Billy Kelleher (Cork North Central, Fianna Fail)
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Question 345: To ask the Minister for Health and Children the meetings or talks he has had with clinicians and the drugs industry with a view to achieving significant reductions in expenditure in this area in 2011. [8637/11]

James Reilly (Dublin North, Fine Gael)
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Following discussion with my Department and the HSE, members of the Irish Pharmaceutical Healthcare Association (IPHA) agreed a series of measures to deliver savings on drug expenditure of €200 million in 2011. Savings of €155 million are expected under the GMS and community drug schemes, €35m under the High Tech Scheme and €10m on hospital medicines. As a result, the prices of over 1,000 medicines have been reduced since January this year. I have arranged to meet IPHA next month to explore what further progress can be made in this area. I have also asked my Department to engage with the Association of Pharmaceutical Manufacturers in Ireland, who represent the generics industry, with a view to achieving additional savings in that area.

In addition, my Department is finalising the Heads of the Pricing and Supply of Medicines Bill. This legislation will introduce a system of reference pricing and generic substitution for drugs prescribed under the GMS and community drug schemes. It is important that this legislation is enacted as a number of high volume medicines are expected to come off patent in the coming years. These reforms will promote price competition among suppliers and ensure that lower prices are paid for these medicines resulting in significant savings for taxpayers and patients.