Document ID: chunk:federal_register_of_legislation:C2007A00111:clause:1_99adh:p1
Version: federal_register_of_legislation:C2007A00111
Segment Type: clause
Provision Reference: sch 1 cl 99ADH (pt 1/2)
Character Range: 74122–76746

99ADH  Price reduction based on information provided under the price disclosure requirements

When this section applies

 (1) This section applies if:
 (a) under section 99ADB, the Minister determines the weighted average disclosed price of a brand of a pharmaceutical item; and
 (b) a price agreement or price determination is in force in relation to the brand of the pharmaceutical item; and
 (c) the weighted average disclosed price of the brand of the pharmaceutical item is at least 10% less than the approved ex‑manufacturer price of the brand of the pharmaceutical item; and
 (d) the Minister gives the responsible person for the brand of the pharmaceutical item a notice stating:
 (i) the adjusted approved ex‑manufacturer price of the brand of the pharmaceutical item; and
 (ii) the adjusted approved price to pharmacists of the brand of the pharmaceutical item; and
 (iii) the day (the reduction day) the adjusted approved price to pharmacists of the brand of the pharmaceutical item comes into force for the purposes of the price agreement or price determination.

 (2) For the purposes of subparagraph (1)(d)(iii), the reduction day must be:
 (a) a prescribed day; and
 (b) a day that is not before the latest of the following days:
 (i) the day that is 6 months after the day the notice is given;
 (ii) if the day is before 1 January 2011 and the drug in the pharmaceutical item is in Part A of F2—1 August 2009;
 (iii) if the day is on or after 1 January 2011 and the drug in the pharmaceutical item was not in Part T of F2 on 31 December 2010—1 January 2011;
 (iv) if the day is on or after 1 January 2011 and the drug in the pharmaceutical item was in Part T of F2 on 31 December 2010—1 August 2012.

Price reduction

 (3) If, on the reduction day, the approved price to pharmacists of the brand of the pharmaceutical item would, apart from this section, be higher than the adjusted approved price to pharmacists of the brand of the pharmaceutical item, then, on the reduction day, the amount of the approved price to pharmacists is taken to be reduced to the amount of the adjusted approved price to pharmacists for the purposes of the price agreement or price determination.

Claimed price reduction

 (4) If, on the reduction day:
 (a) a determination under subsection 85B(3) is in force in relation to the brand of the pharmaceutical item; and
 (b) the approved price to pharmacists of the brand of the pharmaceutical item is reduced because of subsection (3);
then, for the purposes of that determination, on the reduction day the claimed price for the brand of the pharmaceutical item is taken to be