CountryFocus: Healthcare, Regulatory and Reimbursement Landscape - Australia

  • ID: 2930913
  • Report
  • Region: Australia
  • 253 pages
  • GlobalData
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CountryFocus: Healthcare, Regulatory and Reimbursement Landscape - Australia

Summary

the publisher, the industry analysis specialist, has released its latest report, “CountryFocus: Healthcare, Regulatory and Reimbursement Landscape - Australia”. The report is an essential source of information on and analysis of the healthcare, regulatory and reimbursement landscape in Australia. It identifies the key trends in the country’s healthcare market and provides insights into its demographic, regulatory, and reimbursement landscape and healthcare infrastructure. Most importantly, the report provides valuable insights into the trends and segmentation of its pharmaceutical and medical device markets. It uses data and information sourced from proprietary databases, secondary research, and in-house analysis by our team of industry experts.

The population of Australia in 2015 was 23.86 million, having grown at a CAGR of 2% from 2008. Medicare is Australia’s public health insurance scheme, and provides free or subsidized healthcare services to the Australian population. The government is attempting to reduce the barriers to manufacturing drugs and encourage exports through the introduction of various new policies.

In 2015, the government spent $22.03 billion on R&D on medical and health science and exported $3.53 billion of pharmaceutical products. The pharmaceutical market in Australia was worth $22.30 billion in 2015 and is projected to reach $25.20 billion by 2020, at a Compound Annual Growth Rate (CAGR) of 2%. The medical device market was valued at $8.85 billion in 2015 and is projected to grow at a CAGR of 0.1% to $11.44 billion by 2020. These positive growth trends can be primarily attributed to -
- An increasingly elderly population
- Universal health coverage
- Government initiatives

Scope

The report provides information on the healthcare, regulatory, and reimbursement landscape in Australia, and includes -
- An overview of the pharmaceutical and medical device markets, comprising market size, segmentation, and key drivers and barriers
- Profiles and SWOT analyses of the major players in the pharmaceutical market: Alphapharm, Apotex, Aspen Pharmacare (Aspen), Pfizer and AstraZeneca; and profiles and SWOT analyses of the major players in the medical device market: GE Healthcare, Siemens Healthcare, Philips Healthcare, GSK and Alcon
- An insightful review of the reimbursement and regulatory landscape, with analysis covering details of the country’s healthcare reimbursement process, regulatory agencies and the approval processes for new drugs and medical devices
- Detailed analysis of the country’s political and economic environment, covering economic indicators, demographics, healthcare infrastructure and healthcare expenditure
- An overview of the opportunities for and challenges to growth in the Australian healthcare market

Reasons to buy

This report will enhance your decision-making capability by allowing you to -
- Develop business strategies by understanding the trends shaping and driving Australia’s healthcare market
- Drive revenues by understanding the key trends, reimbursement and regulatory policies, pharmaceutical market segments and companies likely to impact Australia’s healthcare market in the future
- Formulate effective sales and marketing strategies by understanding the competitive landscape and analyzing competitors’ performance
- Organize your sales and marketing efforts by identifying the market categories and segments that present the most opportunities for consolidation, investment and strategic partnership
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1.1 List of Tables

