Today’s release of the Federal Government’s Health Technology Assessment Review highlights some key future developments in the way governments assess new prescription medicines and other medical technologies for subsidy.

“There are some recommendations in the report that will benefit government, industry and ultimately patients,” Medicines Australia chief executive Dr Brendan Shaw said.

“By and large, the experiment of a joint review by the Departments of Health and Ageing, and Finance and Deregulation, under the Better Regulation Ministerial Partnerships initiative, has worked well.

“A number of the review’s recommendations reflect emerging international best practice in the way new health technologies are assessed. They will improve the way the health system provides services to patients while reducing regulatory barriers for industry.

“Greater coordination between the evaluation processes for medicines, devices and testing is long overdue and is to be encouraged. For example, it should help avoid the situation where a new medicine has been approved for subsidy but patients find the relevant diagnostic test required to determine their eligibility for that medicine has not been approved.

“The recommendation to allow concurrent, rather than sequential, regulatory and reimbursement assessment processes is a sensible regulatory reform that has real potential to reduce the time patients must wait for new treatments to become available.

“Another key recommendation is that the Government explore ways to subsidise a new technology on a conditional or interim basis while further evidence is being collected.

These types of interim listing arrangements are starting to be used for subsidising new complex medicines overseas and can improve patient access to such therapies.

“Countries such as the United Kingdom, Denmark and France are looking at these arrangements and Australia should do the same.

“Similarly, the recommendations to explore the use of data linkage to assess the costs and benefits of a medical technology are welcome and will lead to better outcomes for patients. This is very much the way of the future.

“One area where more could be done is in patient and community interaction with the assessment system. There are a number of actions here the Review has identified that deserve further consideration because patients must be more engaged in this process.”

Medicines Australia’s submission to the HTA Review can be found here

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Contact Person:

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

A report by the United Kingdoms’ Department of Health has found that Australia has amongst the lowest prices for new medicines in the developed world.

The report, released at the end of last year, compares the prices of new prescription medicines in the UK against 13 other developed countries, including Australia.

“This report proves that the prices Australia pays for new medicines are amongst the lowest in the developed world,” said Dr Brendan Shaw, Chief Executive of Medicines Australia.

“The report shows that out of 13 countries in 2009, Australia had the lowest prices for medicines made by innovative pharmaceutical companies.”

“This research supports various other Australian and international studies which show that by international standards the price of new medicines in Australia is low.”

The UK Department of Health’s report can be found at:

http://www.dh.gov.uk

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Contact Person:

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

The PricewaterhouseCoopers report on reform of the Pharmaceutical Benefits Scheme released by the Government last night is fresh evidence that the PBS is sustainable and that the reforms are working.

The report finds that the PBS will grow by just 5.99 per cent a year out to 2018.

Medicines Australia chief executive Dr Brendan Shaw said: “This report provides further evidence that the PBS is sustainable and that the are working. Last week’s Intergenerational Report reached the same conclusion. This is another vote of confidence for the PBS.

“A key point of these reforms was to ensure taxpayers didn’t pay over the odds for older, off-patent medicines. Price cuts over the next couple of years will significantly lower prices for those older drugs.

“But for new drugs, Australia already pays the lowest prices in the developed world. Effectively, Australian taxpayers are getting new medicines 20 per cent cheaper compared to the OECD average.

“Australia will certainly face higher health costs as the population ages, but the PBS has an important role in offsetting those costs. The PBS is actually part of the solution.

“The PBS is not only providing Australian patients with universal access to the best medicines when they are needed, it is also offsetting other healthcare costs by keeping patients out of the hospital system.

“The conclusions of the Intergenerational Report last week point to a sustainable PBS that will not grow as a proportion of GDP at least out to 2020

“The IGR Report corroborated separate studies commissioned by Medicines Australia and by the Pharmacy Guild which both arrive at the same conclusion that the PBS is in good shape, is well managed and is sustainable into the future.

