Document ID: chunk:federal_register_of_legislation:C2007A00111:clause:1_99acd:p2
Version: federal_register_of_legislation:C2007A00111
Segment Type: clause
Provision Reference: sch 1 cl 99ACD (pt 2/3)
Character Range: 44319–46875

brand of another combination item that:
 (i) has a drug that contains the same component drugs as the new brand of the trigger combination item; and
 (ii) has the same manner of administration as the new brand of the trigger combination item; or
 (c) if the drug in the trigger combination item is in a therapeutic group—a combination item that:
 (i) has another drug that is in that group; and
 (ii) has the same manner of administration as the new brand of the trigger combination item.

Note: For the purposes of this subsection, subsection (1) is taken not to have applied in relation to a brand of a pharmaceutical item in some cases: see section 99AEI.

12.5% price reduction

 (4) The Minister:
 (a) may, under a price agreement, agree an agreed price for the new brand of the trigger combination item that comes into force on the determination day; and
 (b) must not make a determination under section 85B for the new brand of the trigger combination item.

 (5) Subject to subsections (6) and (7), the agreed price of the new brand of the trigger combination item must not exceed the approved price to pharmacists, on the day before the determination day, of the existing brand of the existing item, reduced by 12.5%.

 (6) If, on a day before the determination day:
 (a) one or more of the listed component drugs contained in the drug in the existing item had been subject to a 12.5% price reduction; and
 (b) because of that price reduction, the approved price to pharmacists of the existing brand of the existing item was reduced;
then the reduction referred to in subsection (5) is to be adjusted to reflect:
 (c) the extent to which the 12.5% price reduction was taken into account in working out the amount of the reduction to the approved price to pharmacists; and
 (d) the quantity of the listed component drug contained in the drug in the existing item.

Apportioning if quantities different

 (7) If:
 (a) the approved price to pharmacists, on the day before the determination day, of the existing brand of the existing item is for a particular quantity or number of units of that item; and
 (b) the agreed price for the new brand of the trigger combination item is not for the same quantity or number of units;
then, for the purposes of subsection (4), the approved price to pharmacists of the existing brand of the existing item is taken to be adjusted proportionally to what it would have been if the quantity or number of units of the existing brand of the existing item had been the same as the quantity or number of units of the