Document ID: chunk:federal_register_of_legislation:F2024C00988:reg:73a:p2
Version: federal_register_of_legislation:F2024C00988
Segment Type: reg
Provision Reference: reg 73A (pt 2/2)
Character Range: 133460–135239

adjustment percentage (expressed as a percentage to 2 decimal places) by dividing the amount worked out under paragraph (c) by the sum of the net revenue (worked out under step 1) of all listed brands of pharmaceutical items to which both of the following apply for the data collection period:
 (i) the responsible person for the brand of the pharmaceutical item is the same as the responsible person for the relevant brand;
 (ii) the average approved ex‑manufacturer price of the brand of pharmaceutical item is more than $4; and
 (e) reducing the net revenue for the relevant brand for the data collection period by the net revenue adjustment percentage.
Note: The effect of this subsection is that any difference between net revenue and the revenue that would have been obtained by a responsible person had they supplied brands of pharmaceutical items with approved ex‑manufacturer prices of $4 or less at the average approved ex‑manufacturer prices for those brands will be apportioned to the net revenue for the responsible person's brands of pharmaceutical items that have approved ex‑manufacturer prices of more than $4.
Example: The responsible person for brand A is also the responsible person for two listed brands of pharmaceutical items that have approved ex‑manufacturer prices of more than $4. The net revenue for one of those brands (brand B) is $2,000 and for the other (brand C) is $3,000. The net revenue adjustment percentage is obtained by dividing $500 (the difference between the adjusted net revenue and the net revenue of brand A) by $5,000 (the sum of the net revenue of brand B and brand C) which equals 10%. The adjusted net revenue of brand B is $1,800 ($2,000 reduced by 10%) and the adjusted net revenue of brand C is $2,700 ($3,000 reduced by 10%).