Dáil Éireann díospóireacht -
Tuesday, 8 Dec 1998

Vol. 498 No. 1

Written Answers. - Medicinal Products.

Brendan Smith

Ceist:

262 Mr. B. Smith asked the Minister for Health and Children if his attention has been drawn to the serious concern in relation to the price of some medication (details supplied) compared to prices in Northern Ireland; and if he will make a statement on the matter. [26750/98]

Minister for Health and Children (Mr. Cowen)

The cheapest 300 mg strength allopurinol tablets available on the Irish market are Allopurinol tablets from Cox which have an ingredient cost of IR£8.46 for 100 tablets. On a pro rata basis this is an ingredient cost of IR£2.37 for 28 tablets. There are two different brands of Allopurinal 300 mg tablets in a 28 pack size on the Irish market. Caplenal tablets have an ingredient cost of £5.89 and Zyloric tablets have an ingredient cost of £8.95. While a tariff price, flat rate, system for non-branded generic drugs operates in the UK, I understand that the UK ingredient cost of Caplenal tablets 300 mg in a 28 pack size is £3.55 sterling and the ingredient cost of Zyloric 300 mg in a 28 pack size is £7.86 sterling.

Where these products are dispensed to patients under the general medical services scheme, the pharmacist is paid the ingredient cost of the medicine plus a dispensing free, currently £1.77. Where these items are dispensed privately, the price of the product is the ingredient cost, plus a dispensing fee, plus a retail mark-up of 50 per cent. The Department has no function in determining the retail mark-up or the dispensing fee in respect of the private dispensing of medicines, as these were established on the basis of tradition and practice.

The price of drugs and medicines ex manufacturer in Ireland has been subject to control since 1972 through the mechanism of formal multi-annual agreements with the Irish Pharmaceutical Healthcare Association — IPHA, formerly the Federation of Irish Chemical Industries — FIC. Due to the nature of the pricing agreements with the pharmaceutical industry some discrepancies exist between the prices of individual products in Ireland and the UK. Price differentials in respect of generic prescription medicines are due in large measure to a vibrant generic market in the UK and in Northern Ireland where the overall market is much larger and where there is significant competition that affects prices charged for generic medicines.

However, overall the current agreement has resulted in a stabilisation of prices in Ireland as compared with the rest of Europe given that a price freeze on the price of medicines to the Irish market exists for the duration of the current agreement. Generally Irish prices for the ingredient cost of prescription medicines are in line with prices in the UK and Northern Ireland.