Irish pharma sees failures in ESRI report on use of pharmaceuticals

A new report by Ireland’s Economic and Social Research Institute (ESRI) has recommended new ways to agree prices for patent-protected and generic drugs, which it says will create value for money for drugs while guaranteeing security of supply.

The study, titled Delivery of Pharmaceuticals in Ireland - Getting a Bigger Bang for the Buck, also recommends that all pharmacies be required to show the mark-up on their drugs, as well as their dispensing fees. Currently the Health Service Executive (HSE) agrees prices for drugs with manufacturers based on their average price in nine other European Union states. In 2010, the total health bill for pharmaceuticals was 1.9 billion euros ($2.45 billion).

The Irish Pharmaceutical Healthcare Association (IPHA) last week responded to the HSE commissioned report by the ESRI, saying that it needs to be viewed in the context of the very considerable concessions made by the researched-based pharmaceutical industry in terms of prices. The current IPHA/HSE Agreement provides for a 35% reduction in the original price of a product.