PROFITS BEFORE HEALTH

"The drug industry is overpricing vital new medicines to boost its profits, the chair of the health watchdog Nice warns today in an explosive intervention into the debate over NHS rationing. Professor Sir Michael Rawlins spoke out after critics last week accused the National Institute for Clinical Excellence (Nice) of `barbarism` for refusing to approve expensive new kidney drugs for NHS use, on the grounds that they were not cost-effective. In an outspoken interview with The Observer, he warned of `perverse incentives` to hike the prices of new drugs - including linking the pay of pharmaceutical company executives to their firm's share price, which in turn relied on keeping profits healthy. Traditionally some companies charged what they thought they could get away with,"
(Observer, 17 August) RD