URGENT UPDATE: Australians could face critical delays in accessing “life-changing” medicines due to new drug pricing plans announced by President Donald Trump. In a significant move, Trump signed an executive order in May, mandating US drug manufacturers to reduce prices by September 29, 2023. If compliance falls short, the administration may resort to a “most-favoured pricing” rule, potentially aligning US drug prices with those in other countries.
Elizabeth de Somer, chief executive of Medicines Australia, expressed grave concerns regarding the implications of this plan. She stated that if the US adopts pricing benchmarks based on Australian costs, it could severely limit the availability of pharmaceuticals in Australia. “If the US decided to benchmark their prices to Australia, that would have a big impact because Australian companies and multinational companies would not bring their products to Australia if it was going to impact their ability to sell them in the US,” de Somer warned in an interview with AAP.
This pricing policy threatens to delay the introduction of vital new medicines, including innovative cancer treatments. De Somer emphasized the urgency of the situation, stating, “Companies are already making decisions to delay launching new medicines… It’s really those new medicines that may be life-changing and life-saving for Australians that may get delayed coming here.”
In a separate announcement, Trump declared he would impose a 100% tariff on branded pharmaceutical imports starting Wednesday, unless companies commit to building US manufacturing plants. With pharmaceuticals being one of Australia’s largest exports to the US, valued at $2.2 billion, this tariff could have far-reaching effects. However, de Somer argued that the pricing proposal poses a more significant risk to Australian patients than tariffs. “Tariffs would have a detrimental impact on US consumers’ access to medicines… But Australians may miss out on new medicines and not get them at all if the reference pricing policy was implemented,” she stated.
Prime Minister Anthony Albanese is set to address these pressing issues in a face-to-face meeting with Trump on October 20, 2023, during his attendance at the United Nations General Assembly. De Somer highlighted the importance of this meeting, asserting, “We believe in free, fair and open trade. We don’t believe in tariffs… I’m sure that the prime minister will put that position to the president when he’s in the US.”
As developments unfold, the potential consequences for Australians reliant on essential medications hang in the balance. The urgency of the situation continues to escalate, and the global community is watching closely to see how these policies will impact access to life-saving treatments. Stay tuned for further updates as the situation develops.
