On July 20, 2016, iPHA and the government signed a new four-year framework agreement on the provision of medicines to public health services. The current framework agreement on the supply and pricing of medicines came into force in 2016 and expires at the end of July. « 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. 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. A new four-year agreement with the Irish Pharmaceutical Healthcare Association (IPHA) will reduce the price paid by HSE for medicines from 1 August. The improvement in the pricing mechanism will keep the price of medicines in Ireland down and will save savings over four years, as well as additional savings from non-IPHA companies and a new evaluation procedure to support HSE`s investments in new and innovative medicines for Irish patients. Simon Harris TD today welcomed a four-year framework agreement on the supply and pricing of medicines with the Irish Pharmaceutical Healthcare Association (IPHA). Regarding the new agreement, the Minister said: « I am pleased that this agreement offers greater value to the state and will provide patients with better access to new and existing medicines. It will also further align the cost of medicines in Ireland with other European countries. « This new agreement with IPHA and its application to non-IPHA companies will allow HSE to pay less for medicines from 1 August and generate an estimated 600 million euros in savings and additional savings for non-IPHA companies over the next four years. » « The Government wants to ensure that Irish patients can continue to have access to new and innovative medicines and that Ireland remains at the forefront of its European peers in terms of early access to medicines in an affordable manner and within available resources. As a result of this agreement with IPHA, HSE will be much stronger to meet the growing demand for existing medicines and invest in new drugs over the next four years. « The price provisions of this agreement represent a significant improvement over the provisions of the previous agreement.
They will see an extension of the benchmark basket, which sets prices in Ireland from nine to fourteen countries, including Greece, Italy and Portugal for the first time.