1.2 List of Figures

2 Introduction

2.1 Report Guidance

3 Overview of Pharmaceutical and Medical Device Markets

3.1 Pharmaceutical Market

3.1.1 Market Overview

3.1.2 Pharmaceutical Exports and Imports

3.1.3 Supply Channels

3.1.4 Market Segments

3.1.5 Overview of Top Five Disease Areas

3.1.6 Major Players

3.2 Medical Device Market

3.2.1 Market Overview

3.2.2 Overview of the Top Five Segments

3.2.3 Major Players

3.3 Market Drivers and Barriers

3.3.1 Drivers

3.3.2 Barriers

4 Market Access

4.1 Reimbursement and Payer Landscape

4.1.1 Overview of Healthcare System

4.1.2 Reimbursement Process

4.1.3 Overview of Insurance Providers

4.1.4 Patient Share in Healthcare Spending

4.1.5 Price Trend in Healthcare Services

4.1.6 Pricing Policies

4.2 Regulatory Landscape

4.2.1 Overview of Regulatory Agencies

4.2.2 Market Authorization Procedure for Pharmaceutical Products

4.2.3 New Medical Device Approval Process

4.2.4 Licensing Process for Pharmaceutical and Medical Device Manufacturing

4.2.5 Licensing Process for Pharmaceutical Exports and Imports

4.2.6 Intellectual Property Rights

4.2.7 Clinical Trial Regulations

4.2.8 Pharmaceutical Advertising Regulations

4.2.9 Pharmacy Regulations

4.2.10 Labeling and Packaging Regulations

5 Country Analysis

5.1 Political Environment

5.1.1 Political Structure

5.1.2 Current Political Environment

5.1.3 Healthcare Policy Initiatives

5.2 Economic Landscape

5.3 Economic Indicators

5.3.1 Gross Domestic Product

5.3.2 Gross National Income

5.3.3 Inflation

5.3.4 Currency Exchange Rate

5.3.5 Foreign Direct Investment

5.3.6 Foreign Exchange Reserves

5.3.7 Trade Balance

5.3.8 Government Structural Balance

5.3.9 Government Net Debt

5.3.10 Major Industries

5.4 Demographics

5.4.1 Population

5.4.2 Education and Literacy

5.4.3 Employment

5.4.4 Disease Burden

5.5 Healthcare Infrastructure

5.5.1 Healthcare Facilities

5.5.2 Healthcare Parameters

5.5.3 Environmental Health

5.5.4 Healthcare Personnel

5.6 Healthcare Expenditure

5.6.1 Overview

5.6.2 Major Components of Healthcare Spending

5.6.3 Public and Private Sector Share

5.6.4 Spending in Pharmaceutical Research and Development

5.7 Trade Associations

5.7.1 Australian Pharmaceutical Marketing and Research Group

5.7.2 Pharmacy Guild of Australia

5.7.3 Generic Medicines Industry Association

5.8 Trade Fairs

6 Opportunities and Challenges

6.1 Opportunities

6.2 Challenges

7 Appendix

7.1 Abbreviations

7.2 Bibliography

7.3 Research Methodology

7.3.1 Coverage

7.3.2 Secondary Research

7.3.3 Forecasts

7.3.4 Expert Panel

7.4 Disclaimer

1.1 List of Tables

Table 1: Pharmaceutical Market, Australia, Revenue ($bn), 2008-2015

Table 2: Pharmaceutical Market, Australia, Revenue ($bn), 2016-2020

Table 3: Pharmaceutical Market, Australia, Exports and Imports ($bn), 2008-2015

Table 4: Pharmaceutical Market, Australia, Pharmacy and Wholesale Mark-up (%), 2016

Table 5: Pharmaceutical Market, Australia, Biotechnology Companies, Market Capitalization, Q4 2013

Table 6: Pharmaceutical Market, Australia, Top Five Therapeutic Areas, Pharmaceutical Expenditure $bn), 2015

Table 7: Pharmaceutical Market, Australia, Major Suppliers to PBS, Market Shares (%), 2015

Table 8: Pharmaceutical Market, Alphapharm, Global, Major Products, 2016

Table 9: Pharmaceutical Market, Apotex, Global, Major Products, 2016

Table 10: Pharmaceutical Market, Apotex, Global, Late-Stage Pipeline, 2016

Table 11: Pharmaceutical Market, Aspen, Global, Major Products, 2016

Table 12: Pharmaceutical Market, Pfizer, Global, Major Products, 2015

Table 13: Pharmaceutical Market, Pfizer, Global, Planned Filings, 2015

Table 14: Pharmaceutical Market, AstraZeneca, Global, Major Products, 2016

Table 15: Pharmaceutical Market, AstraZeneca, Global, Late-Stage Pipeline, 2016

Table 16: Medical Device Market, Australia, Revenue ($bn), 2008-2015

Table 17: Medical Device Market, Australia, Revenue ($bn), 2016-2020

Table 18: Medical Device Market, Australia, Revenue by Segment, 2015

Table 19: IVD Market, Australia, Revenue ($m), 2008-2015

Table 20: IVD Market, Australia, Revenue ($m) and Market Share (%) of Major Players, 2014

