America's Pharmaceutical Giants Target Australia's Affordable Medicines
For decades, America's pharmaceutical giants have been plotting to dismantle Australia's Pharmaceuticals Benefits Scheme (PBS), a system that provides affordable access to essential medications for all Australians.
Their efforts intensified during the negotiation of the Australia-US Free Trade Agreement (FTA) in 2005. Big pharma secured major concessions, including the elimination of "reference pricing" – a tactic that compared the cost and effectiveness of patented drugs with cheaper generic alternatives. This change significantly increased the profitability of patented medications.
F1 (patented) and F2 (generic). While comparisons within the F1 category were allowed, F1 drugs could not be compared to cheaper generics. This further hampered the entry of affordable generic drugs into the market.
Furthermore, generic manufacturers were required to warn patent holders before entering the market, leading to costly delays and discouraging generic competition. As a result, generic drug production shifted offshore, increasing the risk of shortages due to mass-scale production.
American pharmaceutical companies also criticized Australia's delay in introducing new medications, claiming it as a non-tariff barrier. However, this delay allows the Pharmaceutical Benefits Advisory Committee to thoroughly assess the effectiveness of new drugs, ensuring Australians receive the best possible care.
The ultimate goal of America's pharmaceutical giants is to dismantle Australia's PBS and replicate their success in other countries like Canada, the UK, and Europe. They aim to exploit the imbalance of power in the pharmaceutical market, maximizing profits at the expense of patients' access to affordable medication.
This fight is not just about Australia. It's about ensuring that everyone, regardless of their location, has access to the essential medications they need. Australia's PBS serves as a model for affordable healthcare, and its dismantling would have devastating consequences for millions around the world.