V779 - Profit From NHS Purchased Pharmaceuticals (Second Reading) Watch

Poll: Should this bill be passed into law?
As many are of the opinion, Aye (20)
48.78%
On the contrary, No (8)
19.51%
Abstain (13)
31.71%
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Birchington
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V779 - Profit From NHS Purchased Pharmaceuticals (Second Reading), TSR Conservative and Unionist Party
PROFIT FROM NHS PURCHASED PHARMACEUTICALS BILL 2015



A Bill to legislate a limit upon the percentage gross profit that can be generated from vital pharmaceuticals for purchase by the NHS.
____________
BE IT ENACTED by The Queen's most Excellent Majesty, by and with the advice and consent of the Commons in this present Parliament assembled, in accordance with the provisions of the Parliament Acts 1911 and 1949, and by the authority of the same, as follows:

1. DEFINITIONS
(1) 'Pharmaceutical Company' shall refer to any business registered in the United Kingdom under Companies House that produces any drug.
(2) 'Drug' shall refer to any chemical or biological substance that is intended to treat or prevent disease in humans.

2. RESTRICTIONS ON NET PROFIT PER UNIT
(1) All drugs produced for consumption by the NHS and all NHS subsidiaries therein shall be subject to a net profit limit of 150% per unit before research costs have been recuperated.
(2) After research costs have been recuperated, such drugs produced for consumption by the NHS and all NHS subsidiaries therein shall be subject to a net profit limit of 25% per unit.

3. ENFORCEMENT AND PUNISHMENT
(1) Any Pharmaceutical Company found to be in breech of this Act shall be subject to a fine, that shall be a percentage of the Company's reported net profit for the year of when the offence was committed. The fine shall be decided upon by judicial discretion, but shall not exceed 80%.
(2) The Department of Health shall be charged with enforcing the above. In the event that any breeches of the above are found, an application shall be made to the Crown Prosecution Service.
(3) Trading, Profit and Loss Accounts must be submitted by these companies at least bi-annually for inspection, or else whenever the Department for Health demands it.
(4) Any legal proceedings taken by the Crown Prosecution Service shall be made in conjunction with the Companies Act of 2006, or else the most recent legislation regarding the prosecution of companies.

4. EXEMPTIONS
(1) Any exemptions to the above shall be granted by the Department for Health.

5. CONCESSIONS FOR RESEARCH
(1) The Department for Health shall be responsible for the allowance of any concessions on said profit in the name of research.
(2) The Company must provide sufficient evidence that any funds generated by concessions granted as a result of 4(1) have been used appropriately.
(3) Any misuse of concessions granted in accordance with 4(1) shall be treated as an offence as outlined in 3.

6. REPORTING PROFIT IN THE FINAL ACCOUNTS
(1) Research costs must be shown outside of 'less expenses' of the Profit and Loss Accounts, or else outside of the Trading Accounts.

7. COMMENCEMENT, SHORT TITLE AND EXTENT.
(1) This Bill may be cited as the Drugs Profits Bill 2015
(2) This Bill shall extend to the entire United Kingdom; and
(3) Shall come into force immediately following Royal Assent.


Notes
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1. The cost of prescriptions to the NHS last year was £14.4bn, and it is estimated that this Bill could save the NHS ~£4.3bn. This is of course subject to fluctuations in demand. Drug companies have been holding the NHS to ransom with regard to unit price; and it is clear that previous measures have not gone far enough.
Redmayne - GSK Accounts
BBC - Pharmaceutical Industry Gets High on Fat Profits
Telegraph - Companies Boast of Large Profits on Drugs That Cost Pennies
The Motley Fool - Profiteering Motive for Pharmaceutical Shareholders
EOHS - Regulating Pharmaceuticals
NHS Trust - Accounts

Changes for Second Reading
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Changes for second reading;
2(1) has been altered in order to make it easier for companies to cover the cost of research, if they are not granted concessions.
2(2) has been altered in order to cut out excessive profiteering after the cost of research has been covered.
3(3) has been introduced to ensure accounts are inspected regularly, to avoid 'bogus' accounting to avoid the caps.
6(1) has been introduced to make the enforcement of 3(3) less complicated, and to allow members of the public and shareholders to see a full breakdown of costs, where previously, research costs could be expressed as 'contribution per unit'.
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Aph
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So making companies who don't even operate in the UK spend money just to submit reports to up? Not gonna happen.
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thehistorybore
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Aph hasnt read the bill properly. Ignore him.

AYE
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Aph
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(Original post by thehistorybore)
Aph hasnt read the bill properly. Ignore him.

AYE
Well in that case drugs companies who only sell to us don't have to comply?
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thehistorybore
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(Original post by Aph)
Well in that case drugs companies who only sell to us don't have to comply?
Of course they have to comply. The exemptions were designed to be given for highly niche drugs, if that's what you're on about.
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Aph
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(Original post by thehistorybore)
Of course they have to comply. The exemptions were designed to be given for highly niche drugs, if that's what you're on about.
Section 1 paragraph (1). I can be set up in America have nothing to do with the U.K. a but sell to the NHS and I'm not subject to this bill.
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thehistorybore
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(Original post by Aph)
Section 1 paragraph (1). I can be set up in America have nothing to do with the U.K. a but sell to the NHS and I'm not subject to this bill.
Well then, if you're not selling anything unique, I'd buy elsewhere.

If you're 'setting up' it will be an awfully long time until you're selling anything new to us, and your comapny would probably be brought out by the Giants (as honourable members reminded me, that is the way the drug industry works).

If you're already registered/established in the UK (eg Bayer/Glaxo), the cost of relocation would be far greater than any cost incurred by this Bill.
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Birchington
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Ayes to the right: 20
Noes to the left: 8
Abstain: 13

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