Dáil Éireann Debate, Wednesday - 1 February 2023
248. Deputy David Cullinane asked the Minister for Health if, given research showing medicine manufacturers in Ireland are getting paid up to four times as much for their products in the UK and seven other EU member states, he accepts that price is one of the factors contributing to the ongoing high level of medicine shortages. [4993/23]
Amharc ar fhreagraTwo new Framework Agreements on Pricing and Supply of Medicines 2021-2025 were signed in December 2021. These Agreements provide stability to the medicines reimbursement market for the State and for Industry, thus facilitating sustainable and affordable access to medicines for patients in Ireland over the next 4 years.
Negotiations towards these new Agreements with industry began in May 2021, against a backdrop of a growing annual drugs budget, up from €1.95bn in 2016 to almost €2.25bn by 2020.
The multiannual agreements with the Irish Pharmaceutical Healthcare Association (IPHA) and Medicines for Ireland (MFI) represent an important step in facilitating access to innovative new medicines for patients. The IPHA represent the originator and on-patent biopharmaceutical industry; MFI represent the non-originator, and off-patent biopharmaceutical industry in Ireland.
There are a number of clauses set out in both agreements in detail, which provide clear pricing rules for applicant companies, that have been agreed between the State and main Pharmaceutical Industry representative groups in Ireland as appropriate and intended to provide a predictable environment for Marketing Authorisation Holders (MAHs) to supply their products (and prevent shortages). These are grossly summarised as:
The pricing application form for new medicines is based on a basket of 14 countries (13 EU Member States and the UK). Pricing is permitted to be no more than the average price based on the pricing in these 14 countries.
The pricing of non-patented medicines (i.e., generic, biosimilar or hybrid medicine marketed in Ireland) is based on the originator medicine at a specific time point.
Under the terms of the agreement, there is scope for the Department of Health, the HSE, and industry to continue to maintain their engagement throughout the lifetime of the agreement on all matters pertaining to the agreement.
In the interests of continuity of supply, where it becomes uneconomic for a Supplier to supply a particular medicine under the terms of the Agreements, direct representations may be made by the Supplier to the HSE for variation of any term of the Agreement, in relation to that medicine, including its price terms. Where representations are made by the Supplier to the HSE, the HSE shall have the final decision on whether to vary the terms of the Agreement in any case, but will consult with the Supplier before reaching its decision. The HSE expects a robust submission of evidence to support any claim, from any Supplier, in the event that they wish to set out to the Executive an inability to meet pricing terms set out in said Agreements.
As of January 2023, there are 9 applications from 6 separate manufacturers/suppliers currently under review by the HSE, for a pricing increase request related to a claim of increased cost of goods making continuity of supply to the Irish market and Irish patients unsustainable.
In the case of such pricing increase requests the time taken to adjudicate on these is highly variable (on a case-by-case basis) and dependent on a number of factors, that the HSE is required to consider including the number of alternative suppliers for that medicine, the potential alternative therapeutic options, the clinical need for the product, the potential budget impact, and European pricing.
The HSE also takes an active role at the time of notification, in engaging with manufacturers/suppliers intending to discontinue priority medicines due to the lack of commercial viability of those products. In many of the cases where this arises as a scenario, the commercial decision relates to global discontinuations and is outside of the control of the HSE i.e., cannot be addressed through pricing increases at a national level.
The Agreements are the product of extensive collaboration between the State, HSE, and Industry. They remain current and appropriate for their purpose since their signing in December 2021.
