Australian PBS prices slash in effect; clinical trial investment

On April 1, 2012, in Australia, publicly funded generic medicines on the Pharmaceutical Benefits Scheme (PBS) underwent an overnight average minimum 23% price reduction. This is the largest single price cut in the PBS history. The impact of this reform will be extensive and will deliver substantial savings to government, notes the Australian Generic Medicines Industry Association (GMiA).

However, few patients will benefit from the price disclosure reform. Those who need most relief such as concessionary patients (80%) all pay the same co-payment (A$5.80) regardless of the price the medicines are sold to the pharmacist. Nonetheless, it will be a significant windfall for taxpayers. This should provide relief to the PBS and avoid any need to cut any further into the PBS in this coming Federal Budget, says the GMiA.

These reforms come at a significant cost to the pharmaceutical industry. "The current PBS scheme is already subject to complex reforms. For the sake of patients and ensuring a secure and consistent chain of supply, we need to get those reforms bedded down first before embarking on any more policy change," says Kate Lynch CEO of GMiA. “The industry, the distributors and the pharmacists have worked hard to ensure continuity of supply of important medicines on the PBS. “Getting medicines to the patient safely and on time is the priority for the industry,” she added.