A spokesperson for the Minister for Health has said he may have to consider using existing legislation to achieve savings in the cost of medicines.
It follows reports in the Sunday Business Post that Leo Varadkar was considering using legislative powers to impose a price cut on pharmaceutical firms.
The newspaper carried out a sample survey of a number of prescription drugs, which found Ireland was paying more for its medicines than other European countries.
The minister's spokesperson said Mr Varadkar was determined that the State would have the funds to ensure patient access to effective new therapies, and that to do this, savings must be achieved in the existing cost of medicines.
The spokesperson said the minister was keen to do this in cooperation with the industry.
However, the spokesperson said should this not prove possible, all alternatives, including the use of provisions of existing legislation, would have to be considered.
Discussions on a mid-term review of a pricing agreement between the Government and the Irish Pharmaceutical Healthcare Association, which represents the pharmaceutical industry in Ireland, have been taking place since the final quarter of last year.
Responding to news that the minister was willing to consider using legislative powers to impose price cuts, the IPHA said its members companies had played a major role in assisting the Government in controlling health expenditure.
In a statement, the IPHA said ten separate price reductions had been provided by its member companies in the past seven years, and that savings of €800 million had been delivered between 2006 and 2012.
The IPHA said a further €400 million in savings was set to be delivered under the current supply agreement this year.
It also said these price cuts had occurred in the context of a big increase in medical cards.
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