Consultant oncologist and Senator John Crowne says pharmaceutical companies will not be put off coming to Ireland if we prescribe generic drugs.

The government is attempting to bring down the cost of drugs in Ireland and the Irish Times says the Taoiseach has been subjected to an intense lobbying campaign by the pharmaceutical industry over a Health Service Executive (HSE) decision not to approve new drugs for payment.

The Irish Times says that up to 20 multinational drug firms claimed that the HSE move was portraying Ireland negatively and could have "unintended consequences" for Ireland.

Ireland 'portrayed negatively'

In one letter the President of Eli Lilly John C. Lechleiter warned that  "your Government’s recent decision not to reimburse new medicines puts at risk this aspiration and portrays Ireland negatively to inward investors such as Lilly".

"I believe further price cuts and a blanket ban on reimbursement of new medicines could have a number of unintended consequences for the wider Irish economy" he added.

While the chairman of Johnson and Johnson William C. Weldon wrote to the Taoiseach saying "When new medicines are scientifically and independently judged to be of value and improve health outcomes, it is imperative that they are made available to Irish patients"

It has also emerged that the price paid for drugs in Ireland is of critical importance for pharmaceutical companies as it influences the price in many other countries as part of an international price-referencing effect.

Senator Crowne told Breakfast here on Newstalk that drug companies choose to locate here for many reasons.