Table 21: Orthopedic Device Market, Australia, Revenue ($m), 2008-2015

Table 22: Orthopedic Device Market, Australia, Revenue ($m) and Market Share (%) of Major Players, 2015

Table 23: Cardiovascular Device Market, Australia, Revenue ($m), 2008-2015

Table 24: Cardiovascular Device Market, Australia, Revenue ($m) and Market Share (%) of Major Players, 2014

Table 25: Diagnostic Imaging Market, Australia, Revenue ($m), 2008-2015

Table 26: Diagnostic Imaging Market, Australia, Revenue ($m) and Market Share (%) of Major Players, 2012

Table 27: Ophthalmic Device Market, Australia, Revenue ($m), 2008-2015

Table 28: Ophthalmic Device Market, Australia, Revenue ($m) and Market Share (%) of Major Players, 2012

Table 29: Medical Device Market, Australia, Revenue ($m) and Market Share (%) of Major Players, 2012

Table 30: GE Healthcare, Global, Major Products, 2015

Table 31: GE Healthcare, Global, Pipeline Products, 2015

Table 32: Siemens Healthcare, Global, Major Products, 2015

Table 33: Philips Healthcare, Global, Major Products, 2015

Table 34: Major Products, Alcon, Major Products, 2015

Table 35: Market Access, Australia, Private Health Insurance Rate (%), 2014

Table 36: Market Access, Australia, Private Insurance Coverage Population (million), 2008-2015

Table 37: Healthcare Spending, Australia, Out-of-Pocket Expenditure (%), 2008-2015

Table 38: Market Access, Australia, Total Health Price Index (%), 2008-2014

Table 39: Market Access, Australia, Classification of Medical Devices, 2016

Table 40: Market Access, Australia, Conformity Assessment of a Medical Device, 2016

Table 41: Market Access, Australia, Regulation of Advertising of Therapeutic Goods, Australia, 2016

Table 42: Economic Indicators, Australia, Gross Domestic Product per Capita ($), 2008-2015

Table 43: Economic Indicators, Australia, Gross Domestic Product per Capita ($), 2016-2020

Table 44: Economic Indicators, Australia, Gross Domestic Product Annual Growth (%), 2008-2015

Table 45: Economic Indicators, Australia, Gross Domestic Product Annual Growth (%), 2016-2020

Table 46: Economic Indicators, Australia, Gross National Income per Capita ($), 2008-2014

Table 47: Economic Indicators, Australia, Average Consumer Price Index, 2008-2015

Table 48: Economic Indicators, Australia, Average Consumer Price Index, 2016-2020

Table 49: Economic Indicators, Australia, Average Consumer Price, Annual Change (%), 2008-2015

Table 50: Economic Indicators, Australia, Average Consumer Price, Annual Change (%), 2016-2020

Table 51: Economic Indicators, Australia, Currency Exchange Rate (AUD/$), 2008-2015

Table 52: Economic Indicators, Australia, Foreign Direct Investment ($bn), 2008-2014

Table 53: Economic Indicators, Australia, Foreign Exchange Reserves ($bn), 2008-2015

Table 54: Economic Indicators, Australia, Imports of Goods and Services ($bn), 2008-2014

Table 55: Economic Indicators, Australia, Exports of Goods and Services ($bn), 2008-2014

Table 56: Economic Indicators, Australia, General Government Structural Balance ($bn), 2008-2015

