The Pharmaceutical Industry

About the Inquiry

This inquiry aimed to recommend ways to improve the overall economic performance of the Australian pharmaceutical industry and its contribution to the Australian economy. The inquiry encompassed both the prescription drug and the over-the-counter sectors of the industry.

A wide range of issues were covered including:

• national and international market trends, with global rationalisation of the industry;
• the Australian industry's strengths and weaknesses;
• the advantages and disadvantages of Australia as an investment location;
• export potential; the effects on the industry of current institutional and regulatory measures; and
• research and development (R&D) and commercialisation issues.

The Commission was also asked to identify and quantify the economic contribution made by the industry. In particular, the Commission evaluated the effectiveness and efficiency of the Factor (f) Scheme, due to expire in 1999, and quantified the costs and benefits of Factor (f) Scheme assistance. A central concern was to consider measures which could be undertaken to remove or compensate for impediments - or which could otherwise contribute to the efficiency, growth, or export development of the industry. In doing so, the Commission considered long-term policies to provide certainty and continuity for investment in pharmaceutical R&D, manufacturing and exports.