Cut generics costs and save $1.3 billion: report

In its report, Australia's Bad Drug Deal, the Grattan Institute also says an independent pharmaceutical agency is needed to drive down costs.

Comparing Australia to New Zealand, which has the independent Pharmaceutical Management Agency, it found Australia's wholesale drug prices were, on average, six times higher, and in some cases 20 times more costly.

If the Pharmaceutical Benefits Scheme (PBS) adopted New Zealand prices for 62 drugs, it would save $1.1 billion, while an extra $590 million would be saved if generic substitutions were made for all 73