Australia’s innovative medicines industry has called on the Abbott Government to negotiate a five-year strategic agreement after it reached an in-principle deal with the Pharmacy Guild of Australia.

Medicines Australia CEO, Tim James, said the sector that invents and manufactures medicines is seeking certainty from the Government following more than $3 billion in budget savings.

“While Medicines Australia is yet to see the detail of the Pharmacy Guild agreement, the apparent 23% increase in funding will provide certainty for pharmacists and ensure patients are able to have prescriptions filled in much the same way as they always have,” Mr James said.

“Like the Guild, our members are seeking certainty from the Australian Government.

“We all want the very best PBS for Australian patients.”

While the Pharmacy Guild was able to secure certainty with a significant increase in funding for their members, the sector that invents and manufactures medicines is being forced to provide more than $3bn in savings.

“Timely access to medicines is critical in ensuring an effective healthcare system and manufacturers are a vital component to this equation: researching, discovering, developing and bringing new and innovative treatments to Australian patients,” Mr James said.

“However, ad hoc cuts to the medicines budget threaten Australians’ access to new medicines and are a poor choice for government savings. History has shown that most of the savings made in the PBS are not re-invested in innovative new medicines for Australians.

“Medicines Australia believes that an agreement can and should be reached, one that includes all key sectors of the medicines supply chain, to meet the needs of government, industry and consumers.

“We will continue to work on reaching an agreement in the comings days and weeks.

“We remain optimistic this government will adopt a similar constructive, respectful and reasonable approach to that taken when Prime Minister Tony Abbott was the health minister in 2007, and substantial savings were achieved – savings that are still flowing through today.

“Our industry has always worked constructively with government to ensure the sustainability of both the PBS and the innovative medicines industry.

“The Prime Minister was very hands-on during that process to ensure the policy objectives of the executive government were achieved and neither the government nor industry were hindered by potentially narrow, bureaucratic constraints.

”We look forward to hearing from the government about where to go next to ensure there are no barriers to bringing new medicines to the people that need them and to ensuring the viability of such an important industry to Australia’s health.

“We just want to ensure Australians have access to the best PBS.”

-ENDS-

Contact Person:

Alexia Vlahos
Phone: (02) 6122 8503
Email: Alexia.Vlahos@medicinesaustralia.com.au

Australia’s peak medicines body has called on the Federal Government to clarify the extent of Budget cuts likely to affect essential and life-saving pharmaceuticals.

Medicines Australia remains concerned that billions of dollars will be stripped from the Pharmaceutical Benefits Scheme in a move that will undermine patient access to breakthrough medicines.

The organisation representing the companies that make medicines warned that potential Budget cuts could lead to a two-tier system in which only the more wealthy can afford the latest medicines.

“All Australians deserve access to the world’s best medicines and we must avoid policy measures that will damage the PBS,” Medicines Australia CEO Tim James said.

“Health is consistently the highest priority for Australians. We know how much medicines matter to people and the PBS is greatly valued by Australians. Access to medicines is essential for people to participate in full and productive lives.

“The medicines industry has previously worked with government to deliver sustainable, significant and enduring PBS savings worth more than $20 billion over the period 2007-2018. Medicines Australia remains ready to work with the Minister to deliver access to the best medicines for Australian patients.

“A stable PBS helps patients, supports thousands of medical researchers and jobs and encourages investment in medical research in Australia.”

Mr James highlighted that Australian patients already face very considerable challenges with access to new medicines.

A report released this year found Australia ranked 18th among the top 20 OECD countries in access to new medicines, with cancer patients waiting an average of 573 days for new drugs that have already received regulatory approval by the Therapeutic Goods Administration.

“Medicines Australia calls on the Government to work constructively with industry to deliver solutions that will not damage the PBS,” Mr James said.

-ENDS-

Contact Person:

Elizabeth de Somer
Phone: 0418 774 596
Email: elizabeth.desomer@medicinesaustralia.com.au

Health Minister, Sussan Ley’s announcement to list new medicines and vaccines on the PBS for cancer, blindness and shingles will be welcomed by many patients who have been waiting for these treatments to be available to them.

Medicines Australia chief executive Tim James said

“Listings of new medicines are supposed to happen. The PBS offers the Government a strong investment in the future health and productivity of Australians and it is why costeffectiveness tests are required”.

“But, I am concerned that new listings, like these, will become increasingly difficult if the Government imposes the arbitrary funding cuts that have been proposed for the PBS in the coming budget.”

“These are exactly the types of new medicines that could be under threat and not available to all Australians if the cuts go ahead, and the only losers will be patients”, he said

“Both community and industry are already concerned with the time it takes for these medicines to be considered and finally made available to patients. Some of these patients have been waiting more than a year for these medicines to become available to them”, said Mr James.

