Australian pharmaceutical market to grow to be worth $25 billion by 2020

pharmafile | September 26, 2016 | News story | Business Services, Sales and Marketing Australia, Australian Government 

The Australian market, in 2016, is currently worth over $22.85 billion and is predicted to reach $25.2 billion by 2020, according to research and consulting firm GlobalData. They concluded, in their study, that the growth will arise through good market access to pharmaceutical drugs, increasing awareness of the need for the early detection of lifestyle and chronic diseases, the subsidised cost of prescription medicines, through the Pharmaceutical Benefits Scheme (PBS) for all eligible patients, and the annual addition of new drugs to the PBS drug list.

There are positive growth trends across the Australian pharmaceutical market and these can largely be attributed to an increasingly elderly population, universal health coverage and government initiatives. The Australian government spent $22.03 billion on R&D in medical and health science and exported $3.53 billion of pharmaceutical products. The medical device market was also valued at $8.85 billion in 2015 and is projected to grow at a CAGR of 0.1% to $11.44 billion by 2020.

There are 140 separate firms that supply to the PBS, with an emphasis being placed on the usage of generics expected to spur growth. It is predicted that this, though it may limit market valuations, will open up the market to generic competition and stimulate the growth of local generic manufacturing industry. These factors combined with a favourable tax market should continue to encourage positive growth figures.

Ben Hargreaves

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