The Health Minister Leo Varadkar has given a deadline to pharmaceutical companies to lower the prices they charge the state.

In an interview with the Sunday Business Post, the Minister said drug manufacturers will have to agree to cut their prices by June, or else he will use existing legislation to force a reduction.

The state spends near €2bn annually on medicines.

But the Government has been criticised for not driving a harder bargain with pharma multi-nationals - many of whom have manufacturing bases here.