“Proposed funding cuts will make this situation worse for patients and more difficult for the companies that make medicines. Australia will lose opportunities for the newest and best medicines and it will be more difficult for investments in future medical research to be made”, Mr James explains.

“Ironically, these cuts could actually increase the cost of the best medicines for Australians. If new medicines are not listed on the PBS in future it would mean that only the most well-off Australians could be able to afford them.”

Medicines Australia wants to work constructively with the Government to deliver a better and more stable solution – one that won’t damage the PBS like the funding cuts that are currently being considered.

-ENDS-

Contact Person:

Alexia Vlahos
Phone: (02) 6122 8503
Email: Alexia.Vlahos@medicinesaustralia.com.au

Medicines Australia welcomes the announcement of a review of the PBAC Guidelines.

“We are pleased that the Government has announced that a review of the PBAC Guidelines will be undertaken,” Medicines Australia CEO, Tim James, said.

“Any opportunity that we can have to improve the quality of our health technology system in Australia must be taken, for Australia to keep pace with the rest of the world.”

The volume and depth of information provided by pharmaceutical companies to the PBAC in health technology submissions is large and growing. As new technologies are developed and drug discovery and research becomes more complex and targeted to specific genetic variations, it is critical to continuously review the guidelines that underpin the system.

“Medicines Australia is committed to good, high quality health technology assessment in Australia and is always ready to work with the government to ensure this is achieved,” Mr James said.

“Medicines Australia would also welcome regular monitoring and reporting of how the guidelines are being used in practice. This would help to establish whether improving the guidelines leads to improved access to medicines for Australian patients.

“Further, this provides a perfect time to review health technology assessment methods and a timely consideration of how to better capture the full value that medicines provide to the population, as well as to the participation and productivity of Australians.

“The Pharmaceutical Industry is always ready to work with Government to ensure the goals of the National Medicines Policy are supported and advanced.

“We have already demonstrated our commitment to ensuring a sustainable Pharmaceutical Benefits Scheme and we will continue to support measures that recognise the value of innovation through best practice health technology assessment.”

-ENDS-

Contact Person:

Alexia Vlahos
Phone: (02) 6122 8503
Email: Alexia.Vlahos@medicinesaustralia.com.au

Medicines Australia CEO, Tim James, today welcomed the authorisation by the Australian Competition and Consumer Commission (ACCC) of the 18^th Medicines Australia Code of Conduct, which requires reporting of payments by pharmaceutical companies to healthcare professionals for services or education.

After a significant period of negotiation and discussion between the ACCC, Medicines Australia and key stakeholders, the authorisation of the Code is another step towards greater transparency as a result of industry leadership.

“The ACCC’s authorisation is a significant step in increasing the transparency of relationships between the pharmaceutical industry and healthcare professionals,” Mr James said.

“This Code shows the leadership and integrity of the Australian pharmaceutical industry. It will also strengthen the transparency and trust which are so important in the relationship between the industry, healthcare professionals and the community.

“Improved transparency shows the community the importance of the work our member companies does with healthcare professionals to improve patient health outcomes.

“Greater transparency also increases confidence by patients that the working relationship between the industry and healthcare professionals is appropriate.”

The new Code will require Medicines Australia member companies to publicly report when a company pays a healthcare professional for a service or for educational purposes, including airfares, accommodation and conference fees.

“Before final acceptance of the Code, Medicines Australia will talk with our members to discuss the conditions proposed by the ACCC in their authorisation, which will need to be considered in detail,” Mr James said.

The new Code of Conduct is available on the Medicines Australia website

-ENDS-

Contact Person:

Alexia Vlahos
Phone: (02) 6122 8503
Email: Alexia.Vlahos@medicinesaustralia.com.au

Medicines Australia and medicines industry representatives have appeared before the Senate Inquiry into the availability of new, innovative and specialist cancer drugs in Australia, calling for improvements to create an optimised, modern, and flexible system to ensure access to cancer medicines for Australians.

“Our ability to treat cancer is now far in advance of the system that was designed some time ago, arguably twenty years ago, to provide access to treatments,” Mr Tim James, CEO of Medicines Australia said in his opening statement to the Senate Committee. “New, innovative and specialised medicines are a key driver of increases in patient survival, but the waiting time to list cancer medicines on the PBS is taking too long.”

“In fact, Australian patients wait six months longer for access to cancer medicines than other types of medicines, and on average 1.6 years from TGA registration to PBS listing. We believe cancer patients, namely the one in two Australians who will develop cancer during their lifetime, deserve better.”

Medicines Australia’s submission to the Senate Inquiry provided clear recommendations including the commitment to expert oncology and consumer input to the decision making process as well as streamlined submission pathways.

