Ms Sandra Gannon:

We have presented these proposals to the HSE, the Departments of Health and Public Expenditure and Reform and remain open to engaging with them.

We have recently received notice of a further second round cuts to reference price. Let me give members an example of those price cuts. It is proposed that the cost of a month's supply of the 10 mg pack of Atorvastain under the new proposed reference price is €2.52. If this is to be the case, let me outline the financial scenario that will unfold. The State will recoup €2.50 from the patient in the form of the prescription charges, the manufacturer of the drug will earn €2.52, from which the manufacturer will have to pay for the manufacturing of the medicine and packing it in a unique Irish packet. It will also have to pay for the transportation of that product to the Irish market and pay the wholesaler to control the drug and distribute it across the Twenty-six Counties. The manufacturer will have to pay the Health Products Regulatory Authority the annual maintenance fees and licence fees and also the fees to maintain pharmacovigilance for the product in the marketplace, and all of that for a cost of €2.52. In effect, it means the State will recoup almost 100% of the cost of the medicines and those companies who meet the reference price, who need to manufacture, transport and comply with quality and regulatory requirements, carry all the risk and are not able to make a return on that level of pricing. I wish it were otherwise but this approach is simply not sustainable.

The challenge for all of us, Government, the pharmaceutical industry and retail pharmacy, is meeting patients' needs sustainably. We know that 2015 is a major year for all of those involved. The decision-makers in the negotiations have important choices to make. We urge them and the members of the committee to intensify reforms and grasp the opportunities on offer. We take a balanced view of the future.