About the Report
This report focuses on the current and historic levels of spending on medicines in Australia. As government data suggest healthcare and medicine spending is rising, an enhanced understanding of the drivers of those trends can better inform policy. The report provides unique views of IQVIA data alongside official government statistics to provide context and clarity to these important issues.
The report analyzes pharmaceutical spending trends in Australia and includes comparisons to spending in other healthcare sectors. In particular, the report examines the Pharmaceutical Benefit Scheme (PBS) and pharmaceutical sector spending. While overall healthcare spending has grown 5% on a CAGR basis between 2010 and 2018, net PBS spending on pharmaceuticals decreased from 8% to 5% of total healthcare spending in this period. The report also presents analyses of the impact of rebates, brand volume, and price on spending, as well as a view of per capita revenue and net spending. In the period from 2010 to 2019, pharmaceutical net revenues remained relatively flat with the launch of new brands driving spending and price events as the largest negative driver of growth. Net pharmaceutical revenues and PBS spending have remained constant on an adjusted per capita basis capita basis, at an average just over $1 per day, compared to steadily increasing spending on hospital and medical, which is currently averaging over $13 per day per person in Australia.