LONDON, July 20 (APM) - A first-ever agreement for an annual cut in drug prices over four years will enable early access to new medicines in Ireland, it was claimed on Wednesday.
The Irish Pharmaceutical Healthcare Association (IPHA) said in a statement that it has agreed a new four-year deal with the government for an "economic and secure supply of medicines for patients".
The agreement will see total savings of 785 million euros from IPHA member companies, an average of nearly 200 million euros a year, it added.
Dr Leisha Daly, President of IPHA, who led the IPHA delegation during negotiations, said: "It is essential that patients have early access to life-saving and life-enhancing new medicines. This agreement is the best way to make that happen.
"It offers a clear process and sustainable pricing so that new medicines can be made available quickly to patients in Ireland. With this agreement in place, patients and their doctors can rightly expect that priority will be given to funding innovative, new medicines in the health services."
For the first time prices will be reduced annually, starting on August 1 and then on July 1 each year thereafter.
Prices will be set to be an average of 14 European countries. The price reductions will generate direct savings to the state in hospital and pharmacy supply. Consumers who pay the full cost of medicines can also expect to benefit from price reductions, the IPHA added.
Daly said: "This is the largest single package of savings the pharmaceutical industry has ever delivered to the state. The government negotiating team set a demanding challenge to us.
"We have made an agreement so that new medicines can be funded for patients in Ireland. We worked hard on all aspects of pricing to respond with a commercially viable, substantial package. The four-year period to 2020 offers stability in the supply of medicines to patients and their treating clinicians who are using medicines supplied by our member companies."
He said that formal supply agreements on the pricing and reimbursement of medicines between the state and industry have been proved over many years to be in the interests of patients and taxpayers.
There are 38 international pharma companies in the Irish Pharmaceutical Healthcare Association, which have signed up to this agreement.
The ingredient cost of medicines to the state in 2015 was 1.7 billion euros and total costs including wholesaling and dispensing were 2.4 billion euros, it said.
IPHA member companies' sales to the state of 1.2 billion euros accounted for 71% of ingredient cost and 50% of total state medicines supply and dispensing cost, it said.
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