Ireland’s IPHA hits back at high drug prices claim

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Ireland’s IPHA hits back at high drug prices claim

Home/Pharma News | Posted 13/12/2013 0 Post your comment

The Irish Pharmaceutical Healthcare Association (IPHA) has hit back at statements from the European Commission’s (EC’s) troika that drug prices in the country are unjustifiably high.

The EC’s troika mission to Ireland recently told the Irish Government that the cost of drugs in the country could not be justified. Drug prices in the country have been found to be at least three times more expensive than in the UK [1].

IPHA, which represents the research-based pharmaceutical industry in Ireland, claims that pharmaceutical companies that make and supply brand-name drugs in Ireland have delivered savings of almost Euros 70 million in the first half of 2013.

IPHA Commercial Affairs Director, Ms Orlaith Brennan put the blame on generics, stating that ‘generic medicines are up to 50% more expensive in Ireland than the European average’. Ms Brennan defended brand-name drugs saying that they ‘are now at or below the European average as a direct result of a series of major price reductions agreed between the industry and the Government’. She added that ‘proper recognition needs to be given to these savings’ and argued that ‘the new system of reference pricing and generics substitution should bring down the price of generics’.

Ms Brennan pointed out that the current agreement has delivered over Euros 68.5 million in savings to Ireland in the first six months of 2013 and has in place mechanisms to deliver Euros 400 million over the course of the agreement. She added that ‘as a result of a series of price reductions agreed by IPHA companies between 2008 and 2013, the pharmaceutical per item cost to the State has reduced by nearly 30%, resulting in savings in the region of Euros 554 million.’

Ms Brennan concluded that Ireland has benefited from ‘very significant savings’ as a result of the part brand-name companies have played in implementing reform in Ireland.

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Reference

1. GaBI Online - Generics and Biosimilars Initiative. Ireland told high drug prices cannot be justified [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2013 Dec 13]. Available from: www.gabionline.net/Pharma-News/Ireland-high-drug-prices-cannot-be-justified

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Source: IPHA