99ACRFlow‑on of first new brand price reductions to related brands

#### 99ACR Flow‑on of first new brand price reductions to related brands (1) This section applies to a brand (the related brand) of a pharmaceutical item (a related item) mentioned in subsection (2) if: (a) subsection 99ACB(5) or (5A) or 99ACD(5) or (5A) has applied to the agreed price for a brand (the new brand) of a pharmaceutical item (the new item); and (b) that price comes into force on a day (the reduction day); and (c) on the day before the reduction day, the related brand of the related item was a listed brand of the related item; and (d) the related item is not an exempt item. > Note: See also section 99ACG. (2) For the purposes of this section, a related brand of a related item is any of the following: (a) a listed brand of another pharmaceutical item that has the same drug and manner of administration as the new item; (b) if the drug in the new item is in a therapeutic group—a listed brand of a pharmaceutical item that: (i) has another drug that is in that group; and (ii) has the same manner of administration as the new brand of the new item. (3) Subject to subsections (4) and (6), on the reduction day, the approved ex‑manufacturer price, and (if applicable) the claimed price, of the related brand of the related item is taken to be reduced by a percentage equal to the percentage by which the agreed price for the new brand was reduced as a result of the application of the subsection mentioned in paragraph (1)(a). (4) Subsection (3) does not apply to the related brand of the related item if: (a) on the reduction day, the approved ex‑manufacturer price of the related brand of the related item does not exceed the approved ex‑manufacturer price of the related brand of the related item in force on the day before the reduction day, reduced by more than the percentage required under subsection (3); and (b) if there is an applicable claimed price of the related brand of the related item—on the reduction day, the claimed price of the related brand of the related item does not exceed the claimed price of the related brand of the related item in force on the day before the reduction day, reduced by more than the percentage required under subsection (3). Apportioning if pricing quantity changes (5) If the pricing quantity of the related brand of the related item on the day before the reduction day is different from the pricing quantity of the related brand of the related item on the reduction day, then, for the purposes of subsection (3) and paragraph (4)(a), the approved ex‑manufacturer price of the related brand of the related item on the day before the reduction day is taken to be the amount worked out using the following formula:  where: > AEMP1 means the amount that was the approved ex‑manufacturer price of the related brand of the related item on the day before the reduction day. > PQ1 means the pricing quantity of the related brand of the related item on the day before the reduction day. > PQ2 means the pricing quantity of the related brand of the related item on the reduction day. Ministerial discretion not to apply, or to reduce, flow‑on price reduction (6) In relation to the related brand of the related item, the Minister may, by notifiable instrument, determine that: (a) the approved ex‑manufacturer price, and (if applicable) the claimed price, is not to be reduced under subsection (3) in relation to a particular reduction day; or (b) the approved ex‑manufacturer price, and (if applicable) the claimed price, is to be reduced by a lower percentage than would otherwise apply under subsection (3) in relation to a particular reduction day. (7) If the Minister makes a determination under paragraph (6)(a), subsection (3) is taken not to have applied to the related brand of the related item. (8) In making a determination under subsection (6): (a) the Minister must take into account what the approved ex‑manufacturer price, and (if applicable) the claimed price, of the related brand of the related item would otherwise be under this section in relation to the particular reduction day if a determination were not made; and (b) the Minister may take into account any other matter the Minister thinks is relevant. Section does not limit Minister’s powers (9) This section does not limit the Minister’s powers, on or after the reduction day, to make: (a) further price agreements; or (b) determinations under section 85B; for the related brand of the related item.