“Price cuts from PBS reforms will deliver $6 billion in savings to the public purse over 10 years. That is $3 billion more than what the Government had banked on. Effectively, the industry has delivered taxpayers an unexpected windfall of $3 billion.

“Of course the PBS will continue to grow. Patients will welcome ongoing investment in a program that ensures they will have access to effective medicines when they are needed.

“However, we recognise that growth needs to be managed and I urge the Government to work with the industry to arrive at a shared understanding of projected growth and an agreed view of what manageable growth might be.”

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Contact Person:

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

Ongoing investment in a sustainable and cost-effective Pharmaceutical Benefits Scheme will help the Government achieve its goal of lifting productivity, Medicines Australia chief executive Dr Brendan Shaw said today.

Dr Shaw was responding to today’s launch by the Treasurer of the Third Intergenerational Report.

“We all recognise the very real challenges of population growth and ageing,” Dr Shaw said. “The onus is on the healthcare sector and the Government to work together towards a solution that allows Australia to manage the economics of an ageing population.

“The Government has rightly identified productivity growth as the key to managing an ageing population.

“Medicines can make an important contribution to increased workforce participation and productivity. Today, pharmaceutical interventions are helping keep people out of hospital and in the workforce, or helping them get back to work after illness more quickly.

“Investment in pharmaceuticals will help drive long-term economic growth. It is an investment in human capital in the same way as expenditure in education.”

Dr Shaw said Australia’s pharmaceuticals industry was already making a major contribution towards ensuring the PBS remained sustainable.

“The major reforms of 2007 that were designed to ensure a sustainable PBS are working,” Dr Shaw said.

“Those price cuts will deliver the Australian taxpayers a $6 billion efficiency dividend over 10 years.

“In relative terms Australia is already paying the lowest prices for new medicines of any OECD country. Effectively, taxpayers are getting new medicines at a 20 per cent discount to the OECD standard.

“It’s certainly important for the PBS to be sustainable, but pricing models must be sustainable for the companies who research and develop these new therapies.”

Dr Shaw also acknowledged the importance of value for money in the health system highlighted in the IGR.

“It is critical that all areas of health expenditure are subjected to a rigorous cost-effectiveness analysis to ensure taxpayers know that they are getting value for money from every health dollar,” Dr Shaw said.

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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 congratulated the Government on its determination to introduce secure electronic health records for Australian patients.

Responding to an announcement by the Minister for Health and Ageing Nicola Roxon MP that the e-health rollout will begin mid-2010, Dr Shaw said the move to electronic records would ensure patients had access to more timely and better informed medical treatment.

“The Government is to be commended for pursuing an e-health agenda with such focus and determination,” Dr Shaw said.

“An electronic health record will help ensure doctors’ prescribing decisions are fully informed by appropriate patient health data. That is critical from a Quality Use of Medicines perspective. It has the potential to deliver an enormous benefit to patients

“A national e-health record will also provide an important opportunity to deliver a significant competitive advantage to Australia’s extensive clinical trial capability.

“There is a real opportunity to ensure an e-health record system provides remote access to the medical records of trial participants in Australia where the appropriate consent has been given.

“Implementation of an electronic health record is something Medicines Australia has argued for vigorously for some time and I am delighted that the Government continues to drive this important initiative forward.

“Medicines Australia stands ready to work with Federal and State and Governments during the consultation period as we head towards full implementation.”

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Contact Person:

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

Government investment in the healthcare system will improve workforce participation and productivity and help drive long-term economic growth, Medicines Australia has told the Government ahead of the third Intergenerational Report, due out this year.

The next IGR should model the economic benefits of medicines to productivity as well as other areas of the health budget such as hospitals, doctors and nursing homes, Medicines Australia argues in a submission to Government titled The role of pharmaceuticals in an ageing population.

“Medicines are a vital tool for ensuring Australia’s population remains healthy and productive as it ages,” Medicines Australia said.

