Billy Kelleher (Cork North Central, Fianna Fail)
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226. To ask the Minister for Health if recent newspaper reports that he is to use the Health (Pricing and Supply of Medical Goods) Act 2013 to reduce the price of patented drugs are accurate; if so, the section of the legislation he will be using to achieve the reductions; and if he will make a statement on the matter. [5300/15]

Leo Varadkar (Dublin West, Fine Gael)
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In 2012 my Department and the HSE entered into an Agreement with the Irish Pharmaceutical Healthcare Association to deliver savings of over €400m. Over half of the savings to be delivered - €210m - were to be reinvested by the State into the provision of new and innovative drugs.

The State's investment in new drugs over the three-year lifetime of the Agreement is likely to exceed the €210m earmarked. Therefore in order to ensure that funding is available to enable patients to have access to new and innovative drugs, additional savings in expenditure on drugs and medicines must be achieved.

My Department and the HSE have been engaging with the Irish Pharmaceutical Healthcare Association on this issue as part of the Mid-Term Review of the 2012 Agreement.

Whilst the Government's preference would be for these additional savings to be delivered in co-operation with the pharmaceutical industry, agreement has not been reached in discussions to date.

Section 21 of the Health (Pricing and Supply of Medical Goods) Act 2013 affords the HSE powers to review and alter prices. This is an option which the Executive is examining at present, having regard to all relevant factors, including the funding pressures that it faces in relation to new and innovative drugs.