THE PHARMACEUTICAL industry has accused the Department of Health of reneging on agreements over new therapies for patients after the companies had already delivered savings of €240 million.

The industry says it sees no point in entering negotiations with the Department of Health on a new drug pricing regime in the circumstances. The Irish Pharmaceutical Healthcare Association (IPHA), which represents mostly large international pharmaceutical companies, says its members delivered these “exceptional savings” in 2010 and 2011 in recognition of the dire financial position of the Government.

But they insist that the savings – on top of €300 million delivered in the most recent drug pricing agreement – were agreed on the express understanding that the agreement would continue as normal until March 1st this year.

The agreement allows that drugs which have been approved by the regulator and have passed health technology assessments will be added to the drug reimbursement list.

“It is not working at all,” says David Gallagher, president of the IPHA and country manager of Pfizer. “Hardly anything has gone in [to the reimbursement list] in the past six months. Until that is resolved, it is difficult to sit down and discuss a new accord.”

It is understood that the Department of Health has sought further savings of €112 million in the new drug pricing arrangements.

Addressing a briefing on the need for sustainable policies to protect and develop the pharmaceutical sector in Ireland, Mr Gallagher said existing price cuts “have already put pressure on jobs across the industry; any further reductions will raise serious question marks over the attractiveness of Ireland as a future investment location”.

HSE chief executive Cathal Magee told an Oireachtas committee on Thursday that spending on drugs had been increasing at a rate of 9 per cent per year when the figure in the UK was 2-3 per cent.

The Department of Health said negotiations with the pharmaceuticals over new drug pricing arrangements were ongoing.