“Industry, government, healthcare professionals and consumers need to collaborate and take action now to improve access to cancer medicines.”

Based on the COMPARE report, over the period 2009-2014, Australian patients waited an average 1.6 years (573 days) from registration of a cancer medicine in Australia to its reimbursement on the PBS. This is the longest of any National Health Priority area in Australia.

“This delay in waiting times to get access means some cancer patients may die waiting for subsidised access to innovative and effective cancer medicines.

“Across the more than two hundred submissions to this inquiry, there is an overwhelming message of concern that maintaining the status quo is not sufficient.  There is strong and united desire for system improvements. Medicines Australia stands ready, willing and able to work with government and all stakeholders towards solutions.”

The Medicines Australia panel comprised CEO Tim James, MA Board Member and Managing Director of Pfizer Australia, David Gallagher, and Amgen Australia’s Executive Medical Director, Dr Mark Tennyson. Member companies Novartis Oncology, Merck Sharp & Dohme and Roche also presented to the Committee. They reiterated Medicines Australia’s recommendations to the inquiry and provided supporting evidence of company experiences in challenges faced providing access to cancer medicines in Australia.

-ENDS-

Contact Person:

Elizabeth de Somer
Phone: 0418 774 596
Email: elizabeth.desomer@medicinesaustralia.com.au

Latest figures from the Australian Bureau of Statistics show Australian pharmaceutical exports declined by 18 per cent to $2.9 billion in 2014, compared to $3.6 billion in the year before.

Since 2012, when they peaked at around $4.3 billion, Australian pharmaceutical exports have declined by more than 30 per cent.

“These figures are extremely disappointing,” Medicines Australia CEO, Tim James, said today.

“Pharmaceutical manufacturing is precisely the sort of activity that Australia should excel at. We have a highly-skilled labour force, a world-class infrastructure, a history of excellence in manufacturing innovation and, above all, a long-standing and well-justified reputation for manufacturing safe, high-quality medicines and vaccines.

“Despite this, new investment in pharmaceutical manufacturing in Australia remains negligible, which clearly shows that all these factors are simply not enough to keep Australia competitive.”

Unfortunately, the decline in Australian pharmaceutical exports comes at a time when the global market for medicines and vaccines is booming. It is already worth over US$1 trillion per year in sales, and is expected to nearly double in size by 2020.

“Much of this growth is going to come from emerging markets in Asia,” Mr James said.

“But right now, we just don’t have the correct policies in place to capitalise on this growth. If this continues, we will no doubt miss out on this once-in-a-generation opportunity, regardless of how good we may look ‘on paper’.”

Last year, Medicines Australia, in partnership with AusBiotech, submitted a joint proposal to the Australian Government on steps it should take to build a stronger pharmaceuticals industry in Australia.

Broadly, the proposal called on the Government to:

• ensure a stable, predictable and efficient business operating environment,
• strengthen Australia’s intellectual property system,
• enable growth in Australia’s local biotechnology sector, and
• enact globally competitive incentives such as tax breaks to encourage investment.

“Implementing these policies would show that the Australian Government is serious about attracting investment and that Australia is truly ‘open for business’,” Mr James said.

“Globally, the pharmaceutical industry invests billions each year in manufacturing. If we want to attract a bigger share of this investment, we be must be proactive, decisive and coordinated, especially with respect to the policy environment.”

-ENDS-

Contact Person:

Alexia Vlahos
Phone: (02) 6122 8503
Email: Alexia.Vlahos@medicinesaustralia.com.au

Analyses released yesterday and today show that government will achieve more than $16 billion in PBS savings from 2010-18, whilst listings of new medicines over this period will cost only $6 billion.

The analysis conducted by PharmaDispatch, translates to government savings of more than $2.70 for every $1 spent on new medicines between 2010 and 2018.

Medicines Australia CEO, Tim James, welcomed the analysis as it demonstrates clearly that ongoing PBS reforms are generating billions of dollars in savings, with enduring mechanisms to continue the generation of savings.

“We know that successive reforms have put the PBS on a stable footing and continue to generate ongoing savings for Government. This report adds further to the large body of evidence that shows PBS expenditure is sustainable,” Mr James said.

“The May 2013 Victoria University report showed PBS reforms will deliver more than $20 billion of savings over the period 2007-18, and most recently the 2015 Intergenerational Report (IGR) which acknowledged growth in pharmaceutical expenditure will remain stable, growing only modestly to 2027-28.”

Of the $16 billion in savings highlighted in today and yesterday’s analyses, $12 billion is from the impact of previous reforms, including mandatory price reductions and price disclosure, with more than $4.3 billion coming from other one-off measures.

