Doctors and medicine-makers today called for an expected $280 million Pharmaceutical Benefits Scheme (PBS) windfall to be ploughed into bringing down the price of new cancer and HIV drugs.
Pharmaceutical industry bodies estimate the PBS will save about $280 million in 2005 as patents over several big-name drugs expire, opening the way for cheaper generic versions to be released on to the market.
Both the Australian Medical Association (AMA) and drug manufacturers' body Medicines Australia called on the government to reinvest the savings in the PBS and make new drugs available to more Australian patients.
"Any savings need to be passed on to newer drugs which are being developed, ... to make sure that medicines remain affordable and accessible," AMA president Bill Glasson told AAP.
"The money we put into our PBS in fact may be a huge saving to our medical system because it prevents people from needing to go to hospital, allows them to stay in the community, allows them to live longer with a better quality of life."
Asked whether the expected savings would be put back into the PBS, a spokesman for Health Minister Tony Abbott said only that the government was aware that "substantial savings" could come from generic drugs.
"We can't comment on future savings because this is a part of the budgetary process and thus remains confidential," he added.
Expensive new-generation cancer, HIV and other drugs were prime candidates for PBS listing, Medicines Australia chief executive Kieran Schneemann said.