New Policies Promote Investment in Australia's Pharmaceutical Industry

The Federal Government is to introduce two significant new policies for the pharmaceutical industry.

The Minister for Industry, John Moore, announced today the Government would invest $300 million over five years in a new program to follow the existing Factor(f) scheme, which is due to conclude in mid-1999.

The Minister also announced the Patents Act 1990 will be amended to provide for extensions of term of up to five years for 20-year standard pharmaceutical patents and will also allow springboarding (preparation for generic copying of drugs) for eligible patents. This will bring Australia into line with international best practice.

The announcement forms part of the Government's final response to the Industry Commission report on the pharmaceutical industry.

“The Government is determined Australia will maintain an internationally competitive operating environment for its pharmaceutical industry into the 21st century,” Mr Moore said.

“This is a knowledge-based, technology-intensive industry which is uniquely placed to develop and commercialise the results of long term investment in medical research.”

The Minister said a key element of the Government's industry policy is ensuring Australia is an . internationally competitive location for investment.

“Our decision supporting the future of the pharmaceutical industry is a reflection of this priority.

“The pharmaceutical industry is a major employer and the Government wishes to encourage these companies to plan their future investment with confidence. Our decision is designed to encourage the companies to invest, develop and create additional skilled jobs for Australians.”

Mr Moore said that two of the most important factors which shape investment in the pharmaceutical industry on an international basis are: the extent of price controls and the competitiveness of a country's patents regime.

“The Government's final response to the Commission's Report addresses these two key issues.”

Contact: Cheryl Cartwright, Mr Moore's Office, 06 277 7580

CMR391