Document ID: chunk:federal_register_of_legislation:C2012A00087:clause:1_71:p1
Version: federal_register_of_legislation:C2012A00087
Segment Type: clause
Provision Reference: sch 1 cl 71 (pt 1/3)
Character Range: 30009–32736

71  Working out the default approved ex‑manufacturer price
(1) For the purposes of item 70, the default approved ex‑manufacturer price of the relevant brand of the pharmaceutical item is worked out as follows.

Step 1—Identify the APP and agreed quantity
(2) Identify the approved price to pharmacists (the relevant APP) of the relevant brand of the pharmaceutical item on the day before the commencement day, and the quantity (the agreed quantity) by reference to which the relevant APP was agreed or determined.

Step 2—Work out the ex‑manufacturer price for the agreed quantity
(3) List any maximum quantity or determined quantity on the commencement day of each listed brand of the pharmaceutical item on that day (other than any maximum quantity that relates to a supply of any of those brands in section 100 only circumstances).
(4) From that list, identify the relevant quantity of the relevant brand of the pharmaceutical item, which is:
 (a) the quantity that is the highest whole number multiple of the agreed quantity of the relevant brand of the pharmaceutical item from:
 (i) any maximum quantity on the list; or
 (ii) if subparagraph (a)(i) does not apply—any determined quantity on the list; or
 (b) if paragraph (a) does not apply—the quantity that is the closest to the agreed quantity of the relevant brand of the pharmaceutical item (or, if 2 quantities are equally close, the higher of those quantities) from:
 (i) any maximum quantity on the list; or
 (ii) if subparagraph (b)(i) does not apply—any determined quantity on the list.
(5) Work out the price to pharmacists for the relevant quantity of the relevant brand of the pharmaceutical item as follows:
where:
APP means the relevant APP of the relevant brand of the pharmaceutical item.
AQ means the agreed quantity of the relevant brand of the pharmaceutical item.
PTP means the price to pharmacists for the relevant quantity of the relevant brand of the pharmaceutical item.
RQ means the relevant quantity of the relevant brand of the pharmaceutical item.
(6) If the price to pharmacists for the relevant quantity of the relevant brand of the pharmaceutical item is less than, or equal to, $1,000, then the ex‑manufacturer price for the agreed quantity of the relevant brand of the pharmaceutical item is the amount worked out as follows:
where:
APP means the relevant APP of the relevant brand of the pharmaceutical item.
EMP means the ex‑manufacturer price for the agreed quantity of the relevant brand of the pharmaceutical item.
(7) If:
 (a) the price to pharmacists for the relevant quantity of the relevant brand of the pharmaceutical item is more than $1,000; and
 (b) the relevant quantity and the agreed quantity of the relevant brand of the