Free trade deal could delay Australian access to generics

Australian access to cheaper generic alternatives to expensive drugs could be delayed by years under changes to the Pharmaceutical Benefits Scheme resulting from the recent signed US-Australia free trade deal.

American trade officials succeeded in inserting an intellectual property clause in the trade agreement that will further restrict Australian drug manufacturers from developing inexpensive generics. Under the change, local manufacturers will have to notify the Therapeutic Goods Administration of their plans, which will in turn alert the brand manufacturer.

Although Australian Prime Minister John Howard said the US deal would have no impact on generic drugs, consumer and health experts predict that Australian taxpayers will have to pay high prices for at least three years longer when large multinational pharmaceutical companies receive greater powers to protect their patents an new medicines.

The experts claim the changes will make it easier for these companies to launch costly and lengthy legal battles against local generic manufacturers. Generic medicines have saved taxpayers about A$2bn over the past decade by allowing the Government to buy cheap alternatives to costly branded drugs.