Australia legislates lower drug prices

The Australian government passed legislation that mandates steeper price cuts to drugs on the country's Pharmaceutical Benefits Scheme (PBS). The law increases the statutory price reduction applied to a drug upon approval of the first generic or biosimilar version to 25% from 16% previously.

It also ensures that prices will decrease overtime by imposing a 5% statutory price cut once a drug has been listed on the PBS for five years, followed by additional 10% and 15% price reductions on the drug's tenth and fifteenth anniversaries, respectively...