Document ID: chunk:federal_register_of_legislation:C2007A00111:clause:1_99ace:p1
Version: federal_register_of_legislation:C2007A00111
Segment Type: clause
Provision Reference: sch 1 cl 99ACE (pt 1/2)
Character Range: 47175–49646

99ACE  Flow‑on of 12.5% price reduction to related brands of combination items

When section applies

 (1) This section applies if:
 (a) section 99ACD has applied to a brand (the new brand) of a combination item (the new combination item); and
 (b) the new agreed price for the new brand of the combination item comes into force on a day (the reduction day); and
 (c) on that day, a price agreement or a determination under section 85B is in force in relation to any of the following listed brands (the related brand) of a combination item (the related item):
 (i) another listed brand of the new combination item;
 (ii) a brand of another combination item that has a drug that contains the same component drugs as the new brand of the new combination item and that has the same manner of administration as the new brand of the new combination item;
 (iii) if the drug in the new combination item is in a therapeutic group—a combination item that has another drug that is in that group and has the same manner of administration as the new brand of the new combination item; and
 (d) the related item is not an exempt item.

Note: For the purposes of paragraph (c), the new brand and the related brand may be the same brand, or the new combination item and the related item may be the same pharmaceutical item.

12.5% price reduction

 (2) The approved price to pharmacists of the related brand of the related item ceases to be in force at the end of the day before the reduction day. The claimed price (if any) for the related brand of the related item ceases to be in force at the end of the day before the reduction day.

 (3) If a price agreement was in force on the day before the reduction day for the related brand of the related item, the Minister may:
 (a) in a price agreement, specify an agreed price for the related brand of the related item that:
 (i) comes into force on the reduction day; and
 (ii) subject to subsection (5), does not exceed the agreed price in force, on the day before that day, for the related brand of the related item, reduced by 12.5%; or
 (b) in a determination under section 85B for the related brand of the related item, specify a determined price that:
 (i) comes into force on the reduction day; and
 (ii) subject to subsection (5), does not exceed the agreed price in force, on the day before that day, for the related brand of the related item, reduced by 12.5%.

 (4) If a determination under section 85B was in force for the