|
 |
News Release
17 October 2011
GMiA Chairman comments on PBS cuts and the loss of pharmaceutical manufacturing facilities in Australia
GMiA Chairman, Dr Martin Cross, today confirmed via an opinion article in the Australian Financial Review that the Australian medicines industry faces the threat of demise if the federal government continues to reform the Pharmaceutical Benefits Scheme (PBS) and neglects to recognise the vital importance of this sector.
With the pharmaceutical industry being the leading Australian manufacturing export industry for the past three years, contributing more than $4 billion a year to the trade balance, Dr Cross emphasised the need for a period of stability within the PBS.
With Australia being perfectly placed to help meet the demand for medicines from the aging world population and the rapidly developing Asian middle class, Dr Cross argues that despite this growth potential the continuing reforms of the PBS further threaten to undermine the viability of what is arguably the world’s best medicines reimbursement scheme.
For the past 20 years Australia has lost a large number of pharmaceutical manufacturing facilities with export sales declining by 7% last financial year. In addition the number of local clinical trials is also decreasing.
In contrast to the Australian government, Singapore has invested more than $3.5 billion in biomedical sciences initiatives since 2000, resulting in a doubling of employment to 13,000 and a tripling of manufacturing output to $16.46 billion a year.
With the PBS being the most cost-effective part of the whole health system, producing the best value per health dollar spent, further reforms will ultimately have negative results.
The Generic Medicines Industry Association (GMiA) is the national association representing companies that manufacture, supply and export generic medicines. The generic medicines sector is a high value-add sector delivering significant benefits to the Australian public by way of affordable medicines and high skilled jobs.
Contact: Kate Lynch CEO 0432 500 308