Australian government could boost pharmaceutical exports
Encouraging direct investment in Australia-based industries will assist growth in biomedical research and generics
Australia's pharmaceutical sector hopes that the country’s new centre-right government will move ahead with its plans to increase medicine exports from the country. Manufacturers are optimistic about the government’s plans to increase export capacity and competitiveness in specialist high-value manufacturing, research and clinical trials.
Dr Brendan Shaw, Chief Executive of industry body Medicines Australia, said: 'There are a number of commitments made by the incoming Australian government that are encouraging for developing the industry in Australia, including improving the regulation of clinical trials and strategies to develop particular manufacturing industries.
Ahead of the election on 7 September, the coalition produced a lengthy manifesto dedicated to improving the competitiveness of Australian manufacturing, with the pharmaceutical and biotechnology sectors getting top billing. Some key promises included an injection of AUD50m (USD47m) into an Export Market Development Grants scheme, which offers grants covering up to 50% of promotion costs for small-and-medium sized export enterprises, and AUD50m dedicated to a Manufacturing Transition Fund for communities and industries wanting to move to high-tech manufacturing growth areas, such as pharmaceuticals.
Further investment incentives included abolishing a controversial carbon tax and lowering the company tax rate by 1.5%.
According to the new industry minister, Ian Macfarlane, pharmaceutical manufacturing will benefit in various ways from these policies.
'Encouraging direct investment in Australia and Australia-based industries will assist growth in large and small bio-medical research, biotechnology firms, originator and generic medicines companies, which comprise the pharmaceuticals industry,' he said, adding that lowering the company tax rate and cutting red tape would also reduce cost barriers to innovation and manufacturing.
The Australian medicines industry already boasts exports of AUD4.06bn (USD3.86bn) in 2011–12 according to Department of Industry figures, and employs 41,000 people (one third in manufacturing), with around AUD1bn (USD950m) spent on research and development in 2010–11.
