Australia is coming under increasing pressure from international drug companies demanding higher prices for their drugs.

In some cases, negotiations have broken down and companies have said they’ll withdraw their drugs from the market. In other cases, companies have said they’ll not apply for their drug to be listed on the Pharmaceutical Benefits Scheme (PBS) at all.

For example, the future of some PBS drugs for multiple sclerosis has been in doubt after pricing disagreements between the drug companies and the Australian government. These medicines will now remain on the PBS while a review of multiple sclerosis drugs takes place.

Earlier this year, drug company Eli Lilly said it would not apply to have its drug tirzepatide (Mounjaro) listed on the PBS for type 2 diabetes after price negotiations broke down.

So what’s really going on in the background? And where does that leave Australians’ access to subsidised medicines, now and into the future?

First the UK, then Australia?

United States drug companies have long sought higher prices for their drugs in international markets.

US President Donald Trump has stepped in to blame other countries for forcing drugs companies to accept lower prices.

We were subsidizing others’ healthcare […] it was really the countries that forced Big Pharma to do things that frankly, I’m not sure they really felt comfortable doing [that].

We were subsidizing others’ healthcare […] it was really the countries that forced Big Pharma to do things that frankly, I’m not sure they really felt comfortable doing [that].

The US-UK trade deal on pharmaceuticals, announced in December 2025, is the first major surrender to this pressure.

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