Pharma, MedTech and Biotech sectors call on the Government to secure sustainable TGA funding

Pharma News: Medicines Australia, AusBiotech, Medical Technology Association of Australia (MTAA), BioMelbourne Network, ANDHealth, Life Sciences Queensland and Life Sciences WA have have co-signed the Federal Budget submission letter calling for improved funding of the Therapeutic Goods Administration (TGA), after the agency flagged increases in costs this year due to unexpected issues such as the regulation of cannabis and nicotine vaping products.

“The Australian Government’s cost recovery guidelines are clear that industry fees and charges should accurately reflect the fee for services provided directly to a specific individual or organisation. In addition, in its Inquiry into approval processes for new drugs and novel medical technologies in Australia, the Standing Committee on Health, Aged Care and Sport recommended that the Government “reconsider the current cost recovery funding model for the TGA”. We strongly recommend that the recent decision to fund the TGA’s digital and business transformation through increases to cost recovery arrangements is reconsidered in such a review,” the submission highlighted.

CEO of Medicines Australia, Elizabeth de Somer, said the Federal Budget is an opportunity to demonstrate the value the TGA contributes to the health of every Australian.

“The TGA plays a critical role in making sure the health products we use are safe, effective and high quality,” Ms de Somer said.

“Cost recovery (fee for service funding) is not unusual between Government and industries, and the health and medicines industry accept the requirement to pay for TGA services. However, what is unusual is that 93% of the TGA’s revenue is collected through fees and charges and only 7% of public funding is available for almost a third of the TGA’s functions.”

The small percentage of public funding does not give the TGA enough resources to provide public health functions into the long term or be able to properly support unexpected health emergencies. A recent report to Government recommended the TGA’s current cost recovery model be updated to create a more sustainable, modern approach that is in line with international practice and the evolving health and technology world.

Ms de Somer added “The TGA is well-respected globally for its role in delivering high quality regulation on lifesaving and life changing medical and health products. Government should also recognise the critical public health functions provided by the TGA by properly funding important public health measures rather than redirecting industry fees to cross-subsidise these activities.

“Establishing a public funding mechanism will enable the TGA to guarantee timely public health services for the Australian community and the ability to respond to emerging health crises into the future.”

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