[Pharm-policy] Pfizer losing fight for Viagra subsidies in Australia

[James Love]

As AIDS patients in South Africa fight for access to Pfizer's
fluconazole, Pfizer loses its fight for subsidies for Viagra in
Australia.   Jamie

http://www.news.com.au/common/story_page/0,2294,463234%255E421,00.html


Viagra loses drug subsidy bid
By SARAH STOCK and LUKE McILVEEN

21mar00

VIAGRA will still cost $70 for four tablets after its makers failed in
the Federal Court, in the first court action of its kind, to force it on
to the Pharmaceutical Benefits Scheme.

In a case watched closely by the pharmaceutical industry, the  court
ruled there was no right of appeal for Pfizer against the Government's
decision not to subsidise its impotency drug.

Pfizer Pty Ltd claimed the Pharmaceutical Benefits Advisory Committee,
which recommends which drugs the Government should subsidise, improperly
exercised its powers by considering the cost to the Government of
including Viagra in the scheme.

But Justice Jane Matthews said the committee's considerations could not
be restricted to medical benefits as suggested by Pfizer.

"The financial consequences to the commonwealth of including a drug in
the scheme is clearly a relevant consideration and the (committee) was
entitled to have regard to it in this case," Justice Matthews said.

The scheme costs the Government $3.5 billion annually and subsidises 70
per cent of all medicines.


  [snip]


Viagra, which is available on prescription, costs about $70 for a packet
of four tablets but if placed on the scheme it would cost about $3 for a
pensioner and about $20 for other users.

Australian Pharmaceutical Manufacturers Association chief executive
officer Alan Ritchie said many pharmaceutical companies had serious
concerns about the operations and procedures of the scheme and that the
ruling could discourage international drug companies from bringing
innovative medicines to Australia. He said his organisation would lobby
the Government for a fair appeals mechanism.

   [snip]


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James Love, Director           | http://www.cptech.org
Consumer Project on Technology | mailto:love@cptech.org 
P.O. Box 19367                 | voice: 1.202.387.8030
Washington, DC 20036           | fax:   1.202.234.5176
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