Joan Burton (Dublin West, Labour)
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Question 43: To ask the Minister for Health and Children the amount of savings there will be as a result of the reduction in the price of branded medicines announced in February 2010; the steps she is taking to ensure that persons that have to pay for their medicines over the counter benefit from the price reductions; and if she will make a statement on the matter. [6969/10]

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 (AMPI) -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 (HSE) 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. The Health Professional (Reduction Of Payments To Community Pharmacy Contractors) Regulations 2009 sets out the fees and margins for dispensing under the GMS and Drugs Payment Scheme (DPS). In addition, the relevant agreements with manufacturers set out the ex-factory price of products. Any person availing of the DPS should therefore see a reduction in the price to them of the relevant medicines which were subject to price cuts on 1 February.