Two weeks until the Abbott Government delivers its second Budget and speculation is building over the fate of several key policy areas.
Comments from Health Minister Sussan Ley suggest the Government remains committed to the Medical Research Future Fund (MRFF).
The MRFF was announced in last year's Budget as a $20 billion endowment funded from savings measures in the health portfolio.
The political failure of several measures, notably the proposed Medicare GP co-payment, has raised doubts over the future of the MRFF, which is designed to provide around $1 billion in additional annual funding for health and medical research from 2020.
However, Ms Ley has confirmed that new savings from the health portfolio, potentially from the recently announced review of Medicare item numbers and even the PBS, will be directed to the MRFF.
“This country has built an enormous reputation on medical research and that fund is a great commitment of the Coalition and we’ll see it set up and stand up soon,” Ms Ley told Sky News.
Ms Ley has also confirmed that the Pharmaceutical Benefits Scheme will be targeted for savings, speculated to be in the range of $3 billion over the forward estimates.
One area thought to be targeted for reform is the reimbursement of biosimilars.
BiotechDispatch understands that the Pharmaceutical Benefits Advisory Committee, which is responsible for advising the Health Minister on drug-funding decisions, considered the substitution of biosimilars for their reference biologic at its special meeting on 17 April.
The Committee is speculated to have advised Ms Ley to scrap current guidelines that advise against the substitution of biosimilars for their reference biologic, with the potential that its consideration of all future biosimilars will start from the basis of allowing substitution.
Adopting a policy that automatically allows substitution would not only represent a significant shift from current guidelines, but also position Australia at the very edge of biosimilar policy globally, as well as potentially generate significant savings.
The Therapeutic Goods Administration recently announced a review of how it evaluates biosimilars.
In its pre-Budget submission, AusBiotech called for further tax reform with incentives for innovative companies and high-tech manufacturing , clinical trials reform and support for commercialisation.