Table 57: Economic Indicators, Australia, General Government Net Debt (% of GDP), 2008-2015

Table 58: Economic Indicators, Australia, General Government Net Debt (% of GDP), 2016-2020

Table 59: Economic Indicators, Australia, Major Industries, Industry Value Added ($m), 2014-2015

Table 60: Demographics, Australia, Population (million), 2008-2015

Table 61: Demographics, Australia, Population (million), 2016-2020

Table 62: Demographics, Australia, Population, Urban and Rural Population Share (%), 2008-2015

Table 63: Demographics, Australia, Population, Urban and Rural Population Share Forecast (%), 2016-2020

Table 64: Demographics, Australia, Population Distribution by Age Group (%), 2008-2015

Table 65: Demographics, Australia, Population Distribution by Age Group (%), 2016-2020

Table 66: Demographics, Australia, Births (per 1,000 population), 2008-2015

Table 67: Demographics, Australia, Mortality (per 1,000 population), 2008-2015

Table 68: Demographics, Australia, Major Causes of Mortality, 2014

Table 69: Demographics, Australia, Mortality Rate of Children under Five (per 1,000 Live Births), 2008-2015

Table 70: Demographics, Australia, Immunization Rate (%), 2008-2015

Table 71: Demographics, Australia, Major Causes of Male Mortality (%), 2014

Table 72: Demographics, Australia, Major Causes of Female Mortality (‘000), 2014

Table 73: Demographics, Australia, Gender Ratio (M/F), 2008-2015

Table 74: Demographics, Australia, Life Expectancy at Birth (years), 2008-2015

Table 75: Demographics, Australia, Student Enrollment by Level of Education (% of Gross), 2008-2015

Table 76: Demographics, Australia, Overseas Students, 2015

Table 77: Demographics, Australia, Unemployment Rate (%), 2008-2013

Table 78: Major Diseases, Australia, Disability-Adjusted Life Years (as % of Total Burden), 2011

Table 79: Healthcare Infrastructure, Australia, Public and Private Hospitals, 2008-2015

Table 80: Healthcare Infrastructure, Australia, Public Acute and Psychiatric Hospitals (per 1,000 population), 2008-2015

Table 81: Healthcare Infrastructure, Australia, Private Free-Standing Day and Other Private Hospitals (per 1,000 population), 2008-2015

Table 82: Healthcare Infrastructure, Australia, Diagnostic Equipments (per million population), 2008-2013

Table 83: Healthcare Infrastructure, Australia, Hospital Beds (per 1,000 population), 2008-2015

Table 84: Healthcare Infrastructure, Australia, Public Hospital Beds by Type of Care (per 1,000 population), 2008-2015

Table 85: Healthcare Infrastructure, Australia, Doctors (per 100,000 population), 2008-2015

Table 86: Healthcare Infrastructure, Australia, PM10 (µg/m3), 2008-2015

Table 87: Healthcare Infrastructure, Australia, CO2 Emissions (million metric tons), 2008-2015

Table 88: Healthcare Infrastructure, Australia, Nurses (per 1,000 population), 2008-2015

Table 89: Healthcare Infrastructure, Australia, Pharmacists (per 1,000 population), 2008-2015

Table 90: Healthcare Infrastructure, Australia, Dentists (per 1,000 population), 2008-2015

Table 91: Healthcare Expenditure, Australia, Healthcare Expenditure (% of GDP), 2008-2015

Table 92: Healthcare Expenditure, Australia, Share of Major Components (%), 2014

Table 93: Healthcare Expenditure, Australia, Public-Private Share ($ per capita), 2008-2015

