Medicines Australia Urges Federal Government for Urgent Budget Action on Innovative Medicine Access

Call for Budget Action to Address Access Gap

Medicines Australia has formally urged the Federal Government to allocate significant funding in the upcoming 2026-27 Budget to enhance access to innovative medicines for Australian patients. The industry body emphasized the critical need for increased investment in the Pharmaceutical Benefits Scheme (PBS) and comprehensive reforms to Australia's Health Technology Assessment (HTA) system.

The call comes amidst growing concerns that Australia is falling behind comparable OECD countries in making new and advanced treatments available to its population. Medicines Australia argues that without immediate action, the country's position in global drug launch sequencing will continue to deteriorate.

Australia's Lag in Global Medicine Access

Data presented by Medicines Australia paints a stark picture of the challenges faced by Australian patients. Currently, only approximately 27% of innovative medicines available worldwide are accessible to Australians through the PBS. This places Australia significantly behind many other developed nations, ranking 18th out of 20 comparable OECD countries in terms of access to new medicines.

The delays in listing new medicines on the PBS are substantial. Australians face an average wait of 466 days from regulatory approval to PBS listing. Other reports indicate an average 'patient access gap' of 591 days for novel medicines, with some life-saving drugs waiting over 1,000 days for funding after being recommended by the Pharmaceutical Benefits Advisory Committee (PBAC). This prolonged waiting period means patients are missing out on treatments that could improve health outcomes and quality of life.

Liz de Somer, CEO of Medicines Australia, has previously highlighted the impact of these delays. The organization also warns that rising geopolitical pressures and international reference pricing policies are making Australia a less attractive market for pharmaceutical companies to launch new medicines.

Proposed Reforms and Economic Benefits

To rectify the situation, Medicines Australia has put forward several key recommendations for the 2026-27 Budget:

• Implement HTA Reforms: Immediate implementation of reforms stemming from the HTA Review and the Implementation Advisory Group (IAG) Roadmap.
• Reduce Access Delays: A commitment to reduce the delay between Therapeutic Goods Administration (TGA) registration and PBS listing to six months for most medicines, and to just weeks for vaccines and treatments for ultra-rare diseases.
• Increased Investment: A substantial increase in investment for innovative medicines within the PBS.
• Policy Adjustments: Revision of guidelines for comparator selection and the discount rate utilized by the PBAC.
• Streamlined Assessment: Efforts to streamline the overall assessment process for new medicines.

Medicines Australia emphasizes that timely access to innovative medicines offers broader economic benefits beyond patient outcomes, including improved productivity, reduced hospital costs, and strong returns on public investment.

Broader Context of Medicine Access in Australia

The concerns raised by Medicines Australia are part of a wider discussion about medicine access and supply in Australia. Separate reports indicate that one in four Australians struggle to access medicines, with over 400 medicines currently in shortage. Australia's reliance on imported medications, with 90% of its supply coming from overseas, further exacerbates vulnerabilities in the supply chain. Other organizations, such as the Australian Academy of Science and the Group of Eight (Go8), have also made pre-budget submissions advocating for increased investment in medical research and development, underscoring the systemic challenges within Australia's health innovation ecosystem.