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Arbitration Panel finds pharmaceutical scheme constitutes binding contract

19/06/12

The Arbitration Panel appointed under the 2005 Pharmaceutical Price Regulation Scheme, a scheme regulating the prices at which pharmaceuticals may be supplied to the Department of Health, has held that the scheme constitutes a binding contract between the Department of Health and scheme members. This followed the decision of Mr Justice Cooke in GlaxoSmithKline v Department of Health [2007] EWHC 1470, where it had been held that the 1999 scheme (the predecessor scheme) was also a contract. The Department of Health argued that the 2005 scheme was materially different from the 1999 scheme, and did not create binding rights and obligations, but this argument was rejected by the Panel.

The judgment is here.

Edward Harrison acted for Teva UK Limited.