Table 94: Healthcare Expenditure, Australia, Pharmaceutical R&D ($bn), 2008-2015

Table 95: Healthcare Expenditure, Australia, Major Healthcare Trade Fairs, 2016

1.2 List of Figures

Figure 1: Pharmaceutical Market, Australia, Revenue ($bn), 2008-2015

Figure 2: Pharmaceutical Market, Australia, Revenue ($bn), 2016-2020

Figure 3: Pharmaceutical Market, Australia, Exports and Imports ($bn), 2008-2015

Figure 4: Pharmaceutical Market, Australia, Distribution Channels, 2016

Figure 5: Pharmaceutical Market, Australia, Top Five Therapeutic Areas, Pharmaceutical Expenditure ($bn), 2015

Figure 6: Pharmaceutical Market, Australia, Major Suppliers to PBS, Market Share (%), 2015

Figure 7: Medical Device Market, Australia, Revenue ($bn), 2008-2015

Figure 8: Medical Device Market, Australia, Revenue ($bn), 2016-2020

Figure 9: Medical Device Market, Australia, Revenue by Segment ($m), 2015

Figure 10: IVD Market, Australia, Revenue ($m), 2008-2015

Figure 11: IVD Market, Australia, Market Share of Major Players (%), 2014

Figure 12: Orthopedic Device Market, Australia, Revenue ($m), 2008-2015

Figure 13: Orthopedic Device Market, Australia, Market Share of Major Players (%), 2015

Figure 14: Cardiovascular Device Market, Australia, Revenue ($m), 2008-2015

Figure 15: Cardiovascular Device Market, Australia, Market Share of Major Players (%), 2014

Figure 16: Diagnostic Imaging Market, Australia, Revenue ($m), 2008-2015

Figure 17: Diagnostic Imaging Market, Australia, Market Share of Major Players (%), 2012

Figure 18: Ophthalmic Device Market, Australia, Revenue ($m), 2008-2015

Figure 19: Ophthalmic Device Market, Australia, Market Share of Major Players (%), 2012

Figure 20: Medical Device Market, Australia, Revenue of Major Players ($m), 2012

Figure 21: Healthcare Market, Australia, Drivers and Barriers, 2016

Figure 22: Healthcare System, Australia, Therapeutic Goods Administration, 2016

Figure 23: Healthcare System, Australia, Pharmaceuticals and Devices Reimbursement Process, 2014

Figure 24: Healthcare System, Australia, Pharmaceuticals Reimbursement Process, 2014

Figure 25: Healthcare System, Australia, Medical Devices Reimbursement Process, 2014

Figure 26: Market Access, Australia, Private Insurance Coverage Population (million), 2008-2015

Figure 27: Healthcare Spending, Australia, Out-of-Pocket Expenditure (%), 2008-2015

Figure 28: Market Access, Australia, Total Health Price Index (%), 2008-2014

Figure 29: Market Access, Australia, Registration Process Regulatory Phases, 2016

Figure 30: Market Access, Australia, Class I Non-sterile and Non-measuring Device Supply Process, 2016

Figure 31: Market Access, Australia, Supply Process for Medical Device Manufactured in Australia, 2016

Figure 32: Market Access, Australia, Supply Process for Medical Device Manufactured Overseas, 2016

Figure 33: Market Access, Australia, Supply Process for Medical Device Containing Medicine or Materials of Animal, Microbial Recombinant or Human Origin, 2016

Figure 34: Market Access, Australia, Patent Approval Process, 2015

Figure 35: Market Access, Australia, Trademark Approval Process, 2015

Figure 36: Economic Indicators, Australia, Gross Domestic Product per Capita ($), 2008-2015

Figure 37: Economic Indicators, Australia, Gross Domestic Product per Capita ($), 2016-2020

Figure 38: Economic Indicators, Australia, Gross Domestic Product Annual Growth (%), 2008-2015

Figure 39: Economic Indicators, Australia, Gross Domestic Product Annual Growth (%), 2016-2020

Figure 40: Economic Indicators, Australia, Gross National Income per Capita ($), 2008-2014

Figure 41: Economic Indicators, Australia, Average Consumer Price Index, 2008-2015

Figure 42: Economic Indicators, Australia, Average Consumer Price Index, 2016-2020

