Document ID: chunk:federal_register_of_legislation:C2010A00126:clause:1_17
Version: federal_register_of_legislation:C2010A00126
Segment Type: clause
Provision Reference: sch 1 cl 17
Character Range: 7708–9329

17  Subsection 99ACE(5)
Repeal the subsection, substitute:

Adjustment for prior price reductions to component drugs
 (5) If, on a day before the reduction day:
 (a) one or more of the listed component drugs (the component) contained in the related item had been subject to one of the following (the prior price reduction of the component):
 (i) a 12.5% price reduction;
 (ii) a 16% price reduction; and
 (b) because of the prior price reduction of the component, the approved price to pharmacists of the related brand of the related item was reduced;
then the reduction referred to in subsection (3) or (4) is to be adjusted to reflect:
 (c) the percentage (the flowed‑on percentage) of the prior price reduction of the component that was taken into account in working out the amount of the reduction to the approved price to pharmacists of the related brand of the related item; and
 (d) the quantity of the component contained in the drug in the related item.
 (5A) For the purposes of subsection (5), if:
 (a) the prior price reduction of the component was a 12.5% price reduction; and
 (b) the flowed‑on percentage was 100%;
then the reduction referred to in subsection (3) or (4) is to be adjusted so that there is no further reduction in relation to the component.
 (5B) For the purposes of subsection (5), if:
 (a) the prior price reduction of the component was a 12.5% price reduction; and
 (b) the flowed‑on percentage was less than 100%;
then the reduction referred to in subsection (3) or (4) is to be adjusted so that the percentage worked out as follows is taken into account in relation to the component: