IPHA refutes fake claims on Pricing Agreement
7th February 2017
The Irish Pharmaceutical Healthcare Association (IPHA), which represents the research based pharmaceutical industry in Ireland, has strongly refuted claims by the Healthcare Enterprise Alliance (HEA) that the new pricing Agreement negotiated with the State last summer is not bringing value.
According to Oliver O’Connor, CEO of the IPHA, “The IPHA Agreement is now delivering savings of €12 million per month since it started on 1st August – on target for €140m in its first year. It is travesty for others to suggest we are not delivering value.There is no evidence that any other Association or other pharmaceutical companies are delivering savings to the State of anything like this scale.Nor have they set out any plans to do so.”
“The Agreement we negotiated with the State is delivering a package of measures with the State that will deliver over €785 million in savings to the taxpayer up to 2020. That is the largest ever such package of savings the research-based pharmaceutical has delivered to State”.
“Savings from the entry of biosimilars into Ireland are part of this package and have already started.We estimate that these savings will be over €100m.”
The IPHA CEO dismissed HEA claims that the Agreement was essentially blocking the uptake of biosimilars due to a 30% price cut in originator biologics when a competitor biosimilar comes on the market: “This claim is totally spurious. The 30% price cut on loss of exclusively is providing the State with savings already.These savings are not contingent on the subsequent uptake or market share of biosimilars. IPHA agreed this mechanism specifically so that the State can invest in new medicines”.
O’Connor noted that many of the biosimilars that will launch in the near future are actually manufactured by IPHA companies. He also noted that as investment in the development of a biosimlar is significantly less than an originator biologic, the State should expect a biosimilar manufacture to launch with at least a 30% discount.
“The pricing Agreement IPHA negotiated with the State is working and is delivering very substantial savings to the State. Prices are set at an average of 14 other EU member states and will be kept at this level each year. ” O’Connor concluded.
Notes for Editors
38 members of IPHA are delivering savings in the Agreement through the following mechanisms:
- a reduction of prices on patent-protected medicines to an average of 14 EU member states from 1 August, for annual realignment thereafter;
- a 5.25% rebate on sales to the State of 5.25% on both community and hospital supply;
- a cut in the price of biologic medicines upon entry of biosimilar competition
- other pricing provisions for off-patent medicines with competition in the market.
For further information contact Philip Hannon on 01 6344390 or 087 287 0891.
