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US policy challenges Australia’s PBS

Press/Media: Expert Comment

Description

Could delisting PBS medicines be a potential response to US pressures? An RACGP expert warns the move would cause harm.

Subject

Medicines policy

Primary care

Period13 Nov 2025

Media contributions

1

Media contributions

  • TitleUS policy challenges Australia’s PBS
    Degree of recognitionNational
    Media name/outletNews GP
    Media typeWeb
    Country/TerritoryAustralia
    Date13/11/25
    DescriptionRACGP Expert Committee – Quality Care Chair Professor Mark Morgan said it is not yet clear what the full implications of US tariffs and America-first policy will be on the cost of medicines going forward, however delisting medicines is concerning.

    ‘For individual patients, having their medication de-listed from the PBS is distressing and harmful,’ he told newsGP.

    ‘I hope any decisions about de-listing will only be made after a transparent process. The voice of GPs and patients both need to be heard in the decision-making process.’

    Professor Morgan said Australians need access to effective, affordable medication, and ‘we are lucky in Australia to have systems in place that maintain the quality and access to medicines’.

    However, there are shortfalls, and there is room for improvement, he noted.

    ‘Where Australia falls behind is onshore manufacturing of medicines and adequate warehousing. We seem to have medication shortages far too often,’ Professor Morgan said.

    ‘I would like to see thriving local manufacturing of pharmaceuticals to mitigate some of the risks from lack of supply. I wonder whether there could be arrangements for local manufacturing under licence where US companies manufacture in Australia and visa versa.’

    Another big gap, Professor Morgan added, comes from the lack of funding for the development of new medicines.

    ‘Pharmaceutical companies need to cover huge research and development costs that makes these medicines very expensive,’ he said.

    ‘The need to recoup costs of development also means a lack of investment in producing medicines for low volume conditions. This is bad news if you have a rarer condition.’

    Professor Morgan believes there is a ‘huge opportunity for better prescribing decision support at the coal face’.

    ‘For example, we know the majority of people at high risk of cardiovascular disease are not treated while many people at low risk are treated,’ he said.

    ‘Overall, prescribing decisions are a much greater impact than the marginal benefits of a newer medication over an existing off-patent medication.’
    Producer/AuthorKaren Burge
    URLhttps://www1.racgp.org.au/newsgp/professional/us-policy-challenges-australia-s-pbs?utm_source=racgpnewsgpnewsletter&utm_campaign=newsgpedm&utm_medium=email
    PersonsMark Morgan