Figure 43: Economic Indicators, Australia, Average Consumer Price, Annual Change (%), 2008-2015

Figure 44: Economic Indicators, Australia, Average Consumer Price, Annual Change (%), 2016-2020

Figure 45: Economic Indicators, Australia, Currency Exchange Rate (AUD/$), 2008-2015

Figure 46: Economic Indicators, Australia, Foreign Direct Investment ($bn), 2008-2014

Figure 47: Economic Indicators, Australia, Foreign Exchange Reserves ($bn), 2008-2015

Figure 48: Economic Indicators, Australia, Imports of Goods and Services ($bn), 2008-2014

Figure 49: Economic Indicators, Australia, Exports of Goods and Services ($bn), 2008-2014

Figure 50: Economic Indicators, Australia, General Government Structural Balance ($bn), 2008-2015

Figure 51: Economic Indicators, Australia, General Government Net Debt (% of GDP), 2008-2015

Figure 52: Economic Indicators, Australia, General Government Net Debt (% of GDP), 2016-2020

Figure 53: Economic Indicators, Australia, Major Industries, Industry Value Added ($m), 2014-2015

Figure 54: Demographics, Australia, Population (million), 2008-2015

Figure 55: Demographics, Australia, Population (million), 2016-2020

Figure 56: Demographics, Australia, Population, Urban and Rural Population Share (%), 2008-2015

Figure 57: Demographics, Australia, Population, Urban and Rural Population Share (%), 2016-2020

Figure 58: Demographics, Australia, Population Distribution by Age Group (%), 2008-2015

Figure 59: Demographics, Australia, Population Distribution by Age Group (%), 2016-2020

Figure 60: Demographics, Australia, Births (per 1,000 population), 2008-2015

Figure 61: Demographics, Australia, Mortality (per 1,000 population), 2008-2015

Figure 62: Demographics, Australia, Major Causes of Mortality (%), 2014

Figure 63: Demographics, Australia, Mortality Rate of Children under Five (per 1,000 live births), 2008-2015

Figure 64: Demographics, Australia, Immunization Rate (%), 2008-2015

Figure 65: Demographics, Australia, Major Causes of Male Mortality (%), 2014

Figure 66: Demographics, Australia, Major Causes of Female Mortality (%), 2014

Figure 67: Demographics, Australia, Gender Ratio (M/F), 2008-2015

Figure 68: Demographics, Australia, Life Expectancy at Birth (years), 2008-2015

Figure 69: Demographics, Australia, Student Enrollment by Level of Education (% of Gross), 2008-2015

Figure 70: Demographics, Australia, Overseas Student (%), 2015

Figure 71: Demographics, Australia, Unemployment Rate (%), 2008-2015

Figure 72: Major Diseases, Australia, Disability-Adjusted Life Years (as % of Total Burden), 2011

Figure 73: Healthcare Infrastructure, Australia, Public and Private Hospitals, 2008-2015

Figure 74: Healthcare Infrastructure, Australia, Public Acute and Psychiatric Hospitals (per 1,000 population), 2008-2015

Figure 75: Healthcare Infrastructure, Australia, Private Free-Standing Day and Other Private Hospitals (per 1,000 population), 2008-2015

Figure 76: Healthcare Infrastructure, Australia, Diagnostic Equipments (per million population), 2008-2015

Figure 77: Healthcare Infrastructure, Australia, Hospital Beds (per 1,000 population), 2008-2015

Figure 78: Healthcare Infrastructure, Australia, Hospital Beds by Type of Care (per 1,000 population), 2008-2015

Figure 79: Healthcare Infrastructure, Australia, Doctors (per 1,000 population), 2008-2015

Figure 80: Healthcare Infrastructure, Australia, PM2.5 (µg/m3), 2008-2015

Figure 81: Healthcare Infrastructure, Australia, CO2 Emissions (million metric tons), 2008-2015

