Document ID: chunk:federal_register_of_legislation:C2010A00126:clause:4_99adj:p1
Version: federal_register_of_legislation:C2010A00126
Segment Type: clause
Provision Reference: sch 4 cl 99ADJ (pt 1/4)
Character Range: 35975–38743

99ADJ  Minimum average 23% price reduction for some brands of pharmaceutical items
 (1) If:
 (a) this section applies to a brand of a pharmaceutical item; and
 (b) the average unadjusted price reduction, worked out under subsection (3), for all the brands of pharmaceutical items to which this section applies is less than 23%;
the adjusted approved ex‑manufacturer price of the brand of the pharmaceutical item, on 1 April 2012, is the amount worked out under subsection (6).

Brands of pharmaceutical items to which this section applies
 (2) This section applies to a brand of a pharmaceutical item (the relevant brand) if:
 (a) the drug in the pharmaceutical item is on F2 on 1 December 2010; and
 (b) no requirement to comply with price disclosure requirements has arisen under former subsection 99ADD(1) before 1 December 2010 in relation to:
 (i) the relevant brand; or
 (ii) any other brand of any pharmaceutical item having that drug and having the same manner of administration as the relevant brand.

The average unadjusted price reduction
 (3) The average unadjusted price reduction for all the brands of pharmaceutical items to which this section applies is the percentage worked out as follows:

      Method statement
           Step 1. For each brand of a pharmaceutical item to which this section applies, multiply:

                (a) the applicable approved ex‑manufacturer price of the brand; by
                (b) the total number of the supplies of the agreed quantity for the brand that were supplies in respect of which the Commonwealth provided benefits under section 85, during the period of 10 months starting on 1 December 2010.

           Step 2. For each amount worked out under step 1, work out the amount of that step 1 amount that represents a percentage equal to the unadjusted price reduction for the brand.
           Step 3. Divide:

                (a) the sum of all the amounts worked out under step 2 for all of the brands of pharmaceutical items to which this section applies; by
                (b) the sum of all the amounts worked out under step 1 for all of those brands.

           Step 4. The amount worked out under step 3, multiplied by 100 and expressed as a percentage, is the average unadjusted price reduction for all the brands of pharmaceutical items to which this section applies.
 (4) For the purposes only of subsection (3), if:
 (a) a combination item has a drug to which subsection 85AB(5) applies; and
 (b) there is only one listed brand (the single brand) of the combination item; and
 (c) a pharmaceutical item has a drug that is a listed drug (the component drug) that the drug referred to in paragraph (a) contains; and
 (d) a brand of the pharmaceutical item (a related brand):
 (i) is a brand