Mary Harney (Dublin Mid West, Progressive Democrats)

No. These are very controversial areas and they are probably more appropriate for those with medical expertise. I am aware that many countries have protocols regulating when particular drugs may be used, for example, drugs that can cure as opposed to drugs used for an incurable illness. We have not considered going down that road as it is a very sensitive issue. In the first instance it is the intention to get better value in the whole supply chain, whether it is from the manufacturers' piece or the wholesalers' piece or the pharmacy piece. There cannot be a situation whereby we are paying the same price for a drug when it is off patent as when it was on patent. The patent should cover the innovation and I am a strong fan of supporting innovation in the pharmaceutical sector. Innovation is extraordinarily expensive. Many of the innovations never turn into products that can be sold and huge sums of money can be spent in the process. It is clearly a very expensive investment for pharmaceutical companies. I believe the patent period covers the innovation costs and the profits companies are entitled to expect. Therefore when a drug is no longer a branded product I do not believe we should pay anything like that price. This is the approach being taken by the HSE with the Department in these negotiations. Some considerable work has been done by the pharmo-economics division of Trinity College, Dublin, and others in assisting the HSE in this regard.

The Deputy makes an interesting point about private patients. We used financial incentives to encourage GPs to prescribe on the medical card. It is a good idea which we should examine.

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