Healthy Skepticism Library item: 8929

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: Journal Article

Burton B.
Lilly's challenge to Australia's drug rationing scheme fails
BMJ 2007 Mar 17; 334:(7593):552
http://www.bmj.com/cgi/content/full/334/7593/552

Abstract:

Eli Lilly Australia has failed to overturn the repeated rejection of its osteoporosis drug teriparatide (Forteo) from being included in the government’s drug subsidy scheme. An independent review, requested by the company, dismissed the clinical data in Lilly’s submissions as inadequate.

The review was seen as a test case on whether a change, introduced at the insistence of the drug industry through the Australia-US free trade agreement, would make it easier to overturn decisions made by the Pharmaceutical Benefits Advisory Committee. That committee decides which drugs are included in Australia’s pharmaceutical benefits scheme, under which patients receive them at a subsidised rate (BMJ 2006;333:1239, doi: 10.1136/bmj.39062.420995.DB and 2003;326:680, doi: 10.1136/bmj.326.7391.680/c).

If Lilly’s drug teriparatide had been approved under the scheme, patients would have paid a maximum of $A30.70 per prescription, with the government paying the remainder of the cost. A year’s supply of the drug costs about $A10 . . .