A new deal reached between the Health Service Executive (HSE) and pharmaceutical manufacturers could save the State up to €20 million over the next four years on the cost of generic or off-patent drugs.
The agreement, announced yesterday between the HSE and the Association of Pharmaceutical Manufacturers of Ireland, will lead to a reduction of around 35 per cent in prices over the next four years.
The price of generic drugs in the Republic will be linked to those in a "basket" of other European countries. For the first time this will include countries such as Spain, Austria and Belgium where prices for such products have consistently been among the lowest in Europe.
This is the second agreement concluded by the HSE with the pharmaceutical industry in recent months. Last July it reached a deal with the Irish Pharmaceutical Healthcare Association, governing the supply and price of brand-name drugs under patent. This deal may lead to savings of around €300 million.
HSE chief executive Prof Brendan Drumm said yesterday that the new agreement was "a great result for patients as it represents excellent value for money".
The HSE currently spends around €1.8 billion per year on drugs and medicines. It said the new agreement would apply to all generic medicines available in its schemes, including medical card and drug reimbursement schemes.
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