Sections relating to the control of the cost of health service medicines Statutory scheme
Sections 262 to 266 of the NHS Act 2006 provide the Secretary of State with the power, including by way of a statutory scheme, to limit the prices which may be charged by any manufacturer or supplier for the supply of any health service medicine, or to limit the profits which may accrue to any manufacturer or supplier in connection with the manufacture or supply of any health service medicines by way of regulations or directions.
	The current statutory scheme is set out in regulations2 and applies to any manufacturer or supplier of branded health service medicines who is not a member of the voluntary scheme. The current statutory scheme operates through a cut in list price (i.e. the manufacturer’s published price).