John Gormley (Dublin South East, Green Party)
Link to this: Individually | In context

Question 260: To ask the Tánaiste and Minister for Health and Children her views on the huge difference in price between medicines purchased here and those in Spain (details supplied); her plans regarding this problem; and if she will make a statement on the matter. [24530/05]

Mary Harney (Dublin Mid West, Progressive Democrats)
Link to this: Individually | In context

EU member states are the main purchasers of medicines in their domestic markets, through their national reimbursement schemes. While they seek to control drug prices, the extent of control varies widely. Higher priced countries, such as the UK and Germany, rely to a greater extent on market forces to set prices. Spain, on the other hand, closely regulates and controls prices. Ireland's pricing policy is somewhere in the middle of the European league as, with its relatively small market, it must seek to balance value for money in State drug spending with reliability and continuity of supply for essential products. Price comparison in different markets is difficult. Patent protection is well established in Ireland and allows originator companies exclusive rights to the market for ten years for new medicines. In Spain, until 1992 there was no intellectual property protection for medicines and no patent protection for new products. This has kept prices down, but it may change with patent and intellectual property exclusivity, although the long lead-in time for product development and patenting will inevitably delay this. Some products which are prescription-only in Ireland are available without prescription in Spain. While the removal of prescription status for certain products may produce lower prices in Ireland, the products would no longer be available through the community drug schemes.

All aspects of the drug delivery system, from the manufacturer to the patient, are under review. The health service procurement improvement project has analysed the State's procurement of pharmaceutical goods and services. The National Drugs Prescribing Group is evaluating proposals for the control of drugs costs contained in various reports, such as the Brennan report and the Deloitte & Touche report, to determine their feasibility and early delivery as part of the health reform agenda. The agreement in place between the Department of Health and Children, the Irish Pharmaceutical Healthcare Association and the Association of Pharmaceutical Manufacturers of Ireland sets out the supply terms and prices of medicines supplied to the health services. The agreement covers all reimbursable prescription medicines in the general medical services and community drug schemes and all medicines supplied to hospitals and health boards. The Department will shortly be entering into negotiations for a new agreement with the associations.