The Federal Budget for 2006-07 again addressed various aspects of the Pharmaceutical Benefits Scheme (PBS). Of particular interest are new product listings to the PBS.
Raptiva, which is used in the treatment of patients with severe chronic plaque psoriasis, has been listed on the PBS since 1 April 2006 and will continue to be listed for the next five years. The average cost of providing Raptiva will be approximately $1,055 per prescription (estimated to be $235.4 million over five years). General consumers will pay a $29.50 co-payment per script and concession card holders will pay a $4.70 co-payment per script.
Vytorin, which is a combination of two PBS listed drugs (simvastatin and ezetimibe) and is used in the treatment of cardiovascular disease has been listed on the PBS since 1 February 2006. It will cost an estimated $163.8 million an average cost per prescription of approximately $130. General consumers will pay a $29.50 co-payment per prescription and concession card holders will pay a $4.70 co-payment per prescription.
In addition to Raptiva and Vytorin, new listings also include:
- Ezetrol for the treatment of peripheral vascular disease and heterozygous familial hypercholesterolaemia;
Xeloda for the treatment of stage III Colon cancer;
- Thalidomide Pharmion for the treatment of patients with multiple myeloma; and
- Pegasys for the treatment of hepatitis C.
Shortly after the Budget announcement, Health Minister Tony Abbott revealed that he planned to strip $1 billion over four years from the $6 billion PBS by exposing the margins chemists receive for drugs, making generics the default prescribing option and reducing the amount the Government pays when a copycat drug enters the market.
The plan has received criticism from such quarters as the Pharmacy Guild and Medicines Australia. Such criticism includes concerns that the plan may discourage generic manufacturers from pursuing valuable research and unreasonably reduce pharmacists income earning capacity. Mr Abbott has attempted to combat such criticism by offering compensation to affected pharmacists.
Mr Abbott has said that his plan is not yet a final proposal and that he will consult with interested groups before taking a submission to Cabinet by August this year.
For further information regarding this article and any matters concerning the pharmaceutical industry, please contact Damien Wurzel on (03) 9608 2288 or d.wurzel@cornwalls.com.au
