Australian Drug Sector Report: APMA View

The Australian Pharmaceutical Industry Association strongly supports the recommendations of the Industry Commission report on the sector for a review of the Pharmaceutical benefits Scheme listing and pricing process, and the introduction of an optional two-year delay for submission of data after PBS listing (Marketletter January 29).

APMA chief executive Pat Clear told the Marketletter last week that the Association's submission to the Commission had called for: immediate introduction of a new scheme to replace the Factor f scheme; a review of the listing process for medicines on the PBS; and an effective 15-year patent term for drug products, in line with patent protection in the European Union, and the introductions of data exclusivity arrangements.

Noting the Commission's strong criticism of the Factor f scheme, the APMA says that research conducted on its behalf by Price Waterhouse had found a dramatic increase in value-added manufacturing by the industry in Australia over the past four years, and this was due largely to the effects of Factor f. The industry's exports had more than doubled in the four years, and R&D expenditures had risen from A$22 million in 1987-88 to an estimated A$227 million ($167.8 million) in 1995-96, according to Mr Clear.