The Government said it will have a budget commitment to use the $1.8bn savings provided by the innovative medicines industry to fund new medicines on the Pharmaceutical Benefits Scheme (PBS) over the coming years.
The five-year strategic agreement between the Government and Medicines Australia will provide certainty for the industry until 2022, which will help to ensure patients continue to access the latest medicines via the PBS.
“Novartis is a significant contributor to the Australian economy, employing nearly 800 highly skilled associates and investing significantly in clinical trials. As a member of the Australian community we recognise the need to find solutions for the fiscal challenges facing the country. Minister Hunt has a good understanding of our industry and acknowledges the value we bring to the economy and, most importantly, Australian patients. The Minister demonstrated this throughout the discussions in order to reach this landmark agreement,” said Brian Gladsden, country president of Novartis Australia and New Zealand.
The generics and biosimilars industry will also benefit from an additional two years of certainty via the extension until 2022 of the current agreement between the Generics and Biosimilars Association of Australia and the Government.
“We believe the Government’s agreement also provides a sustainable and supportive environment for biosimilars and generic medicines in Australia. We have a role to play in supporting the growing healthcare needs by pioneering novel approaches to help people around the world access high-quality medicine,” said Allan Tillack, general manager of Sandoz Australia and New Zealand, Novartis’ quality generics and biosimilars division.
The agreement will help ensure a contingency reserve for the listing of new medicines, reduced need for reference pricing and concessions, and a clear resolution of biosimilars policy with compulsory consultation.
Novartis is committed to improving lives of patients through both innovative medicines and increased access to treatment through the introduction of biosimilars.