UK's Largest Drugs Companies Warn of Devastation from New Flu Treatment Ban

The UK's three largest drugs companies, Glaxo Wellcome, AstraZeneca, and SmithKline Beecham, have jointly warned Prime Minister Tony Blair that their industry could be devastated if the government prevents doctors from prescribing Glaxo's new flu treatment, Relenza, on the National Health Service. The companies, with a combined turnover of £27bn, claim that the National Institute for Clinical Excellence's (Nice) recommendation to ban Relenza on the NHS will create a new competitive hurdle for British drugs companies operating in a global market. This move has significant implications for the future of the British-based pharmaceutical industry, which is a major contributor to the UK's economy.

Key Takeaways:

• The three largest UK drugs companies, Glaxo Wellcome, AstraZeneca, and SmithKline Beecham, have joined forces to warn Prime Minister Tony Blair of the devastating consequences of banning Relenza on the NHS.
• The combined turnover of the three companies is £27bn, demonstrating the significant impact of the ban on the UK economy.
• The companies claim that Nice's recommendation will create a new competitive hurdle for British drugs companies operating in a global market.
• Glaxo has already announced 3,400 job losses worldwide, including 1,700 in Britain, in a restructuring of its manufacturing operations.
• The companies argue that any savings to the NHS from restricting access to new medicines would be "insignificant" compared with losses to the UK economy from the loss of the country's high standing in the international pharmaceutical industry.
• Relenza costs £24 for a five-day course, and estimates of the potential cost to the NHS, if it were readily available, range from £5m to £100m a year.

Statistics:

• The combined turnover of Glaxo Wellcome, AstraZeneca, and SmithKline Beecham is £27bn.
• Glaxo has announced 3,400 job losses worldwide, including 1,700 in Britain.
• Relenza costs £24 for a five-day course.
• Estimated potential cost to the NHS if Relenza were readily available: £5m to £100m per year.

Sources:

• Financial Times, Page 4, 1999.