8.1 Price agreement
Page last updated: October 2016
A price agreement or determination must be made for all brands of a pharmaceutical item to be listed on the PBS.
The price for a new listing is negotiated after the sponsor receives the PBAC Minutes explaining the PBAC’s recommendation to the minister.
Once negotiations have been completed and a price has been agreed in principle between the sponsor and the department, the sponsor should provide the department with a completed and signed pb11a form, called a ‘Request for approved ex-manufacturer price’ form. These are forwarded to the department by email or post (refer to contact details in Appendix A).
Agreement in principle of the price of the medicinal product to be listed is required before commencement of the revision of estimates of expected utilisation and financial impact (Section 8.2) and any deed negotiations (Section 8.4).
Where a sponsor seeks an SPA, and the department indicates it is prepared to recommend an SPA to the minister, then agreement in principle needs to be reached on both the published and effective price before the start of the revision of estimates of expected utilisation and financial impact and any further deed negotiations. Arrangements for an SPA are established through a deed of agreement (refer to Section 8.4.1).
8.1.1 Cost of goods (pb11b)
A completed and signed ‘Cost of goods information’ form for the medicinal product proposed for listing is required at the time of submission to the PBAC (refer to Section 5).
8.1.2 Price agreement timeframes
The deadlines and related effective dates are published in the PBS calendar.