The pharmaceutical industry in Australia is facing a crisis, with patients missing out on life-changing treatments due to a complex and lengthy approvals process. This is despite the fact that only a quarter of new medicines launched globally in the last decade have been subsidised in Australia. The situation is particularly dire for those with rare diseases, such as Tina Powney, who has lived with IPAH for 26 years and has had to endure a constant battle for access to essential medication. The issue is further exacerbated by the Trump administration's global pricing pressures, which are pushing drug companies to avoid launching their products in smaller and lower-priced markets, such as Australia. This has led to a situation where patients are missing out on treatments that are already helping people elsewhere, and the industry is calling for urgent reform to the Pharmaceutical Benefits Scheme (PBS). The current process for approving and subsidising drugs is slow and costly, with drug companies and the government going back and forth gathering sufficient evidence, sometimes taking years. This is despite the fact that the Australian government negotiates cheaper prices by buying medicines in bulk, but the method for assessing cost-effectiveness means a new medicine cannot be more expensive than its lowest-priced competitor, unless it is proven to be significantly safer or better. This has led to long delays in approvals, with the likelihood of a new medicine being reimbursed in Australia within two years of approval in the US dropping from 20 to 10 per cent since 2015-16. The situation is further complicated by the fact that the Trump administration is trying to bring medicine prices down in the US with a "most favoured nation" policy, which pushes drug companies to sell to the US at the lowest prices they sell at overseas. This raises a deeper question about the future of the pharmaceutical industry in Australia, and the role of global pricing pressures in shaping access to essential treatments. In my opinion, the current situation is a stark reminder of the need for urgent reform to the PBS, and the importance of ensuring that patients have access to the latest and most effective treatments. It is also a call to action for the government to address the complex and lengthy approvals process, and to work with the pharmaceutical industry to find a solution that benefits both patients and the industry. The future of healthcare in Australia depends on it.
