Health expenditure Australia 2010-11, published today by the Australian Institute of Health and Welfare shows that expenditure on the Pharmaceutical Benefits Scheme was stable despite spending on overall medicines growing by $2.1 billion.

Medicines Australia chief executive Dr Brendan Shaw said the report was further evidence that while patients were spending more on over-the-counter medicines, PBS spending was well under control.

“While people have been warning that the ageing population will bankrupt the country, these figures on Australia’s health spending suggest that the sky isn’t falling on our heads any time soon,” Dr Shaw said.

“The report shows that PBS expenditure is fairly flat. The PBS grew just 1.6 per cent in real terms and the proportion of patient contribution to PBS costs actually fell.

“In the same period overall spending including over-the-counter medicines grew by 28 per cent.

“The total reported expenditure on medicines includes not just prescription medicines but also over-the-counter products from vitamin pills to cough syrups and condoms.

“It tells us consumers are self-selecting and choosing to spend more on over-the-counter products, at a time when spending on prescription medicines remained stable.

“At a growth rate of 1.6 per cent, PBS spending failed to keep up with economic growth and recorded its lowest growth rate in more than a decade.

“This data should give health economists and finance ministers and a very clear message that Government spending on the PBS is being well contained.

“The report also shows that as a proportion of GDP total health expenditure actually fell by 0.1 of a percentage point, or $1.4 billion.

“That completely confounds the dire picture painted by the Government’s Intergenerational Reports.

“The bottom line is that despite concerns about an ageing population, Government spending on health is down and spending growth for the PBS is negligible.”

-ENDS-

Contact Person:

Jamie Nicholson
Media Communications Manager
Phone: 0419 220 293
Email: Jamie.Nicholson@medicinesaustralia.com.au

The Australian medicines industry’s R&D investment has exceeded $1 billion for the third successive year, according to the annual Australian Bureau of Statistics business expenditure report on R&D released today.

The ABS figures show that the medicines industry attracted $1.036 billion in R&D investment in 2010-11. The medicines industry’s R&D investment was the third largest by area of business expenditure, behind financial services and mining.

Medicines Australia chief executive Dr Brendan Shaw said the new ABS data highlighted the value of the Australian medicines industry to the national economy.

“These figures confirm Australia’s reputation as a global centre for R&D excellence,” Dr Shaw said.

“Australia boasts some of the best scientists and research infrastructure in the world. That is an advantage we must continue to capitalise on.

“These figures point to the untapped potential to leverage this success and grow this industry into a powerhouse for Australia’s economic future. They show that the medicines industry is one of Australia’s key innovative industries.”

Dr Shaw said the introduction of the new R&D tax credit system introduced in August 2011 had effectively reduced the cost of eligible R&D by up to 10 per cent.

“The R&D tax credit is helping to boost investment in Australian R&D at a time when Australian companies are facing strong international competition for R&D investment dollars,” Dr Shaw said.

“Maintaining the R&D tax credit incentive is key to continuing investment in R&D in Australia and supporting high-value research jobs.

“Australia is facing fierce competition for clinical trial investment from countries such as Brazil, India and China. We have been losing clinical trials to these competitors.

“To be more competitive, we urgently need to see the implementation of the recommendations of the Government-appointed Clinical Trials Action Group.

“That will help Australia be more attractive as we compete for investment dollars.”

The medicines industry conducts more than 700 clinical trials in Australia each year. More than 18,000 Australians are given early access to innovative medicines, medical devices and diagnostics through clinical trials each year.

-ENDS-

Contact Person:

Jamie Nicholson
Media Communications Manager
Phone: 0419 220 293
Email: Jamie.Nicholson@medicinesaustralia.com.au

Australia is a world leader in pharmaceutical industry conduct, and will continue to work towards further transparency of industry’s interactions with healthcare professionals, Medicines Australia chief executive Dr Brendan Shaw said today.

Responding to the implementation of the new expanded International Federation of Pharmaceutical Manufacturers and Associations’ Code of Practice, Dr Shaw said Australian consumers can be confident that the standards of ethical conduct and transparency demanded by the Medicines Australia Code of Conduct far exceed those of other countries.

“The expanded global Code is a positive step forward. It articulates high-level principles that hold companies to a high standard of ethical conduct,” Dr Shaw said.

“It also imposes new requirements that have been in place in Australia for many years, such as banning personal gifts and the provision of entertainment at educational events.

“The global Code underscores how much further ahead of most countries Australia is in this regard.

