Document ID: chunk:federal_register_of_legislation:C2010A00126:clause:4_99adj:p2
Version: federal_register_of_legislation:C2010A00126
Segment Type: clause
Provision Reference: sch 4 cl 99ADJ (pt 2/4)
Character Range: 38527–41414

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 to which this section applies; and
 (ii) has the same manner of administration as the single brand;
then:
 (e) the single brand is taken to be a brand of a pharmaceutical item to which this section applies; and
 (f) subject to subsection (5), the unadjusted price reduction for the single brand is taken to be the percentage by which the approved ex‑manufacturer price of the single brand would be reduced if the approved price to pharmacists of the brand were to be reduced under section 99ACC to take account of:
 (i) the unadjusted price reduction for the related brand being applied to the component drug; and
 (ii) in a case where the single brand contains one or more other component drugs in relation to which there are one or more other related brands of pharmaceutical items—the unadjusted price reductions for the other related brands being applied to the other component drugs.
 (5) The unadjusted price reduction for the single brand is taken to be 0% if the single brand is a brand of a combination item in relation to which the Pharmaceutical Benefits Advisory Committee has advised the Minister under subsection 101(4AC).

Working out the adjusted approved ex‑manufacturer price
 (6) If subsection (1) applies in relation to a brand of a pharmaceutical item, the adjusted approved ex‑manufacturer price of the brand is worked out as follows:

      Method statement
           Step 1. Divide 23% by the average unadjusted price reduction, worked out under subsection (3), for all the brands of pharmaceutical items to which this section applies. The result is the guaranteed adjustment proportion.
           Step 2. For each of those brands of pharmaceutical items, multiply the guaranteed adjustment proportion by the unadjusted price reduction for the brand of the pharmaceutical item.
           Step 3. For each of those brands, reduce the applicable approved ex‑manufacturer price of the brand by the percentage worked out under step 2.
           Step 4. If the lowest price disclosed, in compliance with price disclosure requirements under section 99ADD, for the pharmaceutical item during the period of 10 months starting on 1 December 2010, is higher than the amount worked out under step 3, work out the difference between:

                (a) the applicable approved ex‑manufacturer price of the brand; and
                (b) 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