§ Mr. Pavitt
asked the Secretary of State for Social Services if the legal costs involved in the case which commenced in 1972 over the patent rights of the antibiotic Amoxycillin are part of the expenses allowed in pricing arrangements of the firms concerned under the pharmaceutical price regulation scheme.
§ Mr. Moyle
The reasonableness of the prices of medicines supplied to the National Health Service is assessed on the basis of the capital employed and the costs incurred in producing those medicines. An appropriate part of costs indirectly incurred, including legal costs, is taken into account in the proportion of medicines for the National Health Service to the company's total business.