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\n Australia exported more than $2 billion worth of local medicines to the US in 2024.
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\n News<\/p>\n
\n Australian Government says speeding up approvals process is on the agenda as US tariff threats and manufacturing concerns reach new heights.
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\n Australia exported more than $2 billion worth of local medicines to the US in 2024.
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newsGP weekly poll
\n United States President Donald Trump has been threatening to impose tariffs on imports since his election campaign, including on Australian-produced pharmaceuticals. But the threat this week reached new heights, with the leader saying imposed tariffs could be up to 250%.
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\nThe prospect has raised alarm bells for Australian pharmaceutical companies, given more than $2 billion<\/a> worth of local medicines were exported to the US last year alone.
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\nIt has led to the Federal Government speaking out on the potential of speeding up the medicine approvals process, with US manufacturers taking aim at the length of time Australia currently takes to do so.
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\nFederal Minister for Health and Ageing Mark Butler admitted the proposed tariffs are a \u2018very big threat\u2019 to Australia.
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\n\u2018It\u2019s one we\u2019re working very hard to engage with the Americans on,\u2019 he said on Thursday<\/a>.
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\n\u2018The numbers are jumping around \u2026 They were 200% a couple of weeks ago and now they\u2019re 250% potentially. They are very, very big tariffs.
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\n\u2018We are making the case very strongly, but I\u2019m not going to pretend that the US Administration doesn\u2019t appear to be pretty serious about this.\u2019
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\nIf the tariffs come into play, they are expected to have the biggest impact on Melbourne-based CSL, which produces the majority of Australia\u2019s medical products that are exported to the US.
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\nThe prospect of the tariffs has also raised further concerns about the future of the Pharmaceutical Benefits Scheme<\/a> (PBS) and whether it could result in an increase in prices Australians pay for medicines listed under the scheme.
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\nWith approximately 67% of Australians<\/a> relying on the PBS, Professor Mark Morgan, Chair of the RACGP Expert Committee \u2013 Quality Care, said it is important Australia doesn\u2019t go the way of the US.
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\n\u2018In the US, patients end up paying significantly more for medicines \u2013 which is a tax on being unwell,\u2019 he told newsGP.
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\n\u2018People have to make difficult choices about which medicines they can afford to buy.
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\n\u2018Nobody wants to see Australian patients needing to take out mortgages to pay for essential medicines. Nobody wants to see Australians making difficult decisions between food and medicines.\u2019
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\nHowever, Prime Minister Anthony Albanese has reassured Australians that the PBS, in its current form, is here to stay.
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\n\u2018We support the PBS. It is part of who we are as Australia,\u2019 he said on Thursday<\/a>.
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\n\u2018We\u2019re a sovereign nation; it\u2019s something that has produced massive benefits for Australia.\u2019
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\nMinister Butler shared the sentiment, saying the PBS is \u2018simply not up for negotiation\u2019.
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\n\u2018America exports more pharmaceuticals to Australia than we do to them. They do it on a tariff-free basis,\u2019 he said.
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\n\u2018That served both of our countries very well, and we\u2019ll continue to argue the case for a continuation of free trade in pharmaceuticals.\u2019
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\nHowever, drug prices are not the only concern expressed by US manufacturers, who have also taken issue with the amount of time it takes for the PBS\u2019s medicines approval process.
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\nMedicines Australia shares the concern. It claims once a medicine is approved by the Therapeutic Goods Administration (TGA) it can take up to 22 months<\/a> to be listed on the PBS \u2013 compared to three months in other countries.
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\nIn 2022, Minister Butler commissioned a review into the matter, which saw 50 recommendations handed down last year<\/a>.
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\nThe Minister said speeding up the approvals process is on the agenda, and that he is expecting an interim report in the coming days on how the review\u2019s recommendations can be implemented in a \u2018sensible, sequenced way\u2019.
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\n\u2018I\u2019m very much on the page of getting medicines more quickly into \u2026 our PBS system,\u2019 Minister Butler told the ABC on Thursday.
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\n\u2018I know this is a real priority, obviously for the industry, but perhaps more importantly for patient groups.
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\n\u2018We\u2019re living through this turbocharged period of discovery that\u2019s bringing more and more new medicines. So, making sure we can assess them and approve them very quickly … is something I\u2019ve said is a real priority for us this term.\u2019
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\nIt has been suggested that the move could help improve Australia\u2019s position with the US Government.
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\nHowever, Professor Morgan fears the pressure being exerted by President Trump and US pharmaceutical companies is being fuelled by the desire to have imported medicines on shelves faster by bypassing the rigorous safety protocols Australia has in place.
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\n\u2018Australia could shorten this time frame to give earlier access to new medicines for Australian patients if the TGA and PBAC processes happened in parallel and if additional PBAC bodies were set up. Then both patients and pharmaceutical companies would be better off without any drop in standards,\u2019 he said.
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\n\u2018[But] it is important for Australia to remain independent making these decisions, even if US pharmaceutical giants would rather we allowed all their products to be sold to Australian patients.\u2019
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\nBut with the dual challenges of US disinvestment in research and the destruction of trading relationships Professor Morgan has greater concerns about the long-term value proposition of research and development of pharmaceuticals.
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\n\u2018The rate of advancement of medical science may take a downturn,\u2019 he said.
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\n\u2018We might need to explore funding research and development of low-volume, high-impact pharmaceuticals instead of relying on profit form international sales to recoup the cost.
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\n\u2018This is particularly the case for medicines that will be used in small amounts.\u2019
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\nWith growing media coverage over the prospect of these tariffs being imposed, however, patients who heavily rely on the PBS may become increasingly concerned about the possible impact on access. Professor Morgan said GPs are in a position to reassure patients.
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\n\u2018The Australian Government has publicly said that PBS is not open to negotiation,\u2019 he said.
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\n\u2018We can be reassuring to our patients that medicine availability will not grind to a halt or become more expensive.\u2019
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