Medicines price deal knocks 20% off leading drug costs

THE price of nearly 600 medicines will fall by a fifth from today on foot of an agreement between the pharmaceutical industry and the Health Service Executive (HSE).

The new pricing structure will mean significant cost savings for consumers on a number of leading medicines.

These include:

Cholestrol-lowering drug Lipostat, drown from €33.90 to €27.12 for a 28-tab pack.

Depression drug Seroxat down from €40.78 to €32.72 for a 30-tab pack.

Tummy upset drug Motilium down from €16.38 to €13.11 for a 100-tab pack.

Augmentin, for bacterial infections, down from €16.65 to €13.32 for a 21-tab pack.

Depression drug Prozac down from €40.78 to €32.63 for a 30-tab pack.

Zantac, for acid indigestion and heartburn, down from €60.87 to €48.69 for a 60-tab pack.

Tagamet, for treatment of ulcers, down from €38.37 to €30.69 for a 60-tab pack.

The agreement was made between the Irish Pharmaceutical Healthcare Association (IPHA), the HSE and the Association of Pharmaceutical Manufacturers of Ireland (APMI).

It applies to post-patented drugs, where the patent (intellectual copyright) has expired after 25 years, and generic drugs, meaning drugs produced after a patent has expired but based on the original product.

The post-patented agreement was made with the IPHA and the generic drugs agreement was reached with the APMI.

President of the IPHA Mr John McLaughlin said: “We hope the substantial savings achieved through our action today will allow for greater investment by the HSE into the most advanced, innovative, cost effective medicines.”

The IPHA said it is planned that the price of these medicines will fall by a further 15% on January 1, 2009.

The Irish Pharmaceutical Union (IPU) has also welcomed the new pricing structure.