Read The Times Australia

Daily Bulletin

Why doesn’t Australia make more medicines? Wouldn’t that fix drug shortages?

  • Written by: Peter Coomber, PhD Candidate, Pharmaceutical Supply Chains, The University of Queensland
Why doesn’t Australia make more medicines? Wouldn’t that fix drug shortages?

About 400 medicines are in short supply in Australia. Of these, about 30 are categorised as critical. These are ones with a life-threatening or serious impact on patients, and with no readily available substitutes.

Since 2024, there has been a nationwide shortage of sterile fluid. This continues to affect health care across Australia.

However, medicine shortages in Australia are not new. We know from past experience that six classes of medications are the most likely to go short: antibiotics, anaesthesia and pain relief treatments, heart and blood pressure medications, hormonal medications, cancer treatments and epilepsy medications.

So, could we prevent medication shortages if Australia made more medicines?

Why are there so many shortages?

Australia has a very small pharmaceutical manufacturing industry. It mainly makes vaccines and some generic medications (ones no longer protected by a patent). In fact, Australia imports 90% of its medications.

Most raw ingredients are also imported, including the active pharmaceutical ingredient. This is the ingredient that has a therapeutic effect, such as salbutamol to manage asthma or atorvastatin to lower cholesterol. Australia also imports the inactive ingredients known as excipients. These include fillers, bulking agents and preservatives.

Then there are medication delivery devices (such as inhalers or syringes) and packaging (which has to be sterile) to source.

A shortage in one ingredient or component – in Australia or internationally – will affect the production and supply of the finished product. This can lead to shortages.

Often, there are limited sources (or a single source) for medication components. This makes supply chains particularly vulnerable.

Australia is a small player, globally

Australia is a small market for pharmaceuticals, compared with other OECD countries.

So during a shortage of medications, raw materials or other components, suppliers prioritise larger and therefore more valuable markets.

Australia’s Pharmaceutical Benefits Scheme (PBS) has an underpinning pricing mechanism to provide affordable medicines for Australians. But this also makes the market less attractive to medication manufacturers.

Therefore, countries where markets are bigger, and offer larger profit margins, are more attractive. This restricts the type and range of medications offered to the Australian market, including when supplies are short.

Ampules of medicine on production line
Australia needs medicines, raw ingredients and sterile packaging, all of which can be in short supply. RGtimeline/Shutterstock

So could ramping up local manufacture help?

The answer is maybe.

But developing Australia’s limited pharmaceutical manufacturing would take many years to reach a level and capacity for sustainable supply.

Increasing local manufacturing would address access to some medicines. However, domestic manufacturers also need access to raw ingredients. These could also be made locally.

For pharmaceutical manufacturing to be viable and profitable in Australia there must be “economies of scale”.

Considerations include the availability of raw materials, production costs (including labour), access and availability of infrastructure and specialist facilities. To justify their investments, companies will ultimately need to sell enough product to cover these and other costs.

But Australian manufacturers struggle to achieve economies of scale due to the small domestic market. So they would need to export some of their products to supplement domestic sales.

To boost Australia’s pharmaceutical manufacturing industry, all states and territories would need a coordinated approach to planning and investment. This would also need bipartisan political support and a strategic long-term commitment.

What could we do in the short term?

Health authorities stockpiling medicines is the obvious short-term solution to Australian medication shortages. However, we’d need to carefully manage the stored medicines to ensure supply meets demand. We’d also need to make sure medicines are used before they expire. If not carefully managed, a stockpile risks unnecessary expense and waste.

Currently, state and territories manage the use of medications in their own hospitals. However, we could standardise medication use in hospitals nationally. With co-operation among states and territories this would allow manufacturers and suppliers to better plan production and distribution of medicines. Not only would this provide more certainty for suppliers, it would reduce the states and territories competing with each other for medicines in short supply.

We also need to review the pricing mechanism for medicines to make the Australian market more attractive for pharmaceutical imports. This would also help Australia move higher up the priority list when medicines are in short supply.

