A new report released by Lateral Economics underscores the social and economic value of medical R&D, Medicines Australia chief executive Dr Brendan Shaw said today.

“This report sets out compelling evidence of the enormous return that Australia derives from investing in medical research,” Dr Shaw said.

“It highlights the importance of a stable, long-term R&D policy environment. We simply can’t afford Australia’s R&D investment commitment to be compromised by short-term fiscal challenges.

“We have some of the world’s best medical research capability and infrastructure in Australia and that’s an advantage we must capitalise on. It puts us in a great position to reap substantial long-term social and economic returns.”

The Economic Value of Australia’s Investment in Health and Medical Research was commissioned by Research Australia and launched today at AusBiotech 2010.

The medicines industry is a major player in Australia’s medical R&D sector, both directly and in collaboration with hospitals, universities and other research institutions.

ABS figures released in September showed that Australia’s medicines industry invested more than $1.023 billion in R&D in 2008-09, up $94 million or 10 per cent from the previous year.

“Pharmaceutical R&D is one of the great success stories of medical research in Australia,” Dr Shaw said.

“We must do all that we can to ensure that we keep more of our top research scientists engaged in Australian R&D and attract greater funding to our universities and other research institutions.

“The Lateral Economics report reasserts Australia’s reputation as a global hub for R&D excellence and sends a powerful signal to policymakers that R&D is worth supporting.”

“Ensuring an efficient regulatory environment for clinical research and implementing the R&D tax credit system are two examples of policy settings that would greatly support Australian R&D.”

The medicines industry conducts more than 800 clinical trials in Australia each year. In 2009 more than 18,000 Australians participated in clinical trials supported by the medicines industry in this country.

The Lateral Economics report is available at http://researchaustralia.org

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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 welcomed the inclusion of the National Health Amendment (Pharmaceuticals Benefits Scheme) Bill 2010 on the first bills list of the 43rd Parliament.

The legislation will enable the implementation of $1.86 billion in savings from the PBS.

Dr Shaw urged all political parties to support the Bill and ensure its enactment at the earliest opportunity.

“This legislation is supported by the 50 member companies of Medicines Australia who account for 86 per cent of the PBS,” Dr Shaw said.

“This is a common-sense Bill that will benefit taxpayers, patients and industry. It will ensure a stable and sustainable PBS and it merits the support of the Parliament.

“These reforms will reduce the price the Government plays for older, off-patent medicines. That will reduce the prices patients pay by as much as $5 per script each month.

“This legislation will ensure Australians will pay less for commonly used medicines to treat heart disease, asthma, depression, cholesterol, rheumatoid arthritis and other conditions.”

While the Australian Government pays 20 per cent less than the OECD average for new, patented medicines, the prices it pays for older, off-patent medicines are high by international standards.

“Driving savings from a competitive generics market is the key to ensuring the PBS is sustainable in the long-term,” Dr Shaw said.

The National Health Amendment (Pharmaceuticals Benefits Scheme) Bill 2010 is part of a broader package of reforms that will ensure a more efficient PBS for all Australians.

“These reforms, which are currently being implemented by the Department of Health and Ageing, in consultation with Medicines Australia, will reduce the time it takes for new medicines to get on to the PBS,” Dr Shaw said.

“As part of the medicines agreement signed with the Commonwealth earlier this year, the processes of registering a new medicine with the TGA, and listing it on the PBS will be able to run concurrently rather than sequentially. That should mean quicker access to medicines for ordinary Australian patients, and potentially saving lives.”

The agreement also includes a commitment by the Government to ensure medicines requiring Cabinet approval prior to PBS listing are reviewed by the Cabinet within six months of being recommended for listing by the PBAC.

“This is an agreement that delivers Australians a much better PBS,” Dr Shaw said.

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Contact Person:

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

The R&D tax incentive legislation reintroduced to Parliament today has the potential to make Australia more globally competitive as an investment location for pharmaceutical R&D, Medicines Australia chief executive Dr Brendan Shaw said.

“This legislation provides both local and international companies with an additional incentive to invest in R&D in Australia,” Dr Shaw said. “It is an extremely positive and beneficial measure and I call on all parliamentarians to support it.

