The 2015 PricewaterhouseCoopers survey of the Australian medicines industry provides an important and timely insight into the challenges and opportunities confronting the Australian innovative medicines industry, says Medicines Australia.
The survey, titled Challenges and Change: A report on the Australian Pharmaceutical Industry, provides a snapshot of the health of the local industry and is a rolling scorecard on the economic, regulatory and reimbursement pressures the industry is facing.
Medicines Australia CEO Tim James says, “It’s a time of significant challenges for the local innovative medicines industry.
“The PWC survey shows that our member companies are facing an increasingly difficult reimbursement process, along with the Federal Budget measures, leading to delayed access to some new medicines.”
Key survey findings included:
- 87% have considered not applying for listing on the Pharmaceutical Benefits Scheme;
- 80% of companies felt the PBAC processes have not improved or had deteriorated over the last two years;
- 65% believe TGA processes have not improved or deteriorated;
- 80% expect to use a risk sharing agreement with the federal government over the next two years;
- 89% believe their compliance costs will rise;
- 89% have placed a high priority on strategic alliances and joint ventures; and
- 66% are anticipating future growth.
“It is clear that there is a strong feeling of uncertainty around market access and the current business environment which has been further exacerbated by the recent cuts to the PBS,” James says.
“There needs to be a more stable and predictable policy environment so that innovative medicine companies can make future decisions on a range of investments and product listings to benefit all Australians.”
While the challenges ahead are significant, there are also opportunities, he says.
Many of the surveyed companies have indicated they will be looking for strategic alliances and joint ventures in the next two years which could create opportunities for Australian biotechs, our Universities and our major research centres.
“The innovative, research-based medicines industry can play a key role in delivering a smarter, stronger, healthier Australia,” James says.
“This collaboration and investment could bring enormous benefits to the Australian economy, but to achieve this, our politicians need to help create the conditions that will attract investment, growth and job creation.
“Medicines Australia stands ready to help the Parliament harness this opportunity so that we see a vibrant medicines industry in the future.”