“How the Government manages Australia’s use of medicines in the future and the Pharmaceutical Benefits Scheme will be a key determinant of our future social and economic prosperity.

“Future considerations of pharmaceutical policy reform should be couched in the context of new medicines being critical to ensuring long-term productivity and healthy ageing in Australia.

“While unmanaged spending runs the risk of causing fiscal problems for future generations, too little spending runs the risk of Australia’s population being less healthy and less productive as it ages.

“Spending on medicines provides social and economic benefits that need to be recognised in any discussion about future policy and spending decisions.”

Medicines Australia chief executive Dr Brendan Shaw urged the Rudd Government to consider carefully the productivity benefit in all policy decisions about the level and composition of healthcare spending.

“The promising new medicines currently in development in cancer, arthritis, Alzheimer’s disease, asthma, heart disease, obesity and other areas can play a key role in ensuring a healthy and productive ageing population in the future,” Dr Shaw said.

“But we must be careful to ensure that the PBS is not compromised to such an extent that it cannot accommodate funding for these new therapies in the future.

“We are at a critical juncture in health policy. The Rudd Government is correct in saying that we have a unique opportunity to reform the health system, but we must keep one eye on what is best for Australia’s long-term productivity and efficiency.”

Medicines Australia’s submission is available at: http://www.medicinesaustralia.com.au/pages/page97.asp

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Contact Person:

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

The Board of Medicines Australia today announced its appointment of Dr Brendan Shaw as the organisation’s new Chief Executive.

“After a thorough process the Board and I are delighted to appoint Dr Shaw to this important position within the discovery-based pharmaceutical industry in Australia,” the Chairman of Medicines Australia, Will Delaat said today.

“He brings a wealth of experience to navigate an ever-changing bio-pharmaceutical industry landscape and a challenging health and industry policy environment.”

“Over the last six years he has earned the respect not only of the Board and member companies but also Medicines Australia’s staff and its key external stakeholders.”

“Brendan’s track record is impressive. He was instrumental in guiding the industry through reforms to the Pharmaceutical Benefits Scheme, the Pharmaceutical Benefits Advisory Committee processes and the Therapeutic Goods Administration. He has driven Medicines Australia’s research program, developed Joint Medicines Policy Conferences with the Australian Government, and Medicines Australia’s contribution to the international debate on health technology assessment.”

“Our industry brings innovative new medicines to the Australian public. We look forward to working with the new Chief Executive to ensure a viable operating environment which promotes R&D investment and boosts exports of vaccines, pharmaceuticals and their related services.”

For the past six years Dr Shaw led the Health Policy and Research function at Medicines Australia, representing the industry on the Pharmaceutical Benefits Pricing Authority, the Access to Medicines Working Group, and for two years was the industry member of the Economic Sub-Committee of the Pharmaceutical Benefits Advisory Committee. He has been Acting Chief Executive for the past three months.

Prior to taking up his appointment with Medicines Australia in January 2004, Dr Shaw was adviser to the then Shadow Minister for Innovation, Industry and Trade, Dr Craig Emerson MP. Dr Shaw has previously worked in academia, consulting and the Australian Government in the areas of economic development, innovation, industry analysis and public policy. He has an honours degree in economics from the University of Queensland and a PhD in management from Monash University.

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Contact Person:

Donna Edman
Executive Director, Public Affairs
Phone: 0419 850 174
Email: Donna.Edman@medicinesaustralia.com.au

Australia’s pharmaceutical industry has overtaken road vehicles to become the nation’s largest hi-tech exporter according to a new industry “Facts Book” (see backgrounder).

The Medicines Australia Facts Book contains key industry statistics and other information. It highlights the contribution of the local pharmaceutical industry to the health and economic wellbeing of Australians.

Medicines Australia acting chief executive Dr Brendan Shaw said the information, compiled by Medicines Australia, demonstrates the value of Australia’s new largest hi-tech exporter.

