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Pharmaceuticals are an integral component of a high quality healthcare system in Australia.
Advances in pharmaceutical technologies have contributed to substantial improvements in
Australians’ quality of life and life expectancy. New medicines have contributed to a
significant increase in cancer survival rates, a reduction in deaths from cardiovascular
disease and the effective eradication of many infectious diseases that were once the primary
burden of disease for Australians. Improvements in the health and welfare of patients have
supported increased labour force participation and productivity, which in turn have generated
major returns to communities in the form of economic growth. Moreover, treatment of
disease with pharmaceuticals has been highly cost-effective; research has shown that for
every US$1 increase in spending on medicines there has been a US$3.65 saving in hospital
care expenditure. This has facilitated the efficient allocation of scarce public funds, which
has, and continues to contribute to the strong economic growth and prosperity of Australian
communities.

As a consequence of the potential for significant improvements in patients’ quality of life
and their relative cost-effectiveness as a therapy, the use of pharmaceuticals in Australia has been increasing rapidly, with pharmaceuticals accounting for an increasing proportion of total health expenditure. Pharmaceuticals currently account for more than 13 per cent of total healthcare expenditure ($11.5 billion) and are projected to grow significantly over the
coming decades. Pharmaceutical expenditure accounts for 0.7 per cent of GDP today and is
projected to grow to 2.5 per cent of GDP by 2046-47 by the 2007 Intergenerational Report.....계속