MEDICINES AUSTRALIA ANNUAL REPORT 2010–11 MEDICINES AUSTRALIA 2 ANNUAL REPORT 2010–11 CONTENTS 3 Medicines Australia Vision + Mission Statement 3 Chairman’s Report 5 Chief Executive’s Report 7 Medicines Australia Board Members 2010-11 9 Medicines Australia Secretariat 2010-11 11 Medicines Australia Members 2010-11 KEY ISSUES 12 Improving timely access to medicines for Australians 14 Improving the investment environment 17 Celebrating 50 years of the Code of Conduct 19 Code of Conduct performance in 2010-11: a snapshot 20 Introducing The Australian Medicines Industry brand 22 Key Events Diary 26 Conferences and Events 28 Awards 30 Industry Representation on Government Bodies and for Other Organisations 34 Working with our Members 40 Working with the Community 42 Inside Medicines Australia 44 Medicines Australia Publications 45 Index of Acronyms and Abbreviations © Copyright Medicines Australia 2011. All rights reserved. This Annual Report provides a summary of Medicines Australia’s activities, initiatives and achievements for the financial year ending 30 June 2011. CONTACT Julie Johnson, Medicines Australia, Level 1, 16 Napier Close, Deakin ACT 2600 TELEPHONE 02 6122 8503 • Facsimile 02 6282 6299 • EMAIL [email protected] • WEBSITE www.medicinesaustralia.com.au Design: Designers Wakefield Bevanda MEDICINES AUSTRALIA ANNUAL REPORT 2010–11 3 Medicines Australia Chairman’s Vision + Mission Report Statement The focus for Medicines Australia in 2010-11 has been finalising and implementing the Memorandum of Understanding with the Commonwealth, to secure a more VISION predictable and stable policy environment. This has been a difficult task, in part because of the A leader in positive health outcomes, productivity and Federal Cabinet’s decision in February 2011 to defer the economic growth through the availability of innovative listing of some new medicines on the Pharmaceutical prescription medicines. Benefits Scheme (PBS). While by and large the MoU is delivering on its objectives to deliver savings and improve MISSION PBS listing processes, the Government’s decision to defer the listing of some new medicines on the PBS is not In partnership with stakeholders, drive the creation and consistent with the spirit of the MoU. development of an environment for the continued sustainable growth of the innovative research-based Medicines Australia has pursued a varied but focussed prescription medicines industry. agenda over the past 12 months, and by working in partnership with government and other stakeholders, we have achieved some significant outcomes in important STRATEGIC DIRECTIONS policy areas. • Achieve credibility with, and obtain the trust of key Indeed, Medicines Australia’s parliamentary engagement stakeholders. has been constructive and solutions-oriented, and in the • Continuously improve access to innovative medicines. past year I have met personally with key politicians • Achieve an optimal environment for sustainable including the Prime Minister, the Treasurer, the Minister innovation. for Health and Ageing and the Opposition Health Spokesman. • Maintain a high standard of ethical industry conduct through effective self-regulation. In December 2010, some seven months after the MoU was first signed with the Commonwealth, the Federal • Demonstrate leadership as a model pharmaceutical Parliament passed the legislation required to deliver the industry association. PBS savings set out in the MoU. The process improvements to the PBS that were negotiated as part of this agreement were implemented in the latter half of the year. The result is that Australian patients should enjoy faster access to innovative new medicines. Over the past year, I have continued to co-chair the Access to Medicines Working Group with David Learmonth, Deputy Secretary of the Department of Health and Ageing. The AMWG has made good progress in driving the implementation of the MoU. MEDICINES AUSTRALIA 4 ANNUAL REPORT 2010–11 We also co-convened the Joint Medicines Policy Medicines Australia has continued to support the Conference in Canberra in late August, the third in a series community in a number of areas where assistance is most of successful forums to discuss and debate medicines needed. In January Medicines Australia donated $100,000 policy in Australia. to the Queensland flood disaster relief appeal, while The substantial PBS savings promised under the MoU and industry’s aggregate contribution to the appeal exceeded earlier PBS reforms have also started to flow. Statutory $1.7 million. price cuts and price disclosure of up to 70 per cent in some In partnership with the Jimmy Little Foundation we have cases, have put a brake on PBS growth. In fact, at one continued to roll out a healthy eating awareness program point towards