Sir, – You assert there is "scant evidence of a significant reduction in the State's pharmaceutical bill that the bailout programme prescribed" (Editorial, October 31st). I can understand how this perception prevails, but it misrepresents the efforts made by the research-based pharmaceutical industry (represented by the IPHA) to play its part in reducing the healthcare bill. Furthermore, it should be noted that medicines account for only 12.5 per cent of the total healthcare bill.
From 2008 to 2013 the number of medical cards issued to patients rose by a staggering 520,000, and these additional card-holders would have been prescribed about 15 million items of medicine over the period. Following a series of price reductions by the research-based pharmaceutical industry, the cost to the State per item was reduced by more than 20 per cent, generating savings for the Exchequer in the GMS scheme alone of circa €266 million. The total savings to the Exchequer across all community-based schemes over the same period was in the region of €554 million.
Currently, the prices of original brand medicines (both on- and off-patent) supplied by members of the IPHA are now at or below the European average. Significant further savings are on the way in the off-patent sector via the new system of reference pricing and generic substitution that is being rolled out.
Put simply, the significant savings made in the State’s pharmaceutical bill have been masked by the huge growth in the numbers of medicines dispensed to patients. However, it should be acknowledged that through the provision of deep cuts in the price of medicines, the pharmaceutical industry in Ireland has played its part in assisting the Government in its efforts to bring us through these very difficult times. – Yours, etc,
ANNE NOLAN,
Chief Executive,
Irish Pharmaceutical
Healthcare Association Ltd,
Pembroke Road,
Dublin 4.