The four-year duration of the agreement until 2020 provides patients and their treating physicians with stability in the care and availability of existing and new medicines. The current framework agreement on the supply and pricing of medicines came into force in 2016 and expires at the end of July. IPHA said on Wednesday: “We are continuing constructive cooperation with health authorities towards a short-term extension of the existing agreement. For an extension to be viable, we need to restart reimbursement for new drugs this year. In the absence of an extension of the current agreement on the pharmaceutical industry, rebates of around 5 million euros per month to the HSE could be jeopardized. The Ministry of Health said on Wednesday that “the existing framework agreement on the supply and pricing of medicines with the Irish Pharmaceutical Healthcare Association expires on 31 July this year. The agreement provides that all obligations arising from the agreement expire after that date, unless the parties continue by mutual agreement. “We look forward to a new constructive engagement with health authorities in the coming weeks for an extension and a new agreement. We have proposed the adoption of a new agreement in the form of a co-financing model between industry and government to cover the costs of new drugs.

The IPHA said on Thursday that discussions on a possible extension of the current agreement had “progressed well.” However, he stated that “for an extension to be viable, it is essential that we see the exercise in the reimbursement of new drugs that have satisfied the clinical effectiveness of HSE and value-to-money testing.” Under the agreement, drug pricing in Ireland is set at an average of 14 EU Member States per year. The government will also benefit from sales discounts of 5.25%, which will rise to 5.5%. The entry into the market of competing products for non-patented drugs will result in significant price reductions. “It was not possible to properly prepare for a succession agreement, as both the Ministry of Health and the HSE focused efforts and resources on the Covid crisis. Under these conditions, the Department/HSE is in agreement with the Irish Pharmaceutical Healthcare Association to renew the existing agreement. The agreement was due to expire today, but a last-minute agreement was reached between the HSE, the Ministry of Health and drug suppliers. The agreement between the government and the Irish Pharmaceutical Healthcare Association has resulted in savings of around 600 million euros. The pharmaceutical industry said it was confident that an extension of the current drug cost agreement with the government could be approved this week. The Ministry of Health informed the HSE Board of Directors that there was no additional money available and that the associated costs had to be covered by savings. . However, the pharmaceutical industry is not satisfied with the block put in place last year by the Ministry of Public Expenditure for new drugs and drugs available, which is reimbursed by the HSE if they have resulted in additional costs. .

The HSE authorizes the HSE to reimburse new drugs that are budget-neutral or save money.