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Regulation 4

THE SCHEDULE

PENALTIES

1.  The daily penalty payable by a relevant scheme member who contravenes regulation 3(5) or (6) or both provisions shall be calculated by reference to—

(a) the entry in column (1) of the following table within which the total value of his sales for the health service falls;

(b) the amount specified in column (2) opposite that entry in respect of each day of the contravention; and

(c) the amount specified in column (3) opposite that entry in respect of each subsequent day of that contravention.

THE TABLE

Health service sales of relevant scheme member Daily penalty for first 14 days Daily penalty for subsequent days
Column (1) Column (2) Column (3)
Less than £100 million £2,500 £5,000
£100 million or more £5,000 £10,000

2.  For the purposes of this Schedule, the health service sales of the relevant scheme member shall be calculated at the time the penalty becomes payable by reference to the amount recorded by that scheme member in the Annual Financial Return most recently submitted by it.

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations, which apply to the United Kingdom, require the provision of information in relation to the prices of branded medicines which are supplied for the purposes of the health services in England, Wales, Scotland and Northern Ireland (see the definition of “health service” in section 266(6) of the National Health Service Act 2006).

These Regulations apply only to medicines in respect of which marketing authorisations have been granted that are supplied by companies which are members of the Pharmaceutical Price Regulation Scheme (PPRS). The 2005 PPRS is the present voluntary price regulation scheme. It was agreed in November 2004 between the Department of Health and the Association of the British Pharmaceutical Industry and came into effect on 1st January 2005. The PPRS is available on the Department of Health’s website at http://www.dh.gov.uk/PublicationsAndStatistics/Publications/PublicationsPolicyAndGuidance/PublicationsPolicyAndGuidanceArticle/fs/en?CONTENT_ID=4093228&chk=qW14At.

Regulation 3 requires information on the sales of branded health service medicines to be supplied to the Secretary of State.

Provision is made for the recovery of penalties where there is a failure to provide information under regulation 3 and for appeals (regulations 4 and 5).

Transitional provision is made for the period before the coming into force of these Regulations which would otherwise fall within the scope of these Regulations (regulation 6).

Regulation 7 revokes various Regulations which no longer reflect the current policy on statutory price controls of medicines supplied for NHS purposes.

A Regulatory Impact Assessment has been prepared and copies may be obtained from the Department of Health, Zone 456D, Skipton House, 80 London Road, London, SE1 6LH.