Document ID: chunk:federal_register_of_legislation:C2025C00090:section:99adh:p2
Version: federal_register_of_legislation:C2025C00090
Segment Type: section
Provision Reference: s 99ADH (pt 2/3)
Character Range: 395797–398555

the approved ex‑manufacturer price of the brand of the pharmaceutical item is reduced because of subsection (3);
then, on the reduction day the claimed price for that pack quantity of the brand of the pharmaceutical item is taken to be reduced by the percentage worked out as follows:

where:
AAEMP means the adjusted approved ex‑manufacturer price of the brand of the pharmaceutical item.
AEMP means the amount that would have been the approved ex‑manufacturer price of the brand of the pharmaceutical item on the reduction day if the reduction under subsection (3) had not occurred.
Note: If the pricing quantity of the brand of the pharmaceutical item on the relevant day is different from the pricing quantity on the reduction day, then, for the purposes of subsection (4), the adjusted approved ex‑manufacturer price of the brand of the pharmaceutical item is worked out under subsection (4A).

Apportioning if pricing quantity changes
 (4A) If the pricing quantity of the brand of the pharmaceutical item on the relevant day is different from the pricing quantity of the brand of the pharmaceutical item on the reduction day, then, for the purposes of subsections (3) and (4), the adjusted approved ex‑manufacturer price of the brand of the pharmaceutical item is taken to be the amount worked out as follows:

where:
PQ1 means the pricing quantity of the brand of the pharmaceutical item on the relevant day.
PQ2 means the pricing quantity of the brand of the pharmaceutical item on the reduction day.
WADP means the amount equal to the amount of the weighted average disclosed price of the brand of the pharmaceutical item.

Section not to limit Minister's powers
 (5) This section does not limit the Minister's powers, on or after the reduction day, to make:
 (a) other price agreements; or
 (b) further determinations under section 85B;
for the brand of the pharmaceutical item.

12.5% average unadjusted price reduction test
 (6) For the purposes of this section, a brand of a pharmaceutical item passes the 12.5% average unadjusted price reduction test if there have been 3 consecutive data collection periods in respect of which a weighted average disclosed price has been determined for any brand of the pharmaceutical item, where:
 (a) the percentage obtained by dividing the total of the unadjusted price reductions for a brand of the pharmaceutical item in respect of each of those data collection periods by 3 is at least 12.5%; and
 (b) this section did not apply to the brand of the pharmaceutical item in relation to any of those data collection periods; and
 (c) those data collection periods include the data collection period mentioned in paragraph (1)(a).
Example: The 12.5% average unadjusted price reduction test was passed using