New plan to ensure vital medicine supply

·1-min read

The federal government and pharmaceutical industry have finalised a new agreement to guarantee the supply of vital medicines from 2022.

Drug companies have agreed to hold additional stocks of medicines onshore, of between four and six months, to better protect against supply volatility against the backdrop of COVID-19.

The government's agreement with Medicines Australia also includes about $5 billion in spending for Pharmaceutical Benefits Scheme medicines starting July next year.

Health Minister Greg Hunt says the agreement will help ensure pharmacies have continuous stocks of subsidised medicines and reduced cost for patients.

"Australians will have early access to new life changing medicines regardless of where they live," he said on Tuesday.

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