“The bottom line is that this legislation will reduce the net cost of undertaking R&D in Australia by 10 per cent and make us more globally competitive.

“This could be a massive opportunity for the pharmaceutical and biotech industries in this country.

“The competition for R&D investment from countries such as China, India and Singapore is extremely fierce. However, with the right policy settings we have a precious opportunity to grow our R&D industry and keep innovative R&D in Australia.

“That would ensure we keep more of our top research scientists engaged in Australian R&D and attract greater investment to our universities and other research institutions.

“It is very much in the national interest that we seize this opportunity.”

Data released last week by the Australian Bureau of Statistics showed that the medicines industry is Australia’s largest manufacturing investor in R&D, attracting $1.023 billion in R&D investment in 2008-09.

“The tax credit will greatly assist the industry to sustain and grow its R&D investment in Australia”, Dr Shaw said.

The medicines industry conducts more than 800 clinical trials in Australia each year. In 2009 more than 18,000 Australians participated in clinical trials supported by the medicines industry in this country.

“This tax credit will help keep Australia at the forefront of medical research globally and will help secure high-value research jobs,” Dr Shaw said.

“It has the potential to deliver significant benefits to the Australian economy.”

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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 first time, according to the annual Australian Bureau of Statistics business expenditure on R&D figures released today.

The ABS report shows that the medicines industry attracted $1.023 billion in R&D investment in 2008-09, up $94 million or 10 per cent from the previous year.

The Australian 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 latest ABS data on R&D investment underscored the value of the medicines industry to Australia’s economy.

“These latest figures confirm Australia’s reputation as a global hub for R&D excellence and send a powerful signal to policymakers that R&D is worth supporting.”

“Australia currently boasts some of the best research capability and infrastructure in the world. That is an advantage we must capitalise on.”

“The figures show that developing new medicines are just as important to Australia’s innovative economy as developing new financial products, new cars and new ways of mining.”

The medicines industry conducts more than 800 clinical trials in Australia each year. In 2009 more than 18,000 Australians participated in clinical trials supported by the medicines industry in this country.

Dr Shaw said that Australia needed to remain internationally competitive in order to stay at the forefront of medical research globally.

“The competition for R&D investment from countries such as China, India and Singapore is extremely fierce,” Dr Shaw said.

“However, with the right policy settings we have a precious opportunity to grow our R&D industry and to keep innovative R&D in Australia.

“That would ensure we keep more of our top research scientists engaged in Australian R&D and attract greater investment to our universities and other research institutions.

“It is extremely important that the Government releases and implements the findings of the Clinical Trials Action Group and improves the regulatory environment for trials in Australia if we are to keep and attract greater investment.

“We also need the R&D tax credit legislation to be passed by the Parliament at the earliest opportunity. The tax credit will make Australia more competitive because it effectively lowers the cost of conducting R&D by 10 per cent.”

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Contact Person:

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

Medicines Australia chief executive Dr Brendan Shaw has welcomed the formation of a new Federal Government and said Australia’s medicines industry looks forward to working constructively with all political parties in the new Parliament.

“To their credit, parliamentarians from all sides have managed the rare occurrence of a hung Parliament very well to date, but with the formation of the new Government there is now a need to press on with some key medicines and industry policy issues.

“Medicines Australia will continue to work with all political parties in a positive and multi-partisan manner to assist in the development of public policy in key health and industry areas.

“The Australian medicines industry welcomes the at least in-principle expressions of support for the Memorandum of Understanding from the major political parties before the election and we hope for a speedy passage of the legislation to implement savings.

“The MoU provides a predictable policy environment for the Australian medicines industry, a fiscally sustainable PBS for the Government, and lower prices for medicines and improved access to new medicines for Australian patients.

“The medicines industry supports the proposed R&D tax credit reforms from the last Parliament and looks forward to the new system being introduced as soon as possible so the industry can sustain and grow its $1 billion worth of investment in R&D, including clinical trials, in Australia each year.

“Medicines Australia also calls on the Government to finalise its Clinical Trials Action Group report so we can work together to improve the regulatory environment for conducting clinical trials in Australia and make this country more globally competitive.

“And importantly there are a number of medicines awaiting listing on the PBS, both in Cabinet and in the bureaucracy, where the process has been delayed due to the recent election and accompanying caretaker conventions.

