URGENT UPDATE: Australians may soon face significant barriers to accessing critical medications following President Donald Trump‘s new drug pricing plan. Announced earlier today, the executive order mandates American pharmaceutical companies to cut drug prices by September 29. If compliance falls short, the administration will consider imposing a “most-favoured pricing” rule that could align US drug prices with those in other countries, potentially limiting Australians’ access to vital medicines.
The chief executive of Medicines Australia, Elizabeth de Somer, voiced her concerns, stating that this plan could severely restrict the availability of “life-changing” pharmaceuticals in Australia. “If the US decided to benchmark their prices to Australia, that would have a big impact because Australian companies and multinational companies would not bring their products to Australia if it was going to impact their ability to sell them in the US,” she explained. The ramifications could include delays in the launch of new cancer treatments and other critical medicines in Australia.
In a separate announcement, President Trump revealed a 100 percent tariff on branded pharmaceutical imports starting Wednesday, unless manufacturers establish production facilities within the US. Pharmaceuticals constitute one of Australia’s largest exports to the US, valued at $2.2 billion. However, de Somer emphasized that the pricing proposal poses a greater threat to Australian patients than the tariffs.
“Tariffs would impact US consumers by likely increasing medicine costs. But if the reference pricing policy is implemented, Australians may miss out on new medicines entirely,” she warned.
Further complicating matters, Prime Minister Anthony Albanese is scheduled to meet with Trump on October 20 during the United Nations General Assembly. Albanese is expected to advocate for free and fair trade, highlighting the detrimental effects of tariffs and pricing policies on Australian health outcomes.
As the situation develops, patients in Australia should remain vigilant about potential delays in accessing new, life-saving treatments. The consequences of Trump’s drug pricing plan could be profound, impacting not just the pharmaceutical market but the health and well-being of countless Australians.
Stay tuned for more updates as this critical issue unfolds.
