necessary, we cannot say how the capital employed in 1985–86 will compare with 1984–85.