“The new draft Medicines Australia Code of Conduct is proposing far greater transparency than exists in most other markets.

“The Code will require member companies for the first time to provide public disclosure of aggregate payments to doctors and consumer groups.

“Medicines Australia has also established a Transparency Working Group that brings together consumers and healthcare professionals to consider what extra measures are required to provide the level of transparency that the community expects.

“Transparency is important because it builds public trust and confidence. That is why we are now working to agree on a model for further transparency that is workable and useful.

“Australia should be very proud that we are a global leader in ethical conduct and transparency in the medicines industry. Medicines Australia member companies will continue to strive towards ensuring those high standards are upheld.”

-ENDS-

Contact Person:

Jamie Nicholson
Media Communications Manager
Phone: 0419 220 293
Email: Jamie.Nicholson@medicinesaustralia.com.au

Medicines Australia chief executive Dr Brendan Shaw today urged the Government to implement the recommendations of the Prime Minister’s Manufacturing Taskforce report.

Dr Shaw said the Smarter Manufacturing for a Smarter Australia report raises important issues facing Australia’s manufacturing sector that need to be tackled.

“This report is an opportunity to lay out a clear roadmap for the future of Australian manufacturing, and I encourage the Government to grasp it,” Dr Shaw said.

“The taskforce has highlighted some key opportunities such as building better links between universities and industry, greater engagement in global value chains and capitalising on the rise of the Asian economies.

“Importantly, the taskforce underscores the value of the R&D tax credit.

“The Australian manufacturing sector will be better placed to reach its potential if these recommendations are implemented.

“Australia already has a medicines industry with export earnings exceeding $4 billion year and attracting over $1 billion a year in R&D investment. We have the potential to do so much more.

“Australia has a long history of not reaching its full potential in developing innovative technologies, businesses and industries despite having the basic building blocks for doing so.

“A strategy that encourages innovative industries like the medicines industry to reach their full potential is critical to ensuring Australia’s post-mining boom future and providing competitive high-skill, high-wage jobs for Australians.

“We support the idea of a cross-sectoral industry support program that may not necessarily target a particular firm or industry, but encourages the competitive activities of a suite of innovative industries that we need to do more of if Australia is to benefit from its great scientific base.

“The Australian medicines industry is one industry which has the potential to contribute more than it already does to Australia’s economy but needs the right policy settings to be put in place.

“We need to get better at capitalising on the things we do well.”

-ENDS-

Contact Person:

Jamie Nicholson
Media Communications Manager
Phone: 0419 220 293
Email: Jamie.Nicholson@medicinesaustralia.com.au

Medicines Australia chief executive Dr Brendan Shaw today congratulated David Quilty on his appointment as executive director of the Pharmacy Guild of Australia.

Dr Shaw also congratulated retiring executive director Wendy Phillips on her contribution to pharmacy and the broader healthcare sector over her 20-year career with the Guild.

“I congratulate Mr Quilty on his appointment look forward to engaging constructively with him on key industry issues of common interest,” Dr Shaw said.

“Pharmacy is a key part of the health sector and important to community welfare. Mr Quilty’s appointment comes at an important time on a range of fronts.

“Medicines Australia has enjoyed a good working relationship with the Pharmacy Guild under Wendy Phillips’ leadership.

“Wendy has always been a great contributor to health policy. She has been a passionate and unremitting advocate for pharmacy and I wish her well in her retirement.”

-ENDS-

Contact Person:

Jamie Nicholson
Media Communications Manager
Phone: 0419 220 293
Email: Jamie.Nicholson@medicinesaustralia.com.au

Medicines Australia has invited the AMA, the Royal Australian College of Physicians, the Consumers Health Forum and other key healthcare and consumer organisations to join a newly established Transparency Working Group.

The Transparency Working Group, to be chaired by Medicines Australia Board member Dr Dominic Barnes, will develop new measures to increase transparency of pharmaceutical company payments to healthcare professionals.

Medicines Australia chief executive Dr Brendan Shaw said the group would be asked to recommend what further transparency measures should be introduced that would best serve the community.

“The working group will evaluate the different models for further transparency and identify an effective mechanism for ensuring additional transparency of what is a vital relationship for the effective operation of the health system,” Dr Shaw said.

“Industry engagement with doctors and other healthcare professionals is important because patients want to be sure that their doctors know how to use the medicines they’re being prescribed.

“Transparency is critical because it builds public confidence in the valuable and necessary engagements industry has with consumers and healthcare professionals.

