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: Start formula start fraction AEMP1 over PQ1 end fraction times PQ2 end 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.