Market Research Reports, Inc. (www.marketresearchreports.com): The Pharmaceuticals Market in Australia expected to reach approximately $32 billion in 2020, Reveals New Report
(M2 PressWIRE Via Acquire Media NewsEdge) Market Research Reports, Inc. has announced the addition of "CountryFocus: Healthcare, Regulatory and Reimbursement Landscape - Australia" research report to their website http://www.marketresearchreports.com
The Australian healthcare market is a mature market driven by universal healthcare coverage and good access to facilities such as government-subsidized medicines. The growing elderly population and its associated disease burden, well-defined regulatory guidelines, the usage of substitute drugs and the introduction of a new manufacturing policy will drive the growth of the pharmaceutical market in future. However, a focus on generic substitution and price cuts will restrict the growth of the market.
The pharmaceuticals market in Australia was worth approximately $18 billion in 2008. This total is expected to reach approximately $32 billion in 2020, increasing at a Compound Annual Growth Rate (CAGR) of 5.1% (Department of Industry, 2013a). The segments that dominated the market in 2013 were the drugs for the diseases of the Central Nervous System (CNS), cardiovascular, and respiratory system.
In June 2013, the largest firm by Pharmaceutical Benefits Scheme (PBS) sales was Pfizer, with sales equivalent to 12.4% of the value of total sales made to the PBS. The leading 10 suppliers by sales contributed more than 67% of the value of total sales made to the PBS. In June 2013, Alphapharm was the largest firm in terms of the number of prescriptions dispensed under the PBS, accounting for 13.3% (PBS, 2013).
The population of Australia amounted to approximately 23.2 million in 2013, having grown at a CAGR of 1.6% from 2008. The elderly population is increasing in size and, as of 2013, accounted for 14.5% of the entire population. This population segment is growing at higher rate (3.6%) than the global average of 2.8% and the European average of 1.4% (UN, 2013). The prevalence of non-communicable diseases, such as cardiovascular disease, respiratory, metabolic disorder and cancer, has increased due to an increasingly sedentary way of life.
In 2013, the government spent approximately $1 billion on R&D on medical and health science and exported $3.8 billion in pharmaceuticals. The government is taking initiatives to reduce the barriers restricting the manufacture of drugs and encourage exports by introducing new policies.
Medicare, which is Australia's public health insurance scheme, provides free or subsidized healthcare services to the Australian population. The PBS component of Medicare provides access to a wide range of necessary and cost-effective prescription medicines. Medicare is funded primarily from general taxes and the Medicare Levy, which is based on taxable income.
The increasing generic substitution and cost-cutting measures adopted by the government have had a negative impact on market growth. Since 2012, the government has reduced the prices of medicines listed on the PBS eight times, by percentages ranging from 1% to 90% (PBS, 2014a). On April 1, 2012, the biggest cut on the prices of medicines listed on the PBS was introduced, and the prices of approximately 1,000 brands of 60 popular prescription medicines were reduced (Maiden, 2012). Generic substitution by pharmacists has been permitted since 1994 and has reduced the overall value of the pharmaceutical market.
The value of the Australian medical devices market amounted to $5.9 billion in 2008 and is expected to grow at a CAGR of 4.9% to reach an estimated $10.4 billion in 2020. Major segments in the medical devices market in 2013 were In Vitro Diagnostics (IVD) with a 15.5% share, orthopedic devices with 13.2%, and ophthalmic devices with 9.6%. The market is driven by factors such as increasing awareness regarding early detection and diagnosis of disease, advancements in medical technology, and an increase in the size of the elderly population.
Australia has a transparent, strong and efficient regulatory system in place to facilitate the approval of pharmaceutical products and medical devices.
The main regulatory authority for pharmaceutical products and medical goods is the Therapeutic Goods Administration (TGA), a division of the Department of Health and Ageing (DoHA). The TGA's overall purpose is to protect public health and safety by regulating therapeutic goods that are either supplied through imports, manufactured in Australia or exported from Australia. The market authorization of any new drug or medical device requires the execution of good laboratory practice and compliance with TGA standards.
On April 1, 2014, the government ceased the operations of the Pharmaceutical Benefits Pricing Authority (PBPA) in order to improve access to medicines and reduce the time taken to list the medicines on the PBS.
Licenses for the manufacture and sale of drugs and medical devices are obtained from the TGA following the submission of an application and validation of documents.
An import and export business license is obtained from the TGA once goods are entered into the Australian Register of Therapeutic Goods (ARTG) and after the submission of documents assuring quality and safety.
Universal healthcare coverage, good access to healthcare facilities and subsidized essential drugs are the distinguishing features of the Australian healthcare system.
The healthcare system in Australia is funded and administered by government at national, state/territory and local level. The healthcare system is also funded by private health insurance programs. Australia's public health insurance scheme, Medicare, offers universal access to healthcare and covers the entire population through programs such as PBS and the Medicare Benefits Schedule (MBS). Private health insurance covers most of the services not provided by Medicare. The government encourages private health insurance through incentives such as the private health insurance rebate, the Medicare Levy Surcharge (MLS) and Lifetime Health Cover (LHC). As of June 30, 2013, approximately 10.3 million Australians had private hospital insurance coverage, equivalent to 45% of the population (ABS, 2013a).
Australia has been given an AAA rating based on political stability and economic growth over recent years.
Since Prime Minister Tony Abbott was elected, many of the country's issues have been solved by measures such as the reduction of carbon emission tax and other natural resource. The carbon emission tax has been reduced by 5%. The current government has taken an initiative for the elderly population by introducing schemes such as 'Living Longer Living Better'. In addition, in order to expedite economic growth, the government is investing in higher education, health benefits, R&D and infrastructure, as well as taking initiatives to reform the current tax structure in order to encourage business investment and increase employment.
For more information visit at - http://mrr.cm/ZBH
Other Reports on Australian medical devices market:
1st - Australia Bronchoscopes Market Outlook to 2020 - visit at: http://mrr.cm/ZBz
2nd - Australia Resectoscopes Market Outlook to 2020 - visit at: http://mrr.cm/ZBK
3rd - Australia Hernia Repair Market Outlook to 2020 - visit at: http://mrr.cm/ZBr
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