“Consumers and peak doctor groups support industry moves to further transparency, and that’s why we’re committed to it.

“There are a number of possible models for further transparency and the key task for the working group will be to recommend a model that is practical and provides consumers with the information they need.

“The Australian medicines industry is serious about improving the transparency of its payments to healthcare professionals, and we want this working group to identify the best way to do this.

“I am confident that by bringing together this broad-based group of health, government and consumer stakeholders, we will end up with a set of transparency measures that are meaningful and worthwhile for the community.”

The working group will meet monthly from September 2012 and will report to the boards of the working group member organisations by December 2013, with interim reports every six months.

-ENDS-

Note to editors: The organisations invited to join the Transparency Working Group are: Australian Medical Association, Consumers Health Forum, CHOICE, Generic Medicines Industry Association, Healthy Skepticism, Office of the Australian Information commissioner (formerly Privacy Commissioner), Pharmaceutical Society of Australia, Pharmacy Guild of Australia, Department of Health and Ageing, Royal Australasian College of General Practitioners, Royal Australian College of Physicians, and Royal Australian College of Surgeons. The managing directors of two Medicines Australia member companies have also been invited to join.

The Transparency Working Group’s terms of reference are available here

Contact Person:

Jamie Nicholson
Media Communications Manager
Phone: 0419 220 293
Email: Jamie.Nicholson@medicinesaustralia.com.au

Medicines Australia chief executive Dr Brendan Shaw today made the following statement in response to the release of the Treasurer’s Business Tax Working Group discussion paper:

“Medicines Australia is extremely concerned that the Business Tax Working Group is considering as an option a change to the R&D tax credit, barely a year after it was introduced.

“Any winding back of the R&D tax credit would discourage investment in Australia and cost high-value research jobs. It would be extremely damaging to R&D investment in Australia and to our reputation as a predictable investment destination.

“On the R&D tax credit the Working Group’s discussion paper gets one thing right when it says ‘the reforms could, depending on transitional arrangements, affect the returns of long-term projects that were modelled on the basis of the pre-existing regime. As a result, some companies may relocate their R&D to countries that offer better incentives.’

“Australia currently attracts more than $1 billion a year in pharmaceutical R&D investment. That investment would diminish if there were any winding back of the tax credit.

“Some companies would simply stop bringing R&D investment dollars to Australia.

“The Government went through an extensive consultative process in developing the tax credit system to replace the previous tax concession. To do a backflip on such an important policy measure after barely a year would send quite the wrong signal to the investment community.

“The tax credit is the only incentive the Government offers companies to invest in Australian R&D and it absolutely must be retained. It is time for the Government to support its own policy and categorically rule out the Working Group’s option to wind back the R&D tax credit.

”At the end of the day, the Government is going to have to decide whether Australia’s future is in encouraging innovative industries or just digging things out of the ground.”

-ENDS-

Contact Person:

Jamie Nicholson
Media Communications Manager
Phone: 0419 220 293
Email: Jamie.Nicholson@medicinesaustralia.com.au

Biologic medicines represent the next frontier of treatment for many previously untreatable illnesses and conditions, Medicines Australia chief executive Dr Brendan Shaw said today following the launch of a publication highlighting the value of biologic medicines.

Biotherapeutic Medicines: Grasping the New Generation of Treatments is published by the International Federation of Pharmaceutical Manufacturers & Associations, and highlights the dramatic increase in treatment options resulting from the development of biological medicines.

Biologic medicines are derived from proteins and other substances produced by living organisms, such as mammalian cells, viruses and bacteria.

“More than 350 million patients worldwide are leading healthier lives thanks to biologic medicines,” Dr Shaw said.

“These medicines are being used for the effective treatment of illnesses that were not previously treatable with simpler chemical entities.

“Biologic medicines and vaccines represent the cutting edge of medicine and have the potential to deliver the most effective means of treating and diagnosing some of humanity’s most appalling diseases.

“Over 250 innovative human-use biologics have been approved since 1990 and more than 900 are currently under development globally, targeting diseases such as cancer, AIDS, arthritis, Alzheimer’s and Parkinson’s.”

Dr Shaw said the increasing prevalence of biological treatments required sound intellectual property policy and specific regulatory standards.

“Biologics are more complex and costly to produce than chemical medicines,” Dr Shaw said.

“The level of testing and clinical studies required to compare the effectiveness of different biologic medicines presents regulators in Australia and elsewhere with a new set of challenges.

