Drug Company Says No to Government Help for Diabetes Medicine
Drug Company Says No to Government Help for Diabetes Medicine
Introduction
A big drug company said no to a government plan. The plan was to help people pay for a diabetes medicine. About 450,000 people in Australia will not get this help.
Main Body
A group of experts said the medicine should get government help. The medicine is for people with Type 2 diabetes. It is a shot people take one time each week. Some people cannot control their diabetes with other medicines. The medicine costs a lot of money now. The government wanted to make it cheaper. The drug company said the government''s price was too low. The company said other countries pay more. The company also said the government''s rules were not good. The company tried four times to make a deal. The company said many other medicines did not get government help in the last five years. Another medicine for weight loss got a different recommendation. The World Health Organization said the medicine is important. The health minister did not answer questions.
Conclusion
The drug company did not accept the government''s offer. So many people with diabetes will pay full price for the medicine. It is not clear if the medicine will get help for weight loss in the future.
Vocabulary Learning
Sentence Learning
Eli Lilly Declines Government Subsidy for Diabetes Drug Mounjaro, Affecting 450,000 Australians
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
Sentence Learning
Eli Lilly Declines Government Subsidy for Diabetes Drug Mounjaro, Affecting 450,000 Australians
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.