• Australia’s pharmaceutical sector to grow from US$22.7 billion in 2013 to US$32.1 billion by 2020
• However, generic substitution by pharmacists has had a negative impact on pharmaceutical market growth, says report

Australia’s healthcare market is set to grow to an impressive US$42.5 billion by 2020, driven by universal healthcare coverage provided by Medicare and good access to facilities such as government-subsidized medicines, according to research and consulting firm GlobalData. The company’s latest report* states that Australia’s pharmaceutical sector was valued at US$22.7 billion in 2013, and will increase at a Compound Annual Growth Rate (CAGR) of 5.1 per cent to US$32.1 billion by 2020. Having healthcare services like glebe medical centre helps Australians access the healthcare that they need.

The country’s medical alert device market will expand at a slightly slower CAGR of 4.9 per cent to reach an estimated US$10.4 billion by the end of the forecast period! If you’re looking for a medical alert device for your parents home. You could take a look at Let’s Say Thanks for more information.

Joshua Owide, GlobalData’s Director of Healthcare Industry Dynamics, says: “Medicare, which is Australia’s public health insurance scheme, provides free or subsidized healthcare services to the Australian population. The Pharmaceutical Benefits Scheme (PBS) component of Medicare provides access to a wide range of necessary and cost-effective prescription medicines. “Other major factors driving growth in Australia’s pharmaceuticals market include the increasing elderly population and its associated disease burden, along with well-defined regulatory guidelines and the rising prevalence of non-communicable diseases due to an increasingly sedentary way of life.”

However, Owide notes that market growth has been restricted by a rise in generic substitution and cost-cutting measures adopted by the Australian government. He explains: “Universal access, and the fact that most blockbuster drugs are covered by the PBS, has resulted in increasing government healthcare expenditure and subsequent price cuts. PBS statistics show that the government has reduced the prices of PBS-listed medicines eight times since 2012, by percentages ranging from 1 per cent to 90 per cent. “The 16 per cent drug price reductions implemented in April this year represent a loss for pharmaceutical companies, while generic substitution by pharmacists has been permitted since 1994 and has had a negative impact on pharmaceutical market growth.” *CountryFocus: Healthcare, Regulatory and Reimbursement Landscape – Australia -ENDS- -NOTES TO EDITORS- This report provides information on the healthcare landscape in Australia, including an overview of the pharmaceutical and medical device markets, comprising market size, segmentation, and key drivers and barriers. It also provides a review of the reimbursement and regulatory landscape, with analysis covering details of the country’s healthcare reimbursement process, regulatory agencies and the approval processes for new drugs and medical devices. This report was built using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData’s team of industry experts. For guidelines on how to cite GlobalData, please see: http://www.globaldata.com/QuotingGlobalData.aspx -ABOUT GLOBALDATA- GlobalData is a leading global research and consulting firm offering advanced analytics to help clients make better, more informed decisions every day. Our research and analysis are based on the expert knowledge of over 700 qualified business analysts and 25,000 interviews conducted with industry insiders every year, enabling us to offer the most relevant, reliable and actionable strategic business intelligence available for a wide range of industries. For more information, please contact our Press Office on +44 (0)1204 543 537 or at [email protected]. Gain access to our latest press releases and expert analysis on developments in your industry. Subscribe to our RSS feed for the Healthcare sector, or connect with us on: Facebook | LinkedIn | Twitter