Price reduction for brands listing after end of data collection period
99ADHA Price reduction for brands listing after end of data collection period
When this section applies
This section applies if:
a determination under subsection 85(6) is in force on the reduction day in relation to a brand (the new brand) of a pharmaceutical item (the existing item); and
the determination came into force:
after the last day of the period in respect of which the weighted average disclosed price is determined for another brand (the existing brand) of the existing item; and
before the reduction day; and
the approved ex‑manufacturer price of the existing brand of the existing item is reduced on the reduction day under subsection 99ADH(3).
Price reduction
On the reduction day, the approved ex‑manufacturer price of the new brand of the existing item is taken to be reduced to the same amount as the approved ex‑manufacturer price of the existing brand of the existing item on that day.
Claimed price reduction
If, on the reduction day:
a determination under subsection 85B(3) is in force in relation to a particular pack quantity of the new brand of the existing item; and
the approved ex‑manufacturer price of the new brand of the existing item is reduced because of subsection (2);
then, on the reduction day the claimed price for that pack quantity of the new brand of the existing item is taken to be reduced by the percentage worked out as follows:
Start formula start fraction AEMP1 minus AEMP2 over AEMP1 end fraction times 100 end formula
where:
AEMP1 means the amount that would have been the approved ex‑manufacturer price of the new brand of the existing item on the reduction day if the reduction under subsection (2) had not occurred.
AEMP2 means the approved ex‑manufacturer price of the new brand of the existing item on the reduction day.
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