Cheaper medicines will be available under a new four-year deal following an agreement between the State and pharmaceutical companies.
The agreement will also speed up access to new drugs for public patients and it will also see more use of generic medicines.
The deal reached between the State and the Irish Pharmaceutical Healthcare Association (IPHA) was approved by Government today, following months of talks.
The IPHA represents research-based companies that make branded medicines.
Under the deal, the State will also secure savings on the price of some existing medicines, and have more use of generics, through a separate agreement reached with the makers of generic drugs.
The IPHA said that the agreement on the pricing and supply of medicines reflected a continued desire on all sides to invest in treatments that improved outcomes for patients.
It previously said that it expects its member companies to apply to the HSE to make around 32 new medicines available this year.
It has said that around 6,000 patients could benefit from this.
These new medicines cover breast, lung and gynaecological cancer treatments, leukaemia, type 2 diabetes, weight management and heart disease.
Budget 2026 provided for €30 million for new life-enhancing medicines.
The medicines bill for the State this year will be around €4 billion.
Many new medicines can cost over €100,000 per patient, per treatment.
The State has been pressing for cost-effective treatments, that show value for money, given the finite health budget and many competing health pressures.
Under Budget 2026, the pharmaceutical industry was also given an increased tax credit for research and development, which rose from 30% to 35%.
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Minister for Health Jennifer Carroll MacNeill said that the framework agreement in principle will support greater predictability and stability for Ireland's pharmaceutical and medicines supply.
Medicines for Ireland has also welcomed the agreement.
In a statement, it said that it "represents a significant step forward in strengthening Ireland's medicines supply system, ensuring continuity of access for patients, and supporting the long-term sustainability of the health service".
