Pharmaceuticals in Australia





The pharmaceutical industry in 1999, had a turnover of $5 billion.  It is represented by the Australian Pharmaceutical Manufacturers Association. 

Most pharmaceutical manufacturing activities in Australia are underpinned by Commonwealth Government assistance for pharmaceutical activities to offset the consequence of the monopsonist position of the Government. Pharmaceuticals included in the Pharmaceuticals Benefits Scheme are supplied in Australia at substantially lower prices than in other developed countries precluding competitive domestic manufacture. To offset this disadvantage, the Commonwealth Government has introduced investment incentives; initially the "Factor (f)" Scheme replaced by the Pharmaceutical Industry Investment Program. 

Under the Pharmaceutical Industry Investment Program, nine companies will share in government grants of more than $300 million in exchange for agreements to commit at least $1.5 billion to research and development (R&D) and production value added (PVA).

Details at government site.

bulletCSL Limited receives $60 million and will increase its R&D and PVA by at least $300 million, creating more than 400 jobs. bulletD F.H. Faulding receives $40.3 million and will introduce projects in Australia and invest in capital programs and additional jobs. bulletBristol-Myers Squibb Pharmaceuticals receives $39 million to double its existing R&D and increase PVA by about $155 million, creating 200 jobs. bulletPfizer receives $38.9 million to increase R&D and PVA by at least $194 million, creating 100 jobs. bulletPharmacia & Upjohn receives $33.9 million to increase R&D and PVA by at least $169 million, creating 65 jobs. bulletGlaxo-Wellcome receives $27 million to boost R&D and PVA by $237 million. bulletAMRAD Corporation receives more than $24 million in return for R&D expenditure of $120 million over the next five years and PVA of $228 million. bulletEli Lilly receives $19.9 million in return for boosting R&D by at least $99.5 million. bulletJanssen-Cilag, part of the Johnson & Johnson group, receives $17.5 million for an increase in R&D and PVA of at least $87 million. It will create at least 130 jobs.

Few activities however synthesise pharmaceuticals - nearly all import the active ingredients. 


See discussion on alkaloid manufacture in Tasmania which produces one-half the world's production.

bulletGlaxo-Welcome produces poppy alkaloids in Tasmania which is processed at Port Fairey Victoria by processing to pure morphine and some methylation. bulletTasmanian Alkaloids operating at Westbury Tasmania (owned by Johnson&Johnson) exports crude morphine for processing in the USA. bulletAMRAD bulletBiota bulletAstra

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