Billy Kelleher (Cork North Central, Fianna Fail)
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To ask the Minister for Health when he expects to complete discussions on a final agreement with the Irish Pharmaceutical Healthcare Association on drug costs in addition to the interim agreement; and if he will make a statement on the matter. [37084/12]

Brendan Griffin (Kerry South, Fine Gael)
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To ask the Minister for Health the progress he has made to date in relation to achieving savings on the cost to the health service and private consumers of pharmaceutical products; and if he will make a statement on the matter. [38388/12]

James Reilly (Dublin North, Fine Gael)
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I propose to take Questions Nos. 1544 and 1741 together.

My Department and the HSE have taken a number of actions in recent times to control expenditure on drugs. Savings are being achieved through on-going off-patent price cuts; the pricing mechanism for new products has been changed; and we now have a review mechanism that takes account of price reductions in other countries. Since 2010 these actions have achieved savings in the region of €250 million.

Furthermore, regulations made under the Financial Emergency Measures in the Public Interest Act 2009 have reduced margins and mark-ups in the pharmaceutical supply chain. The combined full-year savings from these measures are €154 million.

In addition, I announced on the 18th June 2012 that an interim agreement had been reached with the Irish Pharmaceutical Healthcare Association (IPHA) to reduce the price of certain off patent medicines. This is expected to deliver savings of €10 million in 2012 (€20 million in a full-year). These price cuts were accepted in advance of further discussions which are expected to deliver more significant savings. Negotiations are ongoing between officials of the Department/HSE and the IPHA since the interim agreement was reached. These discussions are expected to reach a conclusion shortly.

The Health (Pricing and Supply of Medical Goods) Bill 2012 was published on the 13th of July 2012. This legislation will introduce a system of reference pricing and generic substitution for prescribed drugs and medicines. These reforms will promote price competition among suppliers and ensure that lower prices are paid for these medicines resulting in savings for taxpayers and patients.