Eli Lilly Declines Government Subsidy for Diabetes Drug Mounjaro, Affecting 450,000 Australians

Apr 24, 2026, 07:46

Introduction

Approximately 450,000 Australian patients with Type 2 diabetes will not receive subsidized access to the weight loss medication Mounjaro, following a decision by pharmaceutical company Eli Lilly to reject a recommendation for government funding.

Main Body

The Pharmaceutical Benefits Advisory Committee (PBAC) recommended on Friday that tirzepatide, a once-weekly injectable medication marketed as Mounjaro, be listed on the Pharmaceutical Benefits Scheme (PBS) for adult patients with inadequately controlled Type 2 diabetes. The PBAC acknowledged a clinical need for additional effective treatment options, noting that some patients do not achieve adequate glycemic control with currently subsidized therapies. The committee also observed that tirzepatide is currently available through the private market and concluded that PBS listing would improve equity of access, particularly for patients for whom cost is a barrier. Under the PBS, the government negotiates a single price with pharmaceutical companies and provides the medication for a fixed co-payment of A$25 for most patients. Eli Lilly had applied to the PBAC four times for a funding arrangement. Manny Simons, Eli Lilly’s general manager for Australia and New Zealand, stated that the government’s offered price was lower than prices agreed in other countries and included conditions the company deemed “unrealistic and unviable.” The company further indicated that strict funding caps on the proposed deal would have exposed Eli Lilly to disproportionate financial risk. Simons added that the outcome would likely impede efforts to secure PBS listing for Mounjaro for other conditions, such as obesity or obesity-related diseases. The company noted that more than 100 medications recommended for subsidies have not progressed to PBS listing in the last five years. In a separate development, the PBAC recommended in December that semaglutide (sold as Wegovy) be subsidized for patients with obesity and heart disease who have experienced a heart attack, stroke, or have symptomatic peripheral arterial disease. The World Health Organization last year included Mounjaro on its list of essential medications for Type 2 diabetes and urged governments, including Australia, to make GLP-1 receptor agonist drugs more affordable for people with obesity. Federal Health Minister Mark Butler was contacted for comment but has not yet provided a response.

Conclusion

Eli Lilly’s refusal to accept the government’s funding terms means that a large cohort of Type 2 diabetes patients will continue to pay full price for Mounjaro, and the prospect of future subsidization for obesity treatment remains uncertain.

Vocabulary Learning

cohort
A group of people who share a common characteristic or experience, especially in a study or policy context群體；一組具有共同特徵或經歷的人，尤指在研究或政策背景下
Example:Eli Lilly’s refusal means that a large cohort of Type 2 diabetes patients will continue to pay full price for Mounjaro.
disproportionate
Too large or too small in relation to something else; not balanced不成比例的；與其他事物相比過大或過小；不平衡的
Example:Strict funding caps on the proposed deal would have exposed Eli Lilly to disproportionate financial risk.
equity of access
The principle that everyone should have a fair opportunity to obtain the same services or benefits公平獲取機會；指每個人都有公平機會獲得相同服務或福利的原則
Example:The committee concluded that PBS listing would improve equity of access, particularly for patients for whom cost is a barrier.
impede
To delay or prevent something from happening or progressing阻礙；延誤或阻止某事發生或進展
Example:Simons added that the outcome would likely impede efforts to secure PBS listing for Mounjaro for other conditions.
subsidized
Having part of the cost paid by the government or an organization to make it cheaper for people獲得補貼的；由政府或機構支付部分費用以降低價格的
Example:Approximately 450,000 Australian patients with Type 2 diabetes will not receive subsidized access to the weight loss medication Mounjaro.

Sentence Learning

The PBAC acknowledged a clinical need for additional effective treatment options, noting that some patients do not achieve adequate glycemic control with currently subsidized therapies.
Present participle phrase 'noting that...' adds extra information about what the PBAC did, making the sentence more concise.現在分詞短語 'noting that...' 補充說明PBAC的行為，讓句子更簡潔。
The committee also observed that tirzepatide is currently available through the private market and concluded that PBS listing would improve equity of access, particularly for patients for whom cost is a barrier.
Relative clause 'for whom cost is a barrier' specifies which patients, using formal 'whom' after a preposition.關係從句 'for whom cost is a barrier' 明確指出是哪類病人，使用正式介詞加 whom 結構。
Manny Simons, Eli Lilly’s general manager for Australia and New Zealand, stated that the government’s offered price was lower than prices agreed in other countries and included conditions the company deemed “unrealistic and unviable.”
Passive voice 'was lower than prices agreed' (past participle 'agreed' modifies 'prices') and a reduced relative clause 'the company deemed...' make the statement formal and compact.被動語態 'was lower than prices agreed'（過去分詞 agreed 修飾 prices）和省略關係代詞的從句 'the company deemed...' 使陳述正式且緊湊。
The company further indicated that strict funding caps on the proposed deal would have exposed Eli Lilly to disproportionate financial risk.
Third conditional 'would have exposed' shows a hypothetical past result, clearly linking the caps to potential risk.第三條件句 'would have exposed' 表示對過去情況的假設結果，清楚連結上限與潛在風險。
Eli Lilly’s refusal to accept the government’s funding terms means that a large cohort of Type 2 diabetes patients will continue to pay full price for Mounjaro, and the prospect of future subsidization for obesity treatment remains uncertain.
Linking word 'and' joins two related consequences; the first clause uses 'means that' to introduce a result, while the second uses 'remains uncertain' to show ongoing state.連接詞 'and' 連接兩個相關結果；第一個子句用 'means that' 引入結果，第二個子句用 'remains uncertain' 表示持續狀態。