“Australians can be very proud that fellow-Aussies have been working relentlessly at the lab bench, in hospitals and factories and in many other environments to bring new medicines and vaccines to patients both in Australia and overseas,” Dr Shaw said.

“This is a real export success story. Every day, these new medicines are saving, improving and extending lives of ordinary Australians and patients in other countries.

“Pharmaceutical companies have a proud tradition in Australia of making a difference and those companies are now exporting more goods around the world than any other hi-tech industries, including the car industry, scientific and medical equipment and the wine industry.

“People often forget where the new medicines and vaccines that treat and prevent their illnesses come from. Without the pharmaceutical industry, the medicines and vaccines that people take for granted would not be available today.

“The Facts Book is a timely reminder of the importance the pharmaceutical industry has to the welfare of Australians, not only as a source of new therapies for treating illness, but also as an employer, an exporter and an innovative industry for Australia.”

Four key facts you may not know about Australia’s pharmaceutical industry:

• Local pharmaceutical companies contribute $7 billion a year to Australia’s economy.
• The Australian pharmaceutical industry exports $4 billion a year to countries like South Africa, New Zealand, Taiwan, Korea and Thailand and in 2008-09 overtook road vehicles as Australia’s largest hi-tech export industry.
• In Australia the pharmaceutical industry is one of our most important R&D manufacturing industries, investing $860 million in R&D each year.
• Australian Governments spend less of their health budget on pharmaceuticals than many other OECD countries and have done so since the early 1990s.

The Medicines Australia Facts Book is available here

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Backgrounder

Contact Person:

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

Consumers and the community should be more involved in the Pharmaceutical Benefits Scheme listing process that determines which new medicines are subsidised by the Government, Medicines Australia acting chief executive Dr Brendan Shaw said today.

Dr Shaw was responding to a new report released this week by international consulting firm Deloitte – Enhancing Consumer Involvement in Medicines Health Technology Assessment. The report was commissioned by pharmaceutical company Eli Lilly.

“Medicines Australia supports greater community involvement in the Government’s process for evaluating medicines for the Pharmaceutical Benefits Scheme,” Dr Shaw said.

“Australia must continue to work towards greater consumer and community involvement in the evaluation process, in line with international best practice.

“A number of developed countries have moved to better involve patient, carer and community evidence in the development of national medicines policies and the appraisal of new products.”

The report finds that Australian consumers and the community have less involvement in the process than countries such as England, Canada and Scotland.

“This timely report has a number of important recommendations about how community and patient input into the health technology assessment process can occur and be improved,” Dr Shaw said.

“We are working with the Federal Government and consumer groups to help position Australia at the vanguard of health technology assessment globally.”

The issues raised in the Deloitte report are among those canvassed by Medicines Australia in its submission to the Federal Government’s Health Technology Assessment Review currently underway.

Medicines Australia and the Government agreed to explore ways to enhance patient involvement in the PBS listing process as an outcome of their Joint Medicines Policy Conference in 2008.

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Contact Person:

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

Johnny Sollitt-Davis
Deloitte, Communications Manager
Ph: 0407 269 305

Australian pharmaceutical companies are working closely with the Federal Government to ensure adequate supply of the normal seasonal influenza vaccine.

Medicines Australia members are also manufacturing vaccines and providing approved anti-viral therapies for swine flu, where required.

Australian companies are also contributing to the global response by providing vaccine technology as well as anti-viral medicines.

Medicines Australia represents Australian pharmaceutical companies on the Government’s Health Infrastructure Assurance Advisory Group, whose primary role is to highlight specific issues that impact upon the safety and security of the health of the community, and to develop strategies for business continuity in the event of a health emergency.

Medicines Australia member companies stand ready to provide further assistance to the Australian Government on request.

The following website can provide more information about the current H1N1 Swine Flu Pandemic:

• Australian Department of Health
• World Health Organisation
• Trusted Information Sharing Network

Contact Person:

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