Are Australia's drugs too cheap for ourown good?

Abstract

The Pharmaceutical Benefits Advisory Committee (PBAC) plays an important role in controlling the drugs thatare available at subsidised prices under the Pharmaceutical Benefits Scheme (PBS). In brief, the Committeeprovides advice on whether a new drug is sufficiently cost-effective to merit its being added to the PBS. Listingis important to the drug manufacturers, because it has a beneficial effect on sales volume. They are thereforeoften prepared to offer lower prices than would otherwise be the case if availability were determined solely bythe marketplace.