Roche says drug pricing agreement is hurting profits at its Irish unit

Ref: The Irish Times
  • Roche is warning that a revised drug pricing agreement between the government of Ireland and the Irish Pharmaceutical Healthcare Association will "have a serious negative impact on profit margins" at its local subsidiary, reported The Irish Times.

  • The Framework Agreement on the Supply and Pricing of Medicines, which was introduced in 2016, promised the government more than 750 million euros in savings over the four years of the deal.

  • In the company accounts, which cover the 12 months to the end of 2016, Roche's Irish subsidiary said the deal would hurt products in both that year and into 2017, when the full impact of the agreement would be felt.

  • Roche noted that it and other drug firms were "continuing to experience significant delays in the reimbursement of products," adding that this had caused the launch of new products to be delayed with a knock-on effect for both the company and patients.

  • "Despite this, the directors remain confident that the company has a positive future given the strength of the product pipeline with new medicines due in areas such as lung cancer, multiple sclerosis and haemophilia," the company said.

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