“These analyses show categorically that PBS reforms are more than delivering on their stated intent to provide the headroom to list new and innovative medicines on the PBS. These reforms, which were conducted in partnership with the industry, have not only delivered savings, but also entrenched mechanisms in the PBS to generate savings well into the future,” Mr James said.

“With an established body of evidence that shows the PBS is sustainable and delivering major savings to government, it is important now to ensure Australians have timely access to new medicines.”

-ENDS-

Contact Person:

Alexia Vlahos
Phone: (02) 6122 8503
Email: Alexia.Vlahos@medicinesaustralia.com.au

New findings released by Newspoll [i] shows overwhelming support for access to new cancer medicines through the Pharmaceutical Benefits Scheme (PBS), for Australian patients.

Newspoll found 97 per cent of Australians strongly support the subsidisation of cancer medicines for curable cancers, including 95 per cent supporting medicines that ease symptoms and extend the life of patients with terminal cancer.

These findings coincide with a new White Paper – Improving access to cancer medicines – released by the Cancer Drugs Alliance (CDA), launched today.

Medicines Australia CEO, Tim James, said these findings further reiterate what the Australian people want from the health system, which is fast access to the best new treatments.

“The CDA White Paper provides significant insights into the Australian community attitudes regarding the importance of access to and the value of medicines. This comes at a time when Australia is lagging behind other countries in terms of access to medicines, as was reported in the COMPARE report, which was launched last week,” Mr James said.

The independent analysis presented in the COMPARE report shows Australia ranks 18^th out of 20 comparable OECD countries, only above New Zealand and Portugal.

“The Newspoll findings and CDA White Paper show that Australians want and expect access to new medicines. The COMPARE report demonstrates we are not getting them as quickly as other comparable OECD countries, and in some case we are not getting them at all. It’s time to take action,” Mr James said.

“These reports come at a time of increased scrutiny of access to new medicines in Australia, with a Senate Committee currently inquiring into the availability of new, innovative and specialist cancer drugs in Australia.

“We need a system that is fit for purpose now and into the future; and we need the emphasis to shift from the cost of medicines to the value they provide in keeping the Australian population healthy, participating and productive.”

Medicines Australia COMPARE report is available at https://medicinesaustralia.com.au/policy/publications/compare/.

1. [i] Community Perceptions of Cancer Treatment Research Report. Nationwide Newspoll omnibus of n=1,214 respondents aged 18 years and over conducted between 12 to 14 December 2014 about perceptions of government subsidisation of medicines through the Pharmaceutical Benefits Scheme.

-ENDS-

Contact Person:

Alexia Vlahos
Phone: (02) 6122 8503
Email: Alexia.Vlahos@medicinesaustralia.com.au

Medicines Australian Chairman, Dr Martin Cross has welcomed ongoing collaboration between the pharmaceutical industry and Government in addition to further improvements to the Governments post-market review programme, which was announced today by the Minister for Health, the Hon Sussan Ley.

 “This framework for post-market reviews is the result of collaboration between the Government and Medicines Australia, through the reinvigorated Access to Medicines Working Group (AMWG) and demonstrates that partnerships are crucial in delivering predictability for the Australian medicines industry,” Dr Cross said.

 Post-market reviews are a formal approach to monitoring medicines listed on the PBS.  The programme aims to improve quality use of medicines, education for patients and prescribers, and ensure the cost-effectiveness and ongoing viability of the PBS.

 “The industry had grown increasingly frustrated over recent years with the ad-hoc approach to post-market reviews; and whilst there have been gradual process improvements, until now, no agreed overarching framework existed and there was limited transparency to their conduct,” Dr Cross said.

 Dr Cross further welcomed Minister Ley’s acknowledgement that successful outcomes can be achieved when Government and industry work together to solve a joint area of concern, and encouraged further work through the AMWG.

 “Medicines Australia has consistently shown over recent years that it can work constructively with the Government to ensure the sustainability of the PBS.”

 Dr Cross reiterated the Minister’s statements on collaboration.

 “The reinvigorated AMWG has demonstrated that this is a successful format and has established a strong process for working together to achieve mutual goals,” Dr Cross said.

 “What is needed now is for us to continue the momentum we have gained through the AMWG to ensure that medicines are rapidly listed on the PBS for the benefit of all Australians.”

 The AMWG will continue to address other issues of mutual concern for the industry and Government, including early access to new medicines through a Managed Access Programme, interpretation of section 99ACB of the National Health Act, and improving transparency of inputs and outputs to the PBS listing process.

-ENDS-

Contact Person:

Alexia Vlahos
Phone: (02) 6122 8503
Email: Alexia.Vlahos@medicinesaustralia.com.au