Pharmaceutical Industry Lobbying Against Australia's PBS System
The head of Eli Lilly, David Ricks, has expressed opposition to tariffs on Australian pharmaceuticals, despite lobbying efforts by the Pharmaceutical Research and Manufacturers of America (PHrMA) to pressure the US government into imposing such measures.
PHrMA, representing major pharmaceutical companies including Eli Lilly, has criticized Australia's Pharmaceutical Benefits Scheme (PBS) for its slow approval processes and "damaging pricing policies." They argue that the PBS prioritizes low-cost options over innovation, leading to delays in access to essential medications for Australian patients.
Ricks, however, clarifies that his company is not advocating for tariffs on Australian medicines exported to the US. Instead, he emphasizes the need for addressing "non-tariff trade barriers" related to market access and fair valuation principles. He believes these issues are not specific to Australia but are prevalent in various healthcare systems globally.
The PBS system requires pharmaceutical companies to provide detailed evidence of a drug's benefits before approval. This process, according to the industry, hinders innovation and delays access to crucial medications. Ricks argues that breakthroughs with significant health impacts deserve fair valuation and rewards.
Despite the industry's pressure, both sides of Australian politics have vowed to protect the PBS, which provides subsidized medicines to millions of citizens. Prime Minister Anthony Albanese and Opposition Leader Peter Dutton have affirmed their commitment to the scheme, emphasizing its importance for Australians.
The government has further strengthened its support for the PBS by investing an additional $689 million, reducing the maximum price for PBS-listed drugs. Treasurer Jim Chalmers has declared the PBS a "great Australian institution" and pledged to uphold its integrity.
While the government remains committed to the PBS, a 2022 Health Technology Assessment (HTA) report identified areas for improvement. The report found that Australians experience a 22-month wait for medicines to be listed on the PBS, significantly longer than in other developed nations.
Health Minister Mark Butler is currently reviewing the HTA recommendations and acknowledges the need for faster approvals. He aims to ensure timely access to the best therapies at an affordable cost for patients and the community.
The debate surrounding the PBS highlights the complex dynamics between pharmaceutical companies, governments, and patients. While the industry seeks faster approvals and higher valuations for innovative drugs, the government prioritizes affordability and access to essential medications for its citizens. Finding a balance between these competing interests remains a crucial challenge for policymakers.