Australia's pharma industry calls for discount rate reduction now

Today, Australia’s Pharmaceutical Benefits Advisory Committee (PBAC) – the expert committee that evaluates the value of medicines in in the country – published advice recommending Australia’s discount rate could be lowered between 3.5% - 4% to bring the country closer to other recommended international standards. This is down from the current 5%.

While welcoming the recommendation, pharma industry trade group Medicines Australia questions why it should be delayed for two years. The group had actually called for the rate to be dopped to 1.5%, the lowest discount rate used in all countries surveyed by both Medicines Australia and is only used as a standard discount rate by one other country (Canada).

Medicines Australia chief executive Elizabeth de Somer says medicines and vaccines that have long-term health benefits, such as childhood vaccines, are disadvantaged and delayed by a technical discount rate that is higher in Australia than other comparable countries.