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News Release
12 December 2011
A sustainable PBS must be the priority for new Health Minister says Generic Medicines sector
Ensuring the Pharmaceutical Benefits Scheme (PBS) is sustainable and medicines remain affordable and accessible to all Australians regardless of where they live or what their socio economic background is must be a priority for the new Minister for Health, said the peak body for the generic medicines sector in Australia.
Generic Medicines Industry Association (GMiA) today welcomed Tanya Plibersek to her new Cabinet role.
“We congratulate Ms Plibersek and welcome her as our new Minister for Health. Our members are looking forward to a productive and positive working relationship,” CEO of the GMiA, Ms Kate Lynch said today.
Ms Lynch recommends a key focus for the new Minister for Health should be to work with the generic medicines sector to help return signficant savings to the economy without cutting into the PBS.
“Every time a consumer chooses a follow-on generic medicine, there are substantial benefits to national savings,” Ms Lynch said.
GMiA has analysed PBS expenditure from April 2005 to April 2009. The presence of a generics sector has saved the PBS at least $1.4 billion (Government contribution) over this 4-year period. Further, savings stemming from the presence of the generic medicines sector are growing over time.
“GMiA understands that the Government has set itself a strict target aimed at returning the Budget to surplus by 2012-13. The generic medicines sector is in a position to help the Government meet this target through the PBS,” said Ms Lynch.
Ms Lynch called on the incoming Minister to bed down the existing reforms first before embarking on any further changes to the PBS.
“The PBS reforms announced in the last Budget are yet to play out,” Ms Lynch said. “On 1 April 2012 generic medicines on the PBS will undergo an overnight average minimum 23% price reduction. This is the largest single price cut in the PBS history. The impact of this reform will be extensive and will deliver substantial savings to government.”
‘We need to ensure the PBS remains sustainable and affordable. Supporting the uptake of follow-on generic medicines in Australia provides a three way win for the patient, the taxpayer and the economy.”
GMiA also congratulated other incoming Ministers to its sector Greg Combet (Industry and Innovation) and Chris Evans (Skills, Science and Research). The No # 1 Australian manufacturing export industry for the past three years, the pharmaceutical industry employs more than 14,000 people domestically, and now contributes approximately $4 billion to the national trade balance. GMiA welcomed having these portfolios represented at the Cabinet table.
Ms Lynch paid tribute to the outgoing Minister, Ms Nicola Roxon, describing her commitment to health reform as signficant and unwaivering. ENDS
For all media enquiries please call Ms Kate Lynch CEO of GMiA on 0432 500 308
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.