Australia’s pharmaceutical market to see 6% five-year CAGR growth: report

Government measures are expected to challenge pharmaceutical firms.

Australia’s pharmaceutical market is projected to expand at a five-year compound annual growth rate of 6% in US dollar terms amidst increasing pricing pressures, said BMI.

According to the Pharmaceutical Benefits Scheme’s Expenditure and Prescriptions report, total prescription drug expenditure reached $13b in 2024, reflecting a year-on-year growth of 5.5%.

However, government measures to control healthcare costs and negotiate lower drug prices are expected to challenge pharmaceutical companies.

“For example, for drug marketing applications made on a basis of cost-effectiveness, over 80% required multiple attempts to secure a listing,” BMI said.

Meanwhile, applications based on cost-minimisation had a higher success rate and faster approval.