“With the end of the caretaker conventions, we encourage a quick resolution of those listings so they can be made available to Australian patients through the PBS.

“We look forward to working with the new Government, the Opposition, the Greens and independent MPs and Senators in the new Parliament.”

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Contact Person:

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

Governments around the world must work with pharmaceutical companies to create the right policy environment for research into urgently-needed new antibiotics, Medicines Australia chief executive Dr Brendan Shaw said today.

Last month the World Health Organisation issued a new warning about the global spread of multidrug-resistant bacteria.

Meanwhile, medical journal The Lancet has identified a new gene that enables some types of bacteria to be resistant to almost all antibiotics.

“This has serious implications for Australia, where 7000 people die each year from drug-resistant bacteria such as golden staph infections,” Dr Shaw said. “That’s almost 20 Australians a day.

“Governments must start giving serious thought to how they can work with pharmaceutical companies to encourage investment in new antibiotics in response to the growing threat of superbugs.

“The London School of Economics recently highlighted the reasons the pharmaceutical industry is not commercialising enough new antibiotics. They noted several barriers to investment that have been caused by governments in countries like Australia.

“Incentives for commercialising promising technologies are one option to encourage companies to invest more, but incentives are no panacea.

“Other one-off incentives such as extending patent terms, R&D tax credits and commercialisation funds could help in providing financial incentives to commercialise antibiotics after they’ve proved to be effective.

“Governments should also look carefully at how they assess the prices they are prepared to pay for new antibiotics.

“Comparing new medicines against cheap, old generics can lead to industry avoiding further investment in a therapeutic area such as antibiotics and investing instead in other areas where the return is greater.

“In cancer, governments have been prepared to pay for new treatments as they are developed. The result is that today the industry has over 800 new cancer medicines in development compared with 83 antibiotics.

“It is alarming that the current generation of Australians has to make do with the same antibiotics our parents used 30 years ago. Patients deserve better than that.”

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Contact Person:

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

A $15,000 post-Honours vaccine research scholarship sponsored by Medicines Australia has been won by University of NSW medical student Dr Holly Seale.

Dr Seale will use the scholarship to research knowledge of the human papillomavirus (HPV) and attitudes towards HPV immunisation among young people with poor immune systems and their carers.

Medicines Australia chief executive Dr Brendan Shaw said the aim of the scholarship was to advance research in an arena of public health that brings an enormous health benefit to all Australians.

“Vaccines are a cornerstone of preventative health,” Dr Shaw said. “They are made available to the community through the research, effort and investment of the Australian medicines industry. Our industry is very proud to support Australian science.

“The HPV vaccine, developed by Professor Ian Frazer, is a beacon of Australian innovation that is changing the disease profile of cervical cancer across the western world and increasingly in developing countries.

“In Australia over the past 30 years we have seen numerous vaccines have a demonstrably positive impact on human health outcomes.

“The number of reported cases of measles, mumps and rubella fell from 2290 to 633 in the decade following the introduction of that vaccine.

“Between 1991 and 2007 the number of reported cases of Hib B dropped from 460 to 17.

“Between 2002 and 2007 the number of reported cases of pneumococcal disease dropped from 2451 to 1488. In the same period the number of cases of meningococcal dropped from 490 to 305.

“In 2009 H1N1 vaccines were a key weapon against the threat of a global flu pandemic.”

The vaccine scholarship to Dr Seale is provided by Medicines Australia and awarded by the Public Health Association of Australia.

Dr Seale will submit her research to the editors of the Australasian and New Zealand Journal of Public Health and will present at a Public Health Association of Australia conference in 2012.

Medicines Australia member companies which manufacture vaccines include: CSL, GSK, Wyeth, sanofi aventis, Abbott, Baxter and Novartis.

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Contact Person:

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

An agreement between Medicines Australia and the Commonwealth Government will reduce the price of hundreds of medicines on the Pharmaceutical Benefits Scheme, Medicines Australia told a Senate inquiry today.

The agreement, announced in the May Budget, will deliver PBS savings to taxpayers worth $1.86 billion over five years. The savings will be realised by cuts in the price the Federal Government pays for hundreds of commonly prescribed off-patent medicines. These price cuts will flow to consumers.

