For many years, a structured and transparent process has overseen the supply of innovative medicines in Ireland. This has served the State and patients well.
These savings have provided the State with monies to fund new therapies which offer hope to patients of longer, healthier and more active lives.
On 20th July, 2016, IPHA and the Government concluded a new four-year Framework Agreement on the Supply of Medicines to the public Health Services.
In a collaborative approach between industry and the State, the Agreement provides a reliable framework in which public expenditure on medicines is sustainable and new, innovative medicines can be made available for patients in Ireland in a timely way.
Under the Agreement, the pricing of medicines in Ireland is set to an average of 14 EU Member States each year. The State will also benefit from rebates on sales of 5.25%, moving to 5.5%. There will be significant price cuts on entry into the market of competitor products to off-patent medicines.
In addition, the Agreement includes a detailed pathway for the approval by the HSE of new medicines in Schedule 1.
The four year duration of the agreement until 2020 offers stability to patients and their treating clinicians in relation to the supply and availability of existing and new medicines. Its estimated that the Agreement will deliver savings in the region of €785 million to the State.