Objective
Improve the long-term sustainability and international competitiveness of the Australian pharmaceuticals industry, stimulate investment in the industry, and develop Australia as a regional centre for research and development (R&D), manufacturing and export.
Significance for Australia
The Australian pharmaceuticals industry comprises bio-medical research, biotechnology firms, originator and generic medicines companies and service related segments including wholesaling and distribution. In 2007-08, the industry employed over 40,000 people (including 13,500 in manufacturing) and turned over around $20.7 billion. Exports were $4.03 billion in the 2008-09 Financial Year, making pharmaceuticals Australia’s second largest manufactured export after automobiles and automotive components. In 2006-07, the industry spent around $860 million on research and development.
Sales of complementary medicines in Australia are worth around $1.2 billion a year.
Departmental role and current achievements
The Department provides policy advice and undertakes initiatives on a wide range of issues. These include:
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Facilitating the Pharmaceutical Industry Working Group meetings - a forum for the health and innovation Ministers to meet with industry CEOs;
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Support investment in manufacturing, R&D and services activity in Australia
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Increasing the commercialisation of Australian bio-medical research
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Monitoring international developments on patents, access to medicines and market access
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Reviewing intellectual property and regulatory issues that impact on industry
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Administering a grant of $10 million for the establishment of a small-scale mammalian cell expression facility funded through the Pharmaceuticals Partnership Program (P3)
The Department continues to work with industry to improve the operational environment through forums such as the Pharmaceuticals Industry Council (PIC) and the PIC R&D Task Force (RDTF) to significantly increase Australia's share of the global industry.
A primary role of the Department is to keep industry informed of Government initiatives. In line with the Government's broader innovation agenda, the 2009-10 Budget focuses on supporting industry generally, especially industries with a significant research and development component, such as the pharmaceuticals and biotechnology industry. The R&D Tax Credit announced in the Budget to replace the current R&D Tax Concession is one of the main new initiatives. There is also Commercialisation Australia which will provide a fresh approach to commercialising the best Australian research. Additionally, the Innovation Investment Follow-on Fund (IIFF) assists the most promising innovative companies to address the lack of capital available during the global financial crisis.The IIFF will enable these early-stage companies to continue to develop and to commercialise research.
Targets for 2009-10
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Work with industry through the Pharmaceuticals Industry Council, and other forums to improve the industry’s operating environment and develop responses to global trends;
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Implement investment attraction initiatives
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Forge stronger links between the pharmaceuticals and biotechnology industries
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Provide high quality pharmaceuticals industry policy advice including the impact of the Pharmaceutical Benefits Scheme on the competitiveness of the Australian pharmaceuticals industry
For further information
Phone: +61 2 6213 6597
Email: pharmaceutical@innovation.gov.au
Web: www.innovation.gov.au