Patents deal pushes up cost of drugs

A DEAL between the government and the pharmaceutical industry is costing Australia hundreds of millions of dollars in drug subsidies, a leading health economist has calculated.

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One cholesterol drug, atorvastatin, will cost the Australian health system $590 million more than New Zealand will pay for a generic alternative because of the memorandum of understanding signed between Medicines Australia and the government.

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In that deal the government committed to an 18-month period to analyse and negotiate cuts to the amount it pays for drugs that come off patent. Sydney Morning Herald – Read more…