Vol. 520 No. 5
134 Mr. Allen asked the Minister for Health and Children if his attention has been drawn to a recent statement by the US Government which states that pharmaceutical companies are charging too much for drugs and they are also engaged in what investigators describe as deceptive industry pricing practices; and if he has satisfied himself that such practices are not in operation here. [16319/00]
I am aware of an article recently published in an Irish medical journal which refers to the investigation by the US Government and which is suggestive of excessive drug prices and of "deceptive industry pricing practices".
The position in this country is that the price, ex-manufacturer, of drugs and medicines prescribable and reimbursable in the general medical services – GMS – scheme and community drug schemes is controlled through multi-annual agreements between the Department of Health and Children, the Irish Pharmaceutical Healthcare Association and the Irish Pharmaceutical Manufacturers Association.
The current agreement provides that the maximum price to the wholesaler of any new item of medicine introduced to the market and covered by the agreement shall not, on the date of notification, exceed the currency adjusted United Kingdom wholesale price or the average of a basket of EU countries, whichever is the lower. A price freeze is also in place in regard to the prices charged for existing products. Within these limits, it is a matter for the various manufacturers to determine the amounts that the various component elements contribute to the price of a medicinal product as placed on the market in this country. These costs would include elements to recover their research and development costs and would be in addition to the costs of the various component raw materials, production and of marketing.
I am satisfied that the current agreement with the industry represents value for money for the taxpayer. I am not aware of any "deceptive industry pricing practices" but would be happy to examine this further if the Deputy has particular products or practices in mind.
