AUS
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IND
Highlights
- Mounjaro's PBS Listing Push: Eli Lilly aims to secure government subsidies for Mounjaro on the Pharmaceutical Benefits Scheme (PBS), targeting obesity-related health risks.
- Economic and Healthcare Implications: Advocates highlight potential healthcare savings by reducing obesity-related diseases, despite high drug costs.
- Regulatory Challenges and Global Comparisons: Australia's cautious approach contrasts with the UK's progressive inclusion of weight-loss drugs on public healthcare plans.
Efforts to address obesity through subsidised pharmaceuticals have intensified, with American pharmaceutical giant Eli Lilly proposing the inclusion of Mounjaro on Australia's Pharmaceutical Benefits Scheme (PBS). The drug, widely used for weight management, competes with Novo Nordisk’s Ozempic and Wegovy in a growing market of GLP-1 receptor agonists.
The Proposal and Context
Eli Lilly plans to submit a formal application for PBS inclusion by mid-next year. The proposed subsidy targets a specific group of individuals with severe obesity and associated health risks, avoiding broader use for general weight management. Advocates argue that increased accessibility to these drugs could alleviate the healthcare burden posed by obesity-related illnesses, including heart disease, diabetes, and kidney failure.
Global Comparisons
The initiative follows the UK’s decision to make Mounjaro available through the National Health Service (NHS) under stringent conditions. British regulators approved the drug for individuals with a BMI over 35, coupled with at least one weight-related condition, to be introduced alongside dietary and exercise programs. The phased rollout aims to manage costs and ensure sustainable healthcare funding.
Australia's Stance and Challenges
Australia has yet to match the UK's progressive approach. The Pharmaceutical Benefits Advisory Committee (PBAC), responsible for PBS recommendations, has previously rejected Novo Nordisk’s Wegovy for obesity treatment. Eli Lilly’s submission will test the willingness of Australian regulators to embrace these new-generation weight-loss drugs.
General Manager for Australia and New Zealand at Eli Lilly, Tori Brown, expressed optimism about the growing recognition of obesity as a medical issue requiring pharmacological intervention. Brown underscored the company’s commitment to collaborating with stakeholders to advance funding for anti-obesity medications.
Economic and Healthcare Implications
The high cost of these drugs, ranging from $345 to $645 monthly, poses a significant barrier. Advocates argue that subsidising these medications could reduce long-term healthcare expenditures by mitigating obesity-related diseases. However, concerns about the financial sustainability of funding these drugs persist. Options such as capping government-subsidised prescriptions are being explored to balance accessibility and budgetary constraints.
Eucalyptus and Industry Insights
Eucalyptus, a telehealth company backed by Woolworths (ASX:WOW), has called for innovative approaches to integrate weight-loss drugs into public healthcare. The company highlighted disparities in access due to the high costs, urging Australian authorities to adopt more inclusive policies.
Clinical Director Matt Vickers criticised Australia’s regulatory reluctance, contrasting it with the UK’s proactive measures. Vickers emphasised the importance of combining pharmacological solutions with technology and advanced healthcare strategies to maximise effectiveness.
Clinical Evidence and Industry Skepticism
Recent clinical trials have shown Mounjaro achieving average weight loss of 20.2%, outperforming Wegovy at 13.7%. However, experts caution that pharmaceutical-sponsored studies may introduce bias. Regulators remain cautious, demanding real-world evidence to complement clinical data.
Conclusion
The push for weight-loss drugs like Mounjaro to be included on PBS marks a critical juncture in addressing obesity in Australia. While proponents highlight the long-term economic and health benefits, regulatory challenges and financial implications necessitate a balanced approach. The upcoming submission by Eli Lilly, set for mid-2025, could redefine access to obesity treatment and its impact on public health.
