Government Poised to Approve Landmark Four-Year Medicines Deal

A new four-year medicines deal between the State and pharmaceutical companies is expected be approved by the Government. It follows months of talks between the Irish Pharmaceutical Healthcare Association (IPHA), which represents research-based companies that make branded medicines, the State and companies that make generic medicines. It is understood the agreement between the IPHA and State will speed up access to new medicines for public patients, requiring the HSE, in time, to make a decision on these medicines being available on the public system within about 180 days, through faster assessments on cost-effectiveness. The State will also secure savings on the price of some existing medicines, and have more use of generics, through a separate agreement reached with the makers of generic drugs. The IPHA has previously said it expects its member companies to apply to the HSE to make around 32 new medicines available this year. It has said that around 6,000 patients could benefit from this. These new medicines cover breast, lung and gynaecological cancer treatments, leukaemia, type 2 diabetes, weight management and heart disease. Budget 2026 provided for €30m for new life-enhancing medicines. The medicines bill for the State this year will be around €4 billion. Many new medicines can cost over €100,000 per patient, per treatment. The State has been pressing for cost-effective treatments, that show value for money, given the finite health budget and many competing health pressures. Under Budget 2026, the pharmaceutical industry was also given an increased tax credit for research and development, which rose from 30% to 35%.