Document ID: chunk:federal_register_of_legislation:C2010A00126:clause:4_99adj:p3
Version: federal_register_of_legislation:C2010A00126
Segment Type: clause
Provision Reference: sch 4 cl 99ADJ (pt 3/4)
Character Range: 41101–43907

that lowest price;

            expressed as a percentage of that applicable approved ex‑manufacturer price.
           Step 5. The GAP‑adjusted reduction for the brand is:

                (a) unless step 4 applies—the percentage worked out under step 2; or
                (b) if step 4 applies—the percentage worked out under step 4.

           Step 6. Work out, under subsection (3), the average unadjusted price reduction for all the brands of pharmaceutical items to which this section applies, as if the unadjusted price reduction for each brand were the GAP‑adjusted reduction for the brand.
           Step 7. If the average unadjusted price reduction worked out under step 6 is at least 23%, reduce the applicable approved ex‑manufacturer price of the brand by a percentage of that price equal to the GAP‑adjusted reduction for the brand. The result is the GAP‑adjusted approved ex‑manufacturer price of the brand.
           Step 8. If step 7 applies, the adjusted approved ex‑manufacturer price of a brand to which this section applies is the GAP‑adjusted approved ex‑manufacturer price of the brand.
           Step 9. If the average unadjusted price reduction worked out under step 6 is less than 23%, repeat steps 1 to 6, as many times as necessary until step 7 is satisfied, as if:

                (a) the reference in step 1 to the average unadjusted price reduction were a reference to the average unadjusted price reduction last worked out under step 6; and
                (b) the reference in step 2 to the unadjusted price reduction for a brand of a pharmaceutical item were a reference to the GAP‑adjusted reduction for the brand last worked out under step 5.
 (7) However, if, in applying or repeating steps 1 to 6 of the method statement in subsection (6), step 4 of the method statement applies in relation to all the brands of pharmaceutical items to which this section applies:
 (a) steps 6 to 9 of the method statement cease to apply; and
 (b) the adjusted approved ex‑manufacturer price of a brand to which this section applies is worked out by reducing the applicable approved ex‑manufacturer price of the brand by a percentage of that price equal to the GAP‑adjusted reduction for the brand last worked out under step 5 of the method statement.

Effect of the unadjusted price reduction for a brand being less than 10%
 (8) If, but for this subsection, the unadjusted price reduction for a brand of a pharmaceutical item would be less than 10%, the unadjusted price reduction for the brand is taken to be 0% for the purposes of:
 (a) working out under subsection (3) the average unadjusted price reduction for all the brands of pharmaceutical items to which this section applies; and
 (b) working out under subsection (6) the adjusted approved ex‑manufacturer price of