€442m paid by HSE to pharma firms

New figures show that three units of Irish-based drug giant UDG Healthcare received payments totalling over €112m from the HSE in 2013.

€442m paid by HSE to pharma firms

According to the HSE’s newly published statistical analysis for 2013, the amount received by three of UDG’s Irish subsidiaries totalled €112.4m in 2013.

The payments to the UDG (formerly United Drug) firms make up over 25% of the total amount of €442.2m paid out by the HSE to pharma firms in 2013 in ‘hi-tech wholesale and manufacturer payments’.

The figures show that United Drug Wholesale (Dublin) received €54m with United Drug plc Limerick receiving €33.63m and United Drug plc Ballina netting €24.7m in fees.

The €442m paid by the HSE represents a 15% increase on the €385m paid out to pharma firms under the scheme the previous year.

The figures show that the top amount the HSE paid to one individual entity was €89m, which went to Abbvie Ltd, a spinout company from Abbott. It was founded in January 2013 with the goal to market groundbreaking science to solve the biggest health problems that face the world.

Pfizer Ltd — which recently announced it was reversing a decision to close its manufacturing facility in Little Island, Cork, safeguarding some 160 jobs at the facility — received €57m in 2013.

Movianto, which says it develops and implements streamlined logistics and distribution solutions on a European, regional, and local level, received €44.4m in payments in 2013.

Other firms to feature in the list include Vertex Pharmaceuticals which received €16m, and Cahill May Roberts which received €14.15m.

The payments to the pharma firms came after the Irish Pharmaceutical Healthcare Association reached a three-year agreement, in October 2012, with the Department of Health on the supply of medicines.

It said these medicines would yield in excess of €400m in savings to the State.

As well as offering substantial price reductions, the industry agreed a process to ensure that Irish patients would have timely access to new products over the period.

More in this section

Price info

Subscribe to unlock unlimited digital access.
Cancel anytime.

Terms and conditions apply

The Business Hub

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
Puzzles logo

Puzzles hub

Visit our brain gym where you will find simple and cryptic crosswords, sudoku puzzles and much more. Updated at midnight every day. PS ... We would love to hear your feedback on the section right HERE.

News Wrap

A lunchtime summary of content highlights on the Irish Examiner website. Delivered at 1pm each day.

Sign up

Our Covid-free newsletter brings together some of the best bits from irishexaminer.com, as chosen by our editor, direct to your inbox every Monday.

Sign up