“Biologic medicines and their generic copies, called biosimilars, are often not interchangeable with each other in the same way that chemical-based medicines are, so regulatory approval systems need to evolve to cope with evaluating such medicines.

“Intellectual property protection is another crucial policy element as it underpins further research and development of biologic medicines and ensures Australians have access to these medicines as soon as they become available.

“This includes assurances that policies on things like patents and clinical trial data are up-to-date with the requirements of biologics medicines.”

Biotherapeutic Medicines: Grasping the New Generation of Treatments is available from the IFPMA website

-ENDS-

Contact Person:

Jamie Nicholson
Media Communications Manager
Phone: 0419 220 293
Email: Jamie.Nicholson@medicinesaustralia.com.au

The medicines industry was the Australian manufacturing sector’s biggest high-tech export earner in 2011-12 according to figures published today by the Australian Bureau of Statistics.

The new ABS report shows exports of pharmaceutical and medicinal products totaled $4.059 billion in 2011-12, up from $3.744 billion in 2010-11.

By comparison, exports for the car industry in 2011-12 were $2.767 billion, and for the wine industry $2.032 billion (see chart below).

Medicines Australia chief executive Dr Brendan Shaw said the growth of pharmaceutical exports highlights the Australian medicines industry’s sustained contribution to the economy.

“By any measure, this is an outstanding export performance,” Dr Shaw said.

“While the majority of other manufacturers are losing ground, medicines industry exports grew 7 per cent over the last year.

“In terms of export earnings for 2012, the medicines industry was almost $1.3 billion ahead of its nearest rival, the car industry.

“This is an incredible achievement when you take into account the performance of the broader manufacturing sector, the high dollar and the fact that the medicines industry receives no co-investment from government.

“This kind of result highlights just how resilient the medicines industry is given the prevailing market conditions, and underscores the industry’s potential to be a key player in the post-mining boom economy.

“The Australian medicines industry is a high-skill, high-wage, science-based, innovative, low carbon footprint industry and an equal opportunity employer.

“As a nation we already earn more in exports from medicines than cars or wine, but with revamped policy settings and incentives from Government we could build the Australian medicines industry into one of our key innovative export industries.

“Asian countries currently account for approximately half of pharmaceutical exports from Australia.

“With the right policy incentives, Australian medicines exports to Asia could increase fivefold by 2020. Given our proximity and the expanding Asian market, the opportunities are tremendous.”

-ENDS-

NOTE: The export figures can be downloaded from the ABS website: ABS catalogue 5368.0 International Trade in Goods and Services, Australia, Table 12a. MERCHANDISE EXPORTS, Standard International Trade Classification (1 and 2 digit), FOB Value, June 2012

Pharmaceutical exports vs. other manufactured exports 12 months to June 2012

Contact Person:

Jamie Nicholson
Media Communications Manager
Phone: 0419 220 293
Email: Jamie.Nicholson@medicinesaustralia.com.au

Medicines Australia supports activities underway this week to raise awareness of the impact of chronic pain in Australia and to find ways to help those living with pain.

“Medicines Australia applauds the efforts of Chronic Pain Australia and its partners in organising National Pain Week to raise awareness of the challenges faced by those living with chronic pain”, said Medicines Australia chief executive Dr Brendan Shaw.

“Chronic pain affects 29 per cent of Australians, and even if we don’t experience chronic pain ourselves, 61 percent of Australians know someone who lives with the condition.

“It is important that we do all we can to improve the quality of life for people with pain and to support those working in this important health area.”

Dr Shaw said that medicines are just one component of the treatment options available to those seeking help to manage their pain.

“Medicine is one of the treatment options available for those living with chronic pain.  Treatment options should always be discussed with a doctor and medicines used wisely according to best practice.”

There are a number of new medicines in the research and development pipeline that offer hope to those living with pain.  A survey of global biopharmaceutical and research companies in 2011 reported 67 medicines in development for rheumatoid arthritis, 23 for osteoporosis, and 19 for lupus, as well as medicines in development for pain resulting from conditions such as chronic pain syndrome (Fibromyalgia) and migraine.

“The medicines industry is working hard to discover, develop and bring out new medicines to treat pain”, Dr Shaw said.

“We are proud to play a role in the effort to improve the quality of life of those living with chronic pain which also brings relief for their families.”

-ENDS-

Contact Person:

Julie Johnson

Public Affairs Officer, Medicines Australia

Ph: 0422 141 784