Ireland agrees deal on medicines
pharmafile | June 28, 2012 | News story | Business Services, Sales and Marketing | AstraZeneca, IPHA, Ireland, Lundbeck, Novartis, pricing
Ireland’s pharmaceutical industry has agreed a deal with the country’s government which breaks a deadlock over prices and access.
The deal includes an interim cut to medicines prices aimed at saving €20 million over a year, while still allowing new products to be reimbursed through the health service. This will contribute to a larger €120 million the government wants to cut from its medicines budget this year.
The deal comes after the Irish Pharmaceutical Healthcare Association (IPHA) has protested that recently launched new medicines have been refused reimbursement.
These have included AstraZeneca’s Brilique, Novartis’ Gilenya and Lundbeck’s Sycrest.
Now an offer to guarantee lower prices in generic medicines has secured a deal. It renews an agreement which sees automatic price cuts to off-patent drugs when a generic equivalent is launched.
The price of the original product is reduced by 20% on the launch of the generic, and by a further 15% after 22 months – this initial price cut has now been raised to 30 per cent.
The IPHA has agreed this extra 10% price cut will be applied retrospectively to drugs which have already gone through the system.
Access to new medicines is the most important factor for the industry, and Ireland’s Health Service Executive (HSE) has agreed to take a different approach to new medicines approvals.
The IPHA says it welcomes the deal agreed by minister for health Dr James Reilly, which it says will produce immediate savings and allow for the “full and proper implementation of the existing supply agreement by ensuring that new medicines can be reimbursed”.
The industry says it also paves the way for full negotiations on a new pricing agreement.
IPHA president David Gallagher said: “This is a good day for Irish patients who will now have broad universal access to new innovative therapies restored. A key strength of the Irish healthcare system over many decades, has been early access to the full range of modern therapeutically advanced medicines to all patients, regardless of income, and we are delighted to have been able to work with the department of health to ensure that this access can be restored.”
In December last year the Irish government unveiled a €2.2 billion of spending cuts in an austerity budget aimed at cutting its huge deficit.
More than half of the cuts will come from budgets in welfare, health and education.
Andrew McConaghie
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