This state we're in

A report by the UK Government's Health Select Committee contains claims against the UK pharma industry that are completely unfounded, says the ABPI. Ian Shine reports.

The UK Health Select Committee's (HSC) report on The Influence of the Pharmaceutical Industry contains 'a number of fundamental misconceptions', alleges the ABPI, despite its 'rightly acknowledg[ing]' that the industry in the UK has 'improved many people's quality of life, and reduced the need for surgical intervention and the length of time spent in hospitals'.Dr Richard Barker, director general of the ABPI, drew particular attention to claims in the report that:

UK consumption of drugs is increasing;

a prescribing explosion is often seen in the months following a product launch;

intensive marketing...encourages inappropriate prescribing.

Responding with evidence to the contrary, Barker said that: 'the UK remains bottom of the European league in spending per head on medicines, which remains steady at 12% of the total NHS bill..and has among the lowest usage of new medicines across Europe during their first five years on the market.

'The market share for medicines launched within the last five years in Britain is only 16%, compared with 28% in the US and higher proportions in countries such as Spain, Switzerland, Germany, France, Italy and Japan.'

With HSC claims about marketing practices in the pharma industry all but calling it corrupt, Dr Barker was keen to point out that: 'most doctors receive only a handful of visits per month, and the majority say that they value the clinical and product information available'.

The ABPI has taken steps, particularly over the last 18 months, to improve the transparency of the industry, with its member companies agreeing to make public the details of new clinical trials in the UK through the association's website, thereby pre-empting proposals in late 2004 to establish a worldwide register of clinical trials on new prescription-only medicines.

Correspondingly, it does not wish to see legislation put in place that will unnecessarily restrict doctors' abilities to receive information about medicines or to prescribe medicines already licensed for use.

challenging times

The last 12 months have already been challenging for the industry, with the emergence of China and Eastern Europe as cheaper sites for r&d (tax incentives are also on offer in Singapore and China); the recent withdrawal of high-profile drugs under controversial circumstances; and a PPRS (Pharmaceutical Price Regulation Scheme) imposed price cut of 7%, despite a reduction in real terms of 18% over the last 10 years.

Alongside continued activity on the part of animal extremists and an eroding graduate science base in the UK, the ABPI fears that increasing overheads and bureaucratic interference could push potential investors away from the UK.

'The increasingly competitive nature of the global market means that the industry cannot rest on its past achievements; it needs to move with the times,' said Vincent Lawton, ABPI president. 'There are challenges to national competitiveness, including over-regulation and parochial thinking, that are at odds with the global nature of the pharmaceutical industry, and of which European nations must be aware. No company can be expected to invest in the UK if the environment here is not sufficiently welcoming.'

trade fears

Lawton's fears seem justified, as despite returning a trade balance of £3.4bn in 2003, the third highest of any industry in the UK, this was £200m lower than the previous year. Capital expenditure by British-based pharmaceutical companies also fell, from an average of £925m over the last five years to £753m in 2003.

'I hope that these figures indicate just a temporary blip,' he said, 'but the dangers of the UK losing out to other countries are very real. We have to be aware of these blips and make sure that they do not become shifts.'

Overall, the ABPI sees the industry as being in good condition, with the UK developing around a quarter of the world's top-selling medicines and experiencing record export levels. It realises that it will have to face up to tabloid scaremongering and scepticism by promoting openness and transparency across the healthcare system, and is giving out positive messages by announcing the undertaking of a major review of its Code of Practice to ensure public confidence in industry self-regulation.