In December 2021, I announced two new Framework Agreements on Pricing and Supply of Medicines 2021-2025.
The multiannual agreements with the Irish Pharmaceutical Healthcare Association (IPHA) and Medicines for Ireland (MFI) represent an important step in reducing the cost of medicines and improving access to innovative new medicines for patients.
The new deals will deliver:
- improved access for patients to new and innovative medicines
- reductions in the cost of existing medicines
- an easing of financial pressure on the health services into the future
It is estimated that this will result in the State paying between €600 million and €700 million less for medicines than it would otherwise.
As a result of these Agreements with IPHA and MFI, the HSE will be in a much stronger position to meet the increasing demand for existing medicines and also to invest in new medicines over the next four years.
The €30m allocated in Budget 2022 will have a further significant impact on the availability of new and innovative medicines, including for the treatment of rare diseases. These new deals also provide greater certainty for industry over the next four years.
The new measures in the Agreement with IPHA include increased rebate contributions from on-patent medicines, closing loopholes in relation to hybrid medicines, and increased savings from off-patent medicines.
A parallel agreement was secured with MFI on behalf of the generic and biosimilar industry in Ireland. This four-year Agreement runs from 1st December 2021 to 30th November 2025 and, like the IPHA Agreement, provides for enhanced price cuts in the case of generic and biosimilar medicines. The provisions of this Agreement will complement the State’s overall efforts in managing the drugs budget, including supporting a competitive market in the off-patent space.
These Agreements followed extensive negotiations and engagement by the Department of Health, alongside partners in the Department of Public Expenditure and Reform and the HSE, with the two organisations concerned.