Figure 82: Healthcare Infrastructure, Australia, Nurses (per 1,000 population), 2008-2015

Figure 83: Healthcare Infrastructure, Australia, Pharmacists (per 1,000 population), 2008-2015

Figure 84: Healthcare Infrastructure, Australia, Dentists (per 1,000 population), 2008-2015

Figure 85: Healthcare Expenditure, Australia, Healthcare Expenditure (% of GDP), 2008-2015

Figure 86: Healthcare Expenditure, Australia, Major Components (%), 2014

Figure 87: Healthcare Expenditure, Australia, Public-Private Share ($ per capita), 2008-2015

Figure 88: Healthcare Expenditure, Australia, Pharmaceutical R&D ($bn), 2008-2015

Figure 89: Healthcare Market, Australia, Opportunities and Challenges, 2016
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The Australian healthcare market is a mature market driven by universal healthcare coverage and good access to facilities such as government-subsidized medicines. The growing elderly population and its associated disease burden, well-defined regulatory guidelines, the usage of substitute drugs and the introduction of a new manufacturing policy will drive the growth of the pharmaceutical market in future. However, a focus on generic substitution and price cuts will restrict the growth of the market.

The pharmaceuticals market in Australia was worth approximately $18 billion in 2008. This total is expected to reach approximately $32 billion in 2020, increasing at a Compound Annual Growth Rate (CAGR) of 5.1% (Department of Industry, 2013a). The segments that dominated the market in 2013 were the drugs for the diseases of the Central Nervous System (CNS), cardiovascular, and respiratory system.

In June 2013, the largest firm by Pharmaceutical Benefits Scheme (PBS) sales was Pfizer, with sales equivalent to 12.4% of the value of total sales made to the PBS. The leading 10 suppliers by sales contributed more than 67% of the value of total sales made to the PBS. In June 2013, Alphapharm was the largest firm in terms of the number of prescriptions dispensed under the PBS, accounting for 13.3% (PBS, 2013).

The population of Australia amounted to approximately 23.2 million in 2013, having grown at a CAGR of 1.6% from 2008. The elderly population is increasing in size and, as of 2013, accounted for 14.5% of the entire population. This population segment is growing at higher rate (3.6%) than the global average of 2.8% and the European average of 1.4% (UN, 2013). The prevalence of non-communicable diseases, such as cardiovascular disease, respiratory, metabolic disorder and cancer, has increased due to an increasingly sedentary way of life.

In 2013, the government spent approximately $1 billion on R&D on medical and health science and exported $3.8 billion in pharmaceuticals. The government is taking initiatives to reduce the barriers restricting the manufacture of drugs and encourage exports by introducing new policies.

Medicare, which is Australia’s public health insurance scheme, provides free or subsidized healthcare services to the Australian population. The PBS component of Medicare provides access to a wide range of necessary and cost-effective prescription medicines. Medicare is funded primarily from general taxes and the Medicare Levy, which is based on taxable income.

The increasing generic substitution and cost-cutting measures adopted by the government have had a negative impact on market growth. Since 2012, the government has reduced the prices of medicines listed on the PBS eight times, by percentages ranging from 1% to 90% (PBS, 2014a). On April 1, 2012, the biggest cut on the prices of medicines listed on the PBS was introduced, and the prices of approximately 1,000 brands of 60 popular prescription medicines were reduced (Maiden, 2012). Generic substitution by pharmacists has been permitted since 1994 and has reduced the overall value of the pharmaceutical market.

The value of the Australian medical devices market amounted to $5.9 billion in 2008 and is expected to grow at a CAGR of 4.9% to reach an estimated $10.4 billion in 2020. Major segments in the medical devices market in 2013 were In Vitro Diagnostics (IVD) with a 15.5% share, orthopedic devices with 13.2%, and ophthalmic devices with 9.6%. The market is driven by factors such as increasing awareness regarding early detection and diagnosis of disease, advancements in medical technology, and an increase in the size of the elderly population.
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