Medicines Australia has signed a Strategic Agreement with the Australian Government that will support ongoing access to the latest innovative medicines for patients, significant savings to taxpayers and provide much needed stability for the innovative medicines industry.
The five year agreement will deliver $1.8 billion in savings that will be reinvested into the supply of medicines, including more breakthrough therapies on the Pharmaceutical Benefits Scheme (PBS). The Agreement also incorporates significant process improvements to update the PBS, as well as measures that will help to accelerate access to the latest medicines for Australian patients.
The changes will see single brand (innovative) medicines reduced in price after being on the PBS for 5, 10 and 15 years respectively. On entry of brand competition, there will be an increase from the current 16% reduction to 25%.