ABSTRACT
Expenditure on pharmaceuticals normally amounts to 10 to 20 per cent of health expenditure in developed countries and 20 to as much as 60 per cent of expenditure in developing countries. From a health point of view, the purpose of planning pharmaceutical expenditure is to secure value for money. The pharmaceutical industry was also concerned that World Health Organisation was interfering with its free market and again was backed by the government of the world’s largest producer - the United States. The United Kingdom has a different system of regulation which is based on profits earned from the National Health Service rather than on price, though companies have to apply if they want to increase their prices. The role of exports also affects whether countries restrict the range of products which can be prescribed under compulsory health insurance or the health service.
