Reilly claims deal worth €400m on cost of drugs

The Health Minister James Reilly is claiming a deal on the cost of drugs that will be worth €400m over the next three years.

The three-year deal will involve savings of €200m on the cost of drugs in the health service and mean cheaper drugs for people.

In a statement Reilly says it will also provide cheaper access to new and innovative high-tech drugs for the treatment of serious illnesses.

On patent expiry, the price to the wholesaler of a medicine will be reduced to 70% of the original price. 12 months following this price reduction, the price to the wholesaler will be reduced to 50% of the original price.

For existing patent expired medicines, the price to the wholesaler will be reduced to 60% of the original price on November 1, 2012. This will be followed by a further reduction to 50% of the original price to the wholesaler 12 months later.

A once-off downward price realignment will apply to the currency-adjusted average price to the wholesaler in the nominated EU member states on all on patent medicines and off patent unique medicines.

The Irish Pharmaceutical Healthcare Association (IPHA) welcomed the deal.

According to David Gallagher, the outgoing president who led the negotiations on behalf of IPHA, “Ireland has a strong record in ensuring that patients can access new advanced therapies.

“This new agreement provides assurance for Irish patients that they will be able to get new medicines when they become available.

“Medicines are a key pillar of any advanced health system and medical innovation has extended life expectancy through reducing illness and death. Many patients are in need of new, advanced medicines in areas such as Alzheimer’s Disease, arthritis, cancer, stroke prevention, multiple sclerosis and cystic fibrosis.”

Expenditure on medicines has been falling since 2009 and is now fifth lowest in Europe at 11.7% - despite an increasing level of medicine usage, according to the IPHA.

Orlaith Brennan, Commercial Affairs Director of the IPHA said: “We understand the enormous fiscal challenges facing the country, but it is important to ensure that patient’ needs and expectations can continue to be met.

“This deal offers value and savings to the State and patients, and ensures that the full range of modern therapeutically advanced medicines continue to be available to Irish patients in spite of current economic difficulties”.