Common use of Commonwealth Price Clause in Contracts

Commonwealth Price. 4.2.1 The Commonwealth price has been set on the basis of a formula which comprises the Ex-Manufacturer Price plus allowances for the supply of PBS medicines over and above that price. 4.2.2 In agreeing to a Commonwealth price for a particular medicine, the Commonwealth includes allowances for: (a) the cost to the approved pharmacist (price to pharmacists), which includes two components: (i) production of the medicine (Ex-Manufacturer Price); and (ii) wholesale distribution of the medicine; (b) the administration, handling and storage costs entailed in dispensing medicines by the pharmacy, including associated infrastructure; and (c) a pharmacist’s specialised skills in dispensing the medicines. 4.2.3 The components of the Commonwealth price during the Term, as agreed by the Commonwealth and the Guild, are as set out in Table 3 below. Additional detail on how these components are defined, calculated and applied will be set out in the Determination. wholesale ▇▇▇▇-up[1] 1 July Where the Ex- 7.52% of the Ex- (for RPPBs) 2015 Manufacturer Price Manufacturer Price per is up to and dispense including $930.06 Where the Ex- $69.94 per dispense Manufacturer Price is over $930.06 [1] The wholesale ▇▇▇▇-up for a pack quantity of a listed brand is calculated using the relevant quantity. administration, handling and infrastructure fee 1 July 2015 For a pack quantity of a listed brand with a price to pharmacists less than $180 $3.49 per dispense For a pack quantity of a listed brand with a price to pharmacists from $180 to $2,089.71 $3.49, plus 3.5% of the amount by which the price to pharmacists exceeds $180, per dispense For a pack quantity of a listed brand with a price to pharmacists more than $2,089.71 $70.00 per dispense dispensing fee (for RPPBs) 1 July 2015 $6.93 per dispense dispensing fee (for EPPBs) 1 July 2015 Dispensing fee for RPPBs, plus $2.04, per dispense dangerous drug fee (for RPPBs) 1 July 2015 $2.91 per dangerous drug dispensed 4.2.4 The: (a) AHI Fee; (b) dispensing fee for RPPBs; and (c) dangerous drug fee for RPPBs, 4.2.5 The wholesale ▇▇▇▇-up set out in Table 3 will not be Indexed during the Term. 4.2.6 The only change to EPPB pricing under this Agreement is the introduction of the AHI Fee.

Commonwealth Price. 4.2.1 The Commonwealth price has been set on the basis of a formula which comprises the Ex-Manufacturer Price plus allowances for the supply of PBS medicines over and above that price. 4.2.2 In agreeing to a Commonwealth price for a particular medicine, the Commonwealth includes allowances for: (a) the cost to the approved pharmacist (price to pharmacists), which includes two components: (i) production of the medicine (Ex-Manufacturer Price); and (ii) wholesale distribution of the medicine; (b) the administration, handling and storage costs entailed in dispensing medicines by the pharmacy, including associated infrastructure; and (c) a pharmacist’s specialised skills in dispensing the medicines. 4.2.3 The components of the Commonwealth price during the Term, as agreed by the Commonwealth and the Guild, are as set out in Table 3 below. Additional detail on how these components are defined, calculated and applied will be set out in the Determination. wholesale ▇▇▇▇-up[1] 1 July Where the Ex- 7.52% of the Ex- (for RPPBs) 2015 Manufacturer Price Manufacturer Price per is up to and dispense including $930.06 Where the Ex- $69.94 per dispense Manufacturer Price is over $930.06 [1] The wholesale ▇▇▇▇-up for a pack quantity of a listed brand is calculated using the relevant quantity. administration, handling and infrastructure fee 1 July 2015 For a pack quantity of a listed brand with a price to pharmacists less than $180 $3.49 per dispense For a pack quantity of a listed brand with a price to pharmacists from $180 to $2,089.71 $3.49, plus 3.5% of the amount by which the price to pharmacists exceeds $180, per dispense For a pack quantity of a listed brand with a price to pharmacists more than $2,089.71 $70.00 per dispense dispensing fee (for RPPBs) 1 July 2015 $6.93 per dispense dispensing fee (for EPPBs) 1 July 2015 Dispensing fee for RPPBs, plus $2.04, per dispense dangerous drug fee (for RPPBs) 1 July 2015 $2.91 per dangerous drug dispensed 4.2.4 The: (a) AHI Fee; (b) dispensing fee for RPPBs; and (c) dangerous drug fee for RPPBs,, as described in Table 3, will each be Indexed on the Indexation Date. 4.2.5 The wholesale ▇▇▇▇-up set out in Table 3 will not be Indexed during the Term. 4.2.6 The only change to EPPB pricing under this Agreement is the introduction of the AHI Fee.