APMA Response To Australian Industry Inquiry

The Australian Pharmaceutical Manufacturers Association has welcomed the release of a Draft Report on the pharmaceutical industry, published last year (Marketletters January 29 and February 5) by the federal government's advisory Industry Commission, and last month the APMA issued its more considered response to this.

In the APMA's view, the Draft indicates the benefits to be derived by Australians from a viable pharmaceutical industry. Moreover, it says the Draft recognizes administrative deficiencies in the operation of the Factor(f) Scheme and recommends that in its current form the Scheme should not be continued beyond 1999. The Draft also acknowledges the importance of a consistent, positive environment to ensure the continuing viability and growth of Australia's drug industry. The APMA went on to make the following points:

Pricing. The Draft noted that government controls of drug prices through the Pharmaceutical Benefits Scheme "appear to be depressing pharmaceutical activity, and impeding industry development." The APMA says that a recent study has shown that 87% of Australia's leading products fall below the world average price.