Medicines Australia and Australian government sign five-year agreement around PBS

The representative body for the Australian pharma industry, Medicines Australia, has agreed to sign a ‘letter of intent’ with the Australian government for a five-year strategic agreement.

The agreement would provide Australian patients and manufacturers with some stability around ongoing access to innovative medicines delivered through the country’s Pharmaceutical Benefits Scheme.

Tim James, chief executive of Medicines Australia, said: “In return for providing the majority of A$6.6 billion ($5.1 billion) in cuts outlined by the government, our members have been given a number of undertakings and concessions regarding any future price-related savings throughout the life of the Agreement. Our member companies invest billions of dollars to research, invent and manufacture innovative medicines to treat patients. The continuation of this investment relies on a fair and stable price for a limited period. That is our social compact with governments and patients around the world. The continuation of this social compact requires stability in policy making. While this agreement does contain cuts to medicines already proven to be cost-effective, we welcome the limited stability and certainty that this agreement will provide over the coming five years.”