Representatives of some of the largest pharmaceutical companies have accused the Federal Government of reneging on a deal in which they accepted to charge less for their product in return for policy stability.

 

Recent backflips with listing drugs on the Pharmaceutical Benefits Scheme (PBS) in which the Federal Government broke with tradition and refused to list drugs recommended by the Pharmaceutical Benefits Advisory Committee (PBAC) have contributed to the spat between industry and Government.

 

The accusations of reneging on the deal come as the Federal Government announced the listing of 13 new drugs after bowing to pressure from both the pharmaceutical and health industries.

 

The Federal Government announced spending cuts to the $9 billion PBS in an attempt to return the economy to surplus by the end of the 2012-13 financial year.

 

Pharmaceutical executives told a senate hearing that any savings gained by spending cuts to the PBS would be offset by an increase in patient costs as a result of declined access to drug treatments. They argued that any drugs recommended by the PBAC were already vetted for cost effectiveness and that any cuts to PBS drugs would be counter-intuitive to savings.

 

The executives lamented the ‘politicisation’ of a previously bi-partisan service that provided the best services to customers.