the end of the year PBS expenditure was for indigenous children in northern Australia and made growing at less than the rate of inflation. considerable progress towards the construction of a The fact that the 2011 Federal Budget contained no PBS mobile dialysis unit to treat indigenous patients in the price-related savings measures, as per the Memorandum Western Desert region. of Understanding, was welcome and further evidence of There have been three additions to our membership this the benefit to industry of the agreement. year. I am pleased to welcome to the association as new However, Federal Cabinet’s decision in February to defer members—Fresenius Kabi, FIT BioCeuticals and Leo the PBS listing of some new medicines, and to effectively Pharma. remove the $10 million Cabinet threshold, was extremely Medicines Australia has benefited enormously from the disappointing and was opposed universally across the excellent leadership of our chief executive Brendan Shaw, health sector. who has earned the respect of the Board and the The decision breached the intent of the MoU. Medicines membership, and who has been a consistently passionate Australia will continue to advocate for the return of the and energetic advocate for the industry. well-established, independent, non-political process for I would also like to place on record my sincere thanks to bringing new medicines onto the PBS that has served my fellow Board members for their staunch support and Australian patients well for decades. assiduous work on behalf of member companies over the The Pharmaceuticals Industry Council, which I have past year. continued to chair this year, has made progress against its priorities, which are to enhance the operating environment for clinical trials in Australia, to achieve a predictable and stable reimbursement pathway for biosimilars and to raise awareness of industry issues among all political stakeholders. WILL DELAAT At the Pharmaceuticals Industry Working Group meeting in May, the Minister for Health and Ageing, Nicola Roxon and the Minister for Innovation, Industry, Science and Research, Kim Carr reaffirmed their commitment to work with the industry to tackle these issues. In November 2010 I gave an address to 300 guests at the National Press Club of Australia titled The medicines industry and a healthier Australia. The address, which set out Medicines Australia’s policy agenda, was also broadcast nationally on ABC television. A transcript of the address is available here. MEDICINES AUSTRALIA ANNUAL REPORT 2010–11 5 Chief Executive’s Report Medicines Australia has recorded some significant Nevertheless, in February 2011 the Government dropped a achievements in 2010-11, despite the Federal Cabinet’s bombshell by announcing that it was tightening Cabinet troubling decision to defer the listing of some new control of all PBS listings, indefinitely deferring the listing medicines on the Pharmaceutical Benefits Scheme. of seven new medicines and one vaccine. The election outcome in August 2010 has presented a This announcement was made with no prior consultation much more complex political environment. This makes the and clearly breached the intent of the MoU. It is job of representing industry’s interests that much more disappointing for a whole range of reasons, not least of challenging. We have responded to these challenges over which is that it came less than three months after the MoU the past 12 months by increasing industry engagement legislation was passed by the Parliament with industry’s with Parliament and by directing dedicated resources to support. It is poor policy and will adversely impact parliamentary liaison. Australian patients, industry and ultimately Government These efforts were exemplified by the successful Medicines itself. Australia parliamentary dinner in March, an event which Accordingly, Medicines Australia and its member put the industry on show and drew an attendance of over companies have joined patient groups, the generics 30 Members of Parliament. The evening was particularly industry, doctor groups, independent economic memorable for two excellent speeches by the Minister for commentators, the Australian community, the Coalition Innovation Senator Kim Carr and the Director General of and the Australian Greens, and the media in a campaign to the World Intellectual Property Organization, Dr Francis have this flawed policy overturned. Gurry. Video of both speeches can be viewed here. Among the many disappointments of the Government’s Through the second half of 2010 Medicines Australia finally decision is that it flies in the face of the intent of the MoU secured the Memorandum of Understanding with the to provide policy predictability. Medicines Australia will Commonwealth on the