Pharmacy Daily | MA MoU revealed

MEDICINES Australia has released the full details of its new agreement with the government (PD Thu) which delivers savings to of $1.86b over the next five years. “For the first time in the history of the PBS we have a written agreement that provides government with fiscal certainty,” said MA ceo Brendan Shaw. He said the pact gives the industry business certainty and “a predictable PBS policy environment.” In the MoU the government promises “not to implement new policy to generate price-related savings from the PBS...that would change the ex-manufacturer price of particular medicines”. There’s also an undertaking not to form any new Therapeutic Groups during the MoU period - but the government will persist with the three groups which were announced last year and are subject to a Senate enquiry, comprising drugs for the treatment of depression, osteoporosis and Paget disease. It continues the separation of the existing F1 and F2 formularies but also agrees to an increase in price reductions to single-brand PBS drugs on listing of a competitor brand from 12.5% to 16%. Drugs on the F2A list will have a 2% price cut applied on 30 Sep this year, in addition to the 2% reduction from 01 Aug, while a 5% price reduction will apply to F2T medications on 30 Sep. From 01 Oct all brands of all drugs in the F2 formulary will be subject to price disclosure. And in a move certain to infuriate generics manufacturers the govt has also undertaken not to introduce any measure which “favours the prescribing or dispensing of generic brands of a drug over originator brands of the same drug”. The MoU also agrees that the indexed $1.53 incentive for dispensing of premium-free brands of drugs will continue.

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