7am How Trump could make Australian medicines more expensive
Jun 18, 2025
Jason Koutsoukis, a special correspondent for The Saturday Paper, dives into how a U.S. executive order could make medications in Australia more expensive and less accessible. He explains the implications for the Pharmaceutical Benefits Scheme and raises concerns about drug companies pausing new listings. Koutsoukis investigates whether Australia's government has the leverage to resist this upheaval and how U.S. tariffs could reshape drug pricing. The discussion emphasizes the potential fallout on healthcare affordability and vital treatments for Australians.
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PBS Under Pressure From US Trade Policy
- Australia's Pharmaceutical Benefits Scheme (PBS) negotiates drug prices that keep medicines affordable for consumers.
- The US President's executive order pressures Australia to raise PBS prices, potentially making medicines more expensive for Australians.
Drug Companies Pause PBS Listings
- Drug companies have paused listing new medicines on the PBS due to uncertainty from Trump's order.
- This pause could delay or prevent Australian availability of vital new medicines.
Eli Lilly's Alzheimer's Drug Delayed
- Eli Lilly's experimental Alzheimer's drug, Donanemab, is delayed from PBS listing due to pricing approval hold-ups.
- The global pharmaceutical head office is waiting for clarity on Australia's PBS pricing before proceeding.