Drugs firms deny driving up prices

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

Professor Sir Michael Rawlins, the chairman of the National Institute for Clinical Excellence (Nice), complained that the industry was subject to "perverse incentives" to hike prices.

But Richard Barker, director general of the Association of British Pharmaceutical Companies, launched a counter-attack on Nice's policy on cancer drug approval.

Nice faced scathing criticism for refusing to sanction the use of new kidney drugs by the NHS on the grounds of cost.

Mr Barker said: "Pharmaceutical companies invest an average of more than £500 million over more than a decade to bring new medicines to patients. If they do not earn a reasonable return on this research and development cost, their investors will not support this, and the supply of modern medicines that enhance and save lives will dry up.

"What Nice fails to mention is that the medicines in question are in common use elsewhere in Europe, where prices are typically higher than they are here in the UK.

"Nice has an important job to do, but they need to adapt their approach for cancer medicines, rather than lay the blame on the process and economics of pharmaceutical innovation."

His comments come in response to Sir Michael's interview with The Observer. Sir Michael said: "We are told we are being mean all the time, but what nobody mentions is why the drugs are so expensive."

He added: "The share price is very important to a pharmaceutical company. Pharmaceutical companies have enjoyed double-digit growth year on year and they are out to sustain that, not least because their senior management's earnings are related to the share price.

"It's not in their interests to take less profit, personally as well as from the the point of view of the business. All these perverse incentives drive the price up."