Pharmacy Regulations

Dáil Éireann Debate, Thursday - 25 June 2015

Thursday, 25 June 2015

Questions (199, 209)

Caoimhghín Ó Caoláin

Question:

199. Deputy Caoimhghín Ó Caoláin asked the Minister for Health in view of the fact that the Economic and Social Research Institute report, Delivery of Pharmaceuticals in Ireland – Getting a Bigger Bang for the Buck, published in January 2012, stated that prices of new pharmaceuticals, subject to patent protection, could be reduced further by setting the ex-factory price with reference to the lowest priced comparator member state, and that an examination of data for the past number of years suggests that prices would decline by 20% to 25%, if such an approach were adopted, if he will quantify the savings which could be made by introducing this measure with immediate effect; and if he will make a statement on the matter. [25636/15]

Caoimhghín Ó Caoláin

Question:

209. Deputy Caoimhghín Ó Caoláin asked the Minister for Health the full-year savings that would be made by introducing, with immediate effect, a measure setting the ex-factory price for new pharmaceuticals, subject to patent protection, with reference to the lowest priced comparator European Union member state. [25665/15]

Written answers

Minister for Health

I propose to take Questions Nos. 199 and 209 together.

In 2012, the State entered into a new three-year price reduction Agreement with the Irish Pharmaceutical Healthcare Association. Under this Agreement, prices are set by reference to the average of the approved prices across a basket of 9 EU Member States. This Agreement remains in place until 31st October this year.

As the end of the current Agreement approaches consideration is being given to a range of options available to the State in seeking to deliver further savings on the cost of drugs. Such options include entering into a new Agreement with the Irish Pharmaceutical Healthcare Association as well as the possibility of using the legislative powers afforded to the HSE under the Health (Pricing and Supply of Medical Goods) Act 2013 to review and alter prices.

An important objective in any new arrangement will be to secure significant savings on the projected cost of drugs, as well as continued access to cost effective treatments. Since such savings may be the subject of negotiations with industry, I do not wish to place the State's detailed position or estimated savings into the public domain in advance.