The enormous problem facing the Prescription Pricing Authority in dealing with backlogs created by the huge volume of category D drugs last year 'is improving with each month that passes', says the organisation's annual report. The difficulties began in 1999, when supply-chain changes created a shortage of a number of generic medicines, causing them to fall into the now-defunct category D. The lengthy delays in processing prescriptions and paying reimbursements dominated the authority's activities last year, but it managed a successful recovery and is now contributing to the NHS plan through initiatives such as electronic prescribing, the report says. As the report was published, junior health minister Lord Hunt announced that the price cap on generics introduced last August after prices spiralled will remain unchanged.