Big pharma threatens govt

The government is buying into a potentially painful budget fight by hitting Big Pharma to achieve its health savings goal.

While Health Minister Sussan Ley says the plan will cut patients’ medication costs overall, the proposed 5% hit to expensive, cutting-edge drugs has riled the drug lobby.

Medicines Australia CEO Tim James says his membership of 55 drug manufacturers will not accept the “hasty and arbitrary” price cuts, warning there will be “grave and unintended consequences”.