The Senate Community Affairs Committee is inquiring into the National Health Amendment Bill, which gives effect to the savings measures in the MoU, and is due to publish its report on Thursday 26 August.

Medicines Australia chief executive Dr Brendan Shaw said the legislation would deliver significant benefit to taxpayers and consumers.

“This agreement gives pricing certainty to Australia’s medicines industry,” Dr Shaw said.

“Importantly, it will also save the taxpayer $1.86 billion and will mean cheaper scripts for patients.

“Hundreds of medicines commonly prescribed to treat high cholesterol, hypertension, asthma, cardiovascular disease, rheumatoid arthritis and depression will become cheaper for patients currently paying the non-concessional rate.

“I welcome the Coalition’s statement yesterday that it would give bipartisan support to the MoU.

“I strongly encourage all parties to work together on the resumption of Parliament to ensure the enabling legislation is enacted as quickly as possible, irrespective of who wins government.”

Medicines Australia member companies supply 86 per cent of medicines to the Pharmaceutical Benefits Scheme.

The submission is available here

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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 announced the 2010 federal election priorities for the Australian medicines industry.

Medicines and the 2010 Federal Election: Supporting Australia’s Health urges all political parties to support three key objectives:

• Provide business certainty for the Australian medicines industry
• Ensure Australian medicines industry innovation remains internationally competitive
• Deliver better access, information and opportunities associated with the PBS listing of medicines.

Dr Shaw said all political parties should endorse these objectives which would help ensure that Australians remain healthy and productive, and that one of Australia’s major industries, worth $18 billion a year, can continue to contribute substantially to the economy.

“I call upon all parties to implement the Memorandum of Understanding between the Commonwealth of Australia and Medicines Australia because it delivers savings to taxpayers, cheaper medicines to patients and a better PBS,” Dr Shaw said.

“The MoU will provide industry with business certainty, ensure patients get medicines, and protect Australian jobs.

“Parties must also support innovation and help keep Australia competitive. The Australian medicines industry’s contribution to the national economy is more than $4 billion in exports, 14,000 employed in skilled jobs, and $1 billion in R&D investment.

“But Australia is facing strong competition from other countries. Protecting intellectual property, passing the R&D tax Bill and making Australia a more attractive destination for clinical trials will make this country more competitive.”

Dr Shaw said the third priority for Australia’s medicines industry was the delivery of better consumer access to medicines.

“Australians should not have to wait three years for a new medicine to be listed on the PBS.

“All parties should support an increase in the administrative threshold at which Federal Cabinet is required to approve a new medicine for listing on the PBS.

“Doubling the threshold from $10 million a year to $20 million would halve the number of new medicines that get delayed by red tape. It could wipe 12 months off the time it takes some important new medicines to become available to patients.”

Medicines and the 2010 Federal Election is available at: www.medicinesaustralia.com.au.

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Contact Person:

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

Export figures for the June quarter published this week by the Australian Bureau of Statistics reveal that the pharmaceutical industry remains Australia’s most valuable hitechnology exporter.

Medicines Australia chief executive Dr Brendan Shaw said pharmaceutical and medicinal exports for 2009-10 totalled $4.12 billion, up two per cent from $4.02 billion in the previous year.

“These numbers underline the significant contribution Australia’s medicines industry is making to the economy,” Dr Shaw said.

“The industry has continued to export more goods around the world than any other hitech industries, including the car industry, the wine industry and scientific and medical equipment.

“Australia’s overall exports fell 11 per cent in the 12 months to June 2010 compared with the previous year.

“Pharmaceuticals were one of the very few manufacturing industries to have actually posted a growth in a very challenging global market. Most other manufactured exports declined during this time.

“This confirms the pharmaceutical sector as one of the unsung heroes of Australian industry. It is a real export success story.

“It is precisely these sorts of results that show why business certainty and a predictable policy environment are so important to the Australian medicines industry.”

Asian countries accounted for approximately 41 per cent of pharmaceutical exports in 2009-10. South Africa, Europe and New Zealand were the other major export markets.

Dr Shaw said export earnings for the Australian medicines industry had grown 800 per cent since 1990.

Australia’s medicines industry employs 14,000 people.

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 2010

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Contact Person:

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