Authors: Peter Coomber, PhD Candidate, Pharmaceutical Supply Chains, The University of Queensland

Read more https://theconversation.com/why-doesnt-australia-make-more-medicines-wouldnt-that-fix-drug-shortages-255766

Business News

Bicycle Rack Safety and Space-Smart Storage

Bike storage problems usually show up as small annoyances first: tangled handlebars, scratched frames, and bikes that topple when you pull one out. Over time, those issues become safety risks, especia...

Daily Bulletin - avatar Daily Bulletin

How to Tell if a Childcare Centre Is a Good Fit for Your Child

Choosing childcare can feel like you’re making a huge decision with limited information. Tours are short, centres are often on their best behaviour, and your child might act differently in a new space...

Daily Bulletin - avatar Daily Bulletin

Car Import Timeline: What Usually Happens at Each Stage

Importing a car into Australia can feel confusing because multiple agencies and checkpoints are involved, and the timeline is shaped as much by paperwork quality as it is by shipping speed. The most u...

Daily Bulletin - avatar Daily Bulletin

Portable Toilet Hygiene Standards Explained: Clean vs Sanitised vs Disinfected

In portable toilet servicing, the words clean, sanitised, and disinfected often get used as if they mean the same thing. They don’t. And that difference matters because a unit can look tidy and still ...

Daily Bulletin - avatar Daily Bulletin

Options Available When a Company Faces Financial Distress

Financial distress can develop gradually or arrive suddenly, and when it does, the decisions made in the early stages often determine what options remain available later. Directors who act promptly ...

Daily Bulletin - avatar Daily Bulletin

What Healthcare Teams Look for When Choosing Specialist Surgical Supplies

In clinical environments, small details rarely stay small. A delayed instrument, a poorly matched device or inconsistent supply quality can affect theatre flow, staff confidence and patient outcomes. ...

Daily Bulletin - avatar Daily Bulletin

Reducing Sales Friction Through Centralized Content Delivery

Sales friction appears whenever buyers or sales teams face unnecessary obstacles in the buying journey. It can happen when information is hard to find, when messaging feels inconsistent, when product ...

Daily Bulletin - avatar Daily Bulletin

Why Choosing the Right Bollard Supplier Matters for Australian Businesses and Public Spaces

From busy CBD streetscapes to sprawling warehouse loading docks, bollards have become one of the most essential safety and security fixtures across Australia. Whether protecting pedestrians from veh...

Daily Bulletin - avatar Daily Bulletin

Why Modular Content Is Transforming Modern Marketing Teams

Modern marketing teams are expected to produce more content than ever before. They need to support websites, landing pages, email campaigns, social channels, product pages, sales enablement material...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

How to Choose the Right Football for Every Level

Choosing a football may seem straightforward, but the right option depends on who will be using it a...

What to Ask a Wedding Photographer Before You Book

Booking a wedding photographer can feel deceptively simple: you like the photos, you like the vibe...

Why Stress Relief For Dogs Is Essential For Emotional Balance And Long-Term Wellbeing

Managing emotional health is just as important as physical care when it comes to pets, which is why ...

Australia’s Best Walking Trails and the Shoes You Need to Tackle Them

Australia is not short on spectacular walks. You can follow ocean cliffs in Victoria, cross ancien...

Why Pre-Purchase Building Inspections Are Essential Before Buying a Home in Australia

source Have you ever walked through an open home and started picturing your furniture, family d...

5 Signs Your Car Needs Immediate Attention Before It Breaks Down

Car problems rarely appear without warning. In most cases, your vehicle gives clear signals before...

Ensuring Safety and Efficiency with Professional Electrical Solutions

For businesses in Newcastle, a safe and fully functioning workplace remains a key part of day-to-d...

Choosing The Right Bin Hire Solution For Hassle-Free Waste Management

When it comes to managing waste efficiently, finding the right solution can save both time and eff...

Why Cleanliness Is Critical In Childcare Environments

Children explore the world with curiosity, often touching surfaces, sharing toys, and interacting ...