Australia's pharma industry signs historic agreement with government to save A$1.9 billion

As has been forecast, trade group Medicines Australia member companies today signed a historic agreement with the Commonwealth Government that will, it says, ensure a stable environment for business and continued access to new medicines for all Australians.

The agreement delivers savings to taxpayers of A$1.9 billion ($1.44 billion) over five years. It carries a government commitment that pharmaceutical companies will not be asked to bear any further price-related savings measures before June 30, 2014. The agreement also introduces some important regulatory reforms to improve patients' access to innovative new medicines through the Pharmaceutical Benefits Scheme, the group said.

Medicines Australia chief executive Brendan Shaw said the savings will enable the government to redirect funding to its substantial health care reforms, noting: 'For the first time in the history of the PBS we have a written agreement that provides government with fiscal certainty.'