Joe Costello (Dublin Central, Labour)
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Question 27: To ask the Minister for Health and Children if she has had discussions with a view to reducing the price of generic medicines; if she expects such price reductions to follow on from the reduction in price of many branded items; and if she will make a statement on the matter. [6970/10]

Mary Harney (Dublin Mid West, Independent)
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I have had discussions with the two representative bodies of drugs manufacturers - the Irish Pharmaceutical Healthcare Association (IPHA) and the Association of Pharmaceutical Manufacturers in Ireland (APMI) - with a view to securing significant savings in the State's drug bill. Agreement has been reached with IPHA on price cuts of 40% for a large number of drugs and medicines with effect from 1 February. In addition, the rebate paid by IPHA member companies to the Health Service Executive in respect of drugs supplied under the GMS scheme has been extended to include all community drugs schemes and increased from 3.53% to 4%. The combination of these measures plus consequent savings in wholesale and retail mark-ups are expected to result in savings of approximately €94m in a full year.

I am disappointed to say that APMI member companies have declined at this stage to offer any reductions in the price of the generic drugs and medicines that they supply at this time. The current agreement with APMI expires in September 2010 and it is my firm intention to obtain savings from APMI of at least an equivalent level to those secured from IPHA.