New report highlights Australian pharma industry downturn

A new report published by Medicines Australia points to the tough business conditions currently confronting the pharmaceutical industry in Australia. The latest Medicines Australia Facts Book, which contains key industry statistics and other information, shows the medicines industry is facing significant challenges.

The Facts Book reveals:

• Medical sales and service income for the medicines industry fell to A$9.718 billion ($10.13 billion) in 2010-11, down from $10.021 billion in 2009-10 – a decline of 3%.
• The number of new medicines listed on the Pharmaceutical Benefits Scheme fell from 22 in 2010-11 to just 15 in 2011-12.
• The number of Australians employed in the medicines industry declined for the fourth consecutive year, to 13,375; since 2006-07 more than 1,300 Australian jobs have been lost from the medicines industry.
• Annual turnover of the Australian medicines industry in 2010-11 grew by just 2%, from A$21.95 billion in 2009-10 to A$22.46 billion.
• Annual investment in pharmaceutical R&D grew by just 0.3% per cent, from A$1.034 billion in 2009-10 to A$1.037 billion.
• Australia’s R&D investment growth between 2005 and 2010 compares poorly with other markets: 42%, compared with 46% in Africa, 112% in Canada, 303% in India and 455% in Japan.
• Company tax rate in Australia remains five percentage points higher than the OECD average.
• Australia remains well below the OECD average total expenditure on health as a proportion of GDP.

Medicines Australia chief executive Brendan Shaw said the report highlighted the impact of a challenging and unpredictable policy environment. “There’s no way to sugar-coat it, 2012 was a tough year for the Australian medicines industry,” he warned.