Government reforms will see Australian pharmaceutical market surpass $25 billion by 2020

Australia’s pharmaceutical market is set to rise from just over $22.85 billion in 2016 to $25.2 billion by 2020, registering a compound annual growth rate (CAGR) of 2%, a new study indicates.

According to research and consulting firm GlobalData’s latest report, this modest growth will be driven by good market access to pharmaceutical drugs, increasing awareness of the need for the early detection of lifestyle and chronic diseases, the subsidized cost of prescription medicines through the Pharmaceutical Benefits Scheme (PBS) for all eligible patients, and the annual addition of new drugs to the PBS drug list.

Currently, the pharmaceutical market in Australia represents a knowledge-based, technology-intensive industry, and is positioned to advance Australia’s economic output and social wellbeing. The industry receives significant financial support from the government through the sale of medicine listed in the PBS and the R&D tax incentive, and there are 140 separate firms listed as suppliers to the PBS.