Australian pharmaceutical policy: Price control, equity, and drug innovation in Australia

Research output: Contribution to journalArticleResearchpeer-review

16 Citations (Scopus)

Abstract

This paper outlines the increasing salience of drug innovation in the debate for reform of Australia's pharmaceutical policy, particularly change to Australia's price control mechanisms. The pharmaceutical industry has consistently criticised the central role of price control in Australia's pharmaceutical regulatory regime as an impediment to drug innovation and industry growth. Despite ambivalent or contrary evidence on the impact of price control on drug innovation, this criticism, and the appeals for reform it supports, appear to be increasingly influential in directing pharmaceutical policy. This is particularly evident in the implementation of the AustraliaUnited States Free Trade Agreement, which has led to a weakening of the historical process of evidence-based reference pricing in Australia. Should drug innovation come to dominate Australian pharmaceutical policy, there is the potential to precipitate a devaluing of the current public orientation of regulation and diminish equitable access to affordable pharmaceuticals. The manner in which trade policy has effectively undermined a publicly funded pharmaceutical benefits scheme has clear implications for many countries that maintain such programmes.

Original languageEnglish
Pages (from-to)106-120
Number of pages15
JournalJournal of Public Health Policy
Volume29
Issue number1
DOIs
Publication statusPublished - 28 Mar 2008
Externally publishedYes

Fingerprint

Drug and Narcotic Control
Pharmaceutical Preparations
Drug Industry
Costs and Cost Analysis
Growth

Cite this

@article{05df1938c4344cd4ab132eee01e62af4,
title = "Australian pharmaceutical policy: Price control, equity, and drug innovation in Australia",
abstract = "This paper outlines the increasing salience of drug innovation in the debate for reform of Australia's pharmaceutical policy, particularly change to Australia's price control mechanisms. The pharmaceutical industry has consistently criticised the central role of price control in Australia's pharmaceutical regulatory regime as an impediment to drug innovation and industry growth. Despite ambivalent or contrary evidence on the impact of price control on drug innovation, this criticism, and the appeals for reform it supports, appear to be increasingly influential in directing pharmaceutical policy. This is particularly evident in the implementation of the AustraliaUnited States Free Trade Agreement, which has led to a weakening of the historical process of evidence-based reference pricing in Australia. Should drug innovation come to dominate Australian pharmaceutical policy, there is the potential to precipitate a devaluing of the current public orientation of regulation and diminish equitable access to affordable pharmaceuticals. The manner in which trade policy has effectively undermined a publicly funded pharmaceutical benefits scheme has clear implications for many countries that maintain such programmes.",
author = "Evan Doran and Henry, {David Alexander}",
year = "2008",
month = "3",
day = "28",
doi = "10.1057/palgrave.jphp.3200170",
language = "English",
volume = "29",
pages = "106--120",
journal = "Journal of Public Health Policy",
issn = "0197-5897",
publisher = "Palgrave Macmillan",
number = "1",

}

Australian pharmaceutical policy : Price control, equity, and drug innovation in Australia. / Doran, Evan; Henry, David Alexander.

In: Journal of Public Health Policy, Vol. 29, No. 1, 28.03.2008, p. 106-120.

Research output: Contribution to journalArticleResearchpeer-review

TY - JOUR

T1 - Australian pharmaceutical policy

T2 - Price control, equity, and drug innovation in Australia

AU - Doran, Evan

AU - Henry, David Alexander

PY - 2008/3/28

Y1 - 2008/3/28

N2 - This paper outlines the increasing salience of drug innovation in the debate for reform of Australia's pharmaceutical policy, particularly change to Australia's price control mechanisms. The pharmaceutical industry has consistently criticised the central role of price control in Australia's pharmaceutical regulatory regime as an impediment to drug innovation and industry growth. Despite ambivalent or contrary evidence on the impact of price control on drug innovation, this criticism, and the appeals for reform it supports, appear to be increasingly influential in directing pharmaceutical policy. This is particularly evident in the implementation of the AustraliaUnited States Free Trade Agreement, which has led to a weakening of the historical process of evidence-based reference pricing in Australia. Should drug innovation come to dominate Australian pharmaceutical policy, there is the potential to precipitate a devaluing of the current public orientation of regulation and diminish equitable access to affordable pharmaceuticals. The manner in which trade policy has effectively undermined a publicly funded pharmaceutical benefits scheme has clear implications for many countries that maintain such programmes.

AB - This paper outlines the increasing salience of drug innovation in the debate for reform of Australia's pharmaceutical policy, particularly change to Australia's price control mechanisms. The pharmaceutical industry has consistently criticised the central role of price control in Australia's pharmaceutical regulatory regime as an impediment to drug innovation and industry growth. Despite ambivalent or contrary evidence on the impact of price control on drug innovation, this criticism, and the appeals for reform it supports, appear to be increasingly influential in directing pharmaceutical policy. This is particularly evident in the implementation of the AustraliaUnited States Free Trade Agreement, which has led to a weakening of the historical process of evidence-based reference pricing in Australia. Should drug innovation come to dominate Australian pharmaceutical policy, there is the potential to precipitate a devaluing of the current public orientation of regulation and diminish equitable access to affordable pharmaceuticals. The manner in which trade policy has effectively undermined a publicly funded pharmaceutical benefits scheme has clear implications for many countries that maintain such programmes.

UR - http://www.scopus.com/inward/record.url?scp=41249100786&partnerID=8YFLogxK

U2 - 10.1057/palgrave.jphp.3200170

DO - 10.1057/palgrave.jphp.3200170

M3 - Article

VL - 29

SP - 106

EP - 120

JO - Journal of Public Health Policy

JF - Journal of Public Health Policy

SN - 0197-5897

IS - 1

ER -