News
Despite walking away from the deal earlier this year and price negotiations stalling, the drug’s manufacturer confirmed its intentions.
‘We are not shirking all the blame on the Government. We can be flexible and think about adaptive schemes, and we’re open to new schemes, but at the core of it is the value placed on the medicine.’
The global manufacturer of weight loss drug tirzepatide (sold as Mounjaro) has confirmed it remains interested in getting the medication listed on Australia’s subsidised scheme at a ‘fair price point’.
Despite walking away from negotiations in April over pricing concerns, Eli Lilly CEO David Ricks told the ABC the company would still like to reach an agreement with the Australian Government.
‘We definitely want Mounjaro to be listed on the PBS,’ he said.
‘We’ve attempted that at least three times so far, and it’s unusual to not be listed because it’s on the WHO essential medicine list, and I think your expert clinicians – well, expert clinicians everywhere, but including in Australia – are highly recommending it for people with diabetes.’
But the difference between the pharmaceutical company’s asks and the Government’s offer ‘wasn’t close enough to bridge and we’re struggling to think of a way to resubmit at this point’, Mr Ricks said.
Central to the debate is the way Australia is valuing the medicine, as well as knock-on global impacts.
‘We are not shirking all the blame on the Government. We can be flexible and think about adaptive schemes, and we’re open to new schemes, but at the core of it is the value placed on the medicine,’ Mr Ricks said.
‘Australia is not an island as it comes to pricing. When we consider the price point, it ripples across the world and can debase the medicine everywhere, which has an effect on our ability to reinvest in R&D.
‘We’re not interested in access at any price point. We think a fair price point would be good. How about one similar to the UK or Canada or other countries that have moved forward with listing? That’s what we’re suggesting.’
The RACGP’s position statement on obesity prevention and management states that general practice is central to obesity prevention, and this needs to be continually supported through improved funding for general practice consultations.
However, it says funding must be directed towards addressing ‘the current inequity in access to effective evidence-based obesity management services and therapies’.
There is very little doubt among experts that the ability to pay for these breakthrough weight-loss and diabetes medications is a huge access barrier.
A recent study of GLP-1 use in Australia revealed approximately half a million people are regularly using these medicines, and almost half of this group are paying between $200–$700 out-of-pocket to access them for conditions other than diabetes.
Dr Gary Deed, Chair of RACGP Specific Interests Diabetes, said it’s positive that the manufacturer is still interested in working with the Australian Government to have Mounjaro listed on the PBS.
‘This remains a positive aspect in the whole arena of assisting clinical management where weight may be central to key health issues and knowing that inequity seems to magnify effects in at risk populations,’ he told newsGP.
‘The Government is maintaining a watchful eye on pricing from manufacturers to ensure the viability of the whole PBS without a huge cost shift to the use of these agents – it would be a grave concern should people living with other diseases and needing access to critical or emerging agents were to have limitations to access due to funding being limited.
‘However, on the opposite side of the coin, we don’t have access to obesity management agents for people who need PBS support to gain access.’
Dr Deed also notes emerging treatments on the horizon which also require a measured approach.
‘There are so many newer weight loss agents appearing in clinical trials,’ he said.
‘We need a careful, planned approach to public funding because setting benchmarks now may have future PBS funding risks in this whole area.
‘I understand the Government’s caution, but at least there are ongoing talks. What may emerge, however, might be very restricted funding for a small number of select patient groups which may upset the general public who perceives they thought they were going to receive funding.’
Speaking earlier this week, Federal Health and Ageing Minister Mark Butler reiterated that establishing an agreed price remains the biggest hurdle in getting these drugs subsidised.
‘This is a revolutionary class of drugs, and I certainly want to see them on the PBS so that Australians have access to them in an equitable way,’ he said.
‘My department has been working with the [pharmaceutical] companies to try and agree a price that they’re willing to receive and we’re willing to pay on behalf of taxpayers – and we haven’t been able to agree on that price yet.’
From Eli Lilly’s standpoint on negotiations, Mr Ricks said, ‘we never close the door – we can always talk about new ideas’.
Log in below to join the conversation.
affordable healthcare equitable healthcare GLP-1 PBS semaglutide weight loss weight-loss drugs
newsGP weekly poll
Which digital health initiative would have the greatest positive impact on your practice?