Document ID: chunk:federal_register_of_legislation:F2024C00988:reg:73a:p1
Version: federal_register_of_legislation:F2024C00988
Segment Type: reg
Provision Reference: reg 73A (pt 1/2)
Character Range: 131047–133693

73A  Step 3A—adjusted net revenue for brand
 (1) Work out the adjusted net revenue of the listed brand of the pharmaceutical item for the data collection period.

Where average approved ex‑manufacturer price is $4 or less
 (2) If the average approved ex‑manufacturer price (see step 3) of the listed brand of the pharmaceutical item for the data collection period for the brand is $4 or less, the adjusted net revenue is the amount worked out by multiplying:
 (a) the adjusted volume of the listed brand of the pharmaceutical item sold for the data collection period (see step 2); by
 (b) the average approved ex‑manufacturer price of the listed brand of the pharmaceutical item for the data collection period (see step 3).
Example: A responsible person has one listed brand (brand A) of a pharmaceutical item that has an average approved ex‑manufacturer price of $3.50 and the net revenue obtained for a sale of 1,000 packs of that brand was $3,000. The adjusted net revenue of brand A is $3,500.

Where average approved ex‑manufacturer price is more than $4
 (3) If the average approved ex‑manufacturer price (see step 3) of the listed brand (the relevant brand) of the pharmaceutical item for the data collection period is more than $4, the adjusted net revenue is the amount worked out by:
 (a) working out the sum of the net revenue worked out under step 1 for 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 the pharmaceutical item is $4 or less; and
 (b) working out what would have been the sum of the net revenue of all listed brands of pharmaceutical items to which paragraph (a) applies for the data collection period if each of those listed brands had instead been sold for the average approved ex‑manufacturer prices by:
 (i) multiplying the adjusted volume worked out under step 2 for each of those listed brands by the average approved ex‑manufacturer price for each of those brands worked out under step 3; and
 (ii) adding up the amounts worked out under subparagraph (i); and
 (c) reducing (but not below zero) the amount worked out under paragraph (b) by the amount worked out under paragraph (a); and
 (d) working out the net revenue 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