Australia: Analysing pharmacoeconomics and patent practice in Australia

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Australia: Analysing pharmacoeconomics and patent practice in Australia

Sponsored by

griffithhack-400px.jpg
australia-pharmaeconomics.jpg

Despite being a market of only 26 million people, Australia possesses a world-class healthcare system and well regarded scientific community. This is most recently demonstrated through the participation of Australian scientists in the race to successfully manufacture a COVID-19 vaccine, and by the low infection death rates from the current pandemic in Australia.

The pharmaceutical benefits scheme

To access the Australian market widely, in addition to marketing approval, listing a new therapeutic on the pharmacoeconomically driven Pharmaceutical Benefits Scheme (PBS) is highly desirable. This government programme enables Australians to access listed therapeutics at heavily subsidised prices (after government negotiation with a sponsor). Under the scheme the price of the originator therapeutic is compulsorily reduced at the expiry of specified periods and when a generic competitor obtains its own PBS listing.

The Australian government actively participates in patent litigation

A legal tussle between the Australian government and an originator (relating to efforts by the originator dating back over 12 years to prevent a generic market entrant) underscores the significance of the PBS as a market moderator. In Commonwealth of Australia v Sanofi (formerly Sanofi-Aventis) (No 5) [2020] FCA 543 the Australian government sought to recoup the subsidies Sanofi received while it was able to stop (via an interlocutory injunction) a generic competitor product to Sanofi's clopidogrel, from entering the market. When the patent was ultimately found to be invalid, the government sought to take advantage of the usual undertaking as to damages given by Sanofi to the court, in return for the interlocutory injunction.

To date, the Commonwealth has been unsuccessful in its claim, but the decision may yet be appealed. Another similar claim by the government relating to aripiprazole is still pending, and two further claims have been settled. There is reason to believe that the clopidogrel matter may be confined to the facts of the case. But the vigour with which the government has pursued the case, together with the time and costs of getting new therapeutics to market, suggests that back-up protection for new therapeutic products in Australia is worth considering.

Protecting further medical indications

New chemical or biological forms, new formulations and methods of treatment for first line indications as well as second and further indications and dosage regimes (deriving from clinical trials for example) are all patentable in Australia.

Some difficulties may arise where delivery of a therapeutic for a first indication might be said to inherently treat a second or further indication or regime therefore destroying novelty or inventive step of a later claim. However, recent developments at the Patent Office indicate that even where the site of treatment is the same, careful choice of claim language can overcome the collision of new claims with a patentee's own earlier prior art.

Post-grant amendments

Another, perhaps less obvious strategy is to take steps to mitigate against the risk of patent invalidity. In the past, patentees have commonly considered post grant amendment after legal proceedings have commenced. However, Australian courts have more recently, been less inclined to exercise the discretion available to them in favour of patentees when amendment is sought as part of a broader infringement and invalidity proceeding. Where a patent is clearly a critical asset guarding market access, an early and regular strategic review of its robustness (and considered anticipatory amendments) may be money well spent.

Final consideration

While Australia remains an attractive destination for patentees, careful thought as to patent strategy is required to negotiate Australia's relatively complex regulatory, demographic and socioeconomic environment.

Karen Sinclair

more from across site and SHARED ros bottom lb

More from across our site

AIPPI has pulled the plug on its planned 2027 World Congress, and INTA has seemingly committed to hosting a meeting there, but the concerns won’t abate
Despite being outspent by a wealthy opponent, a trial attorney at King & Spalding says ‘relentless pursuit of the truth’ helped his team secure a $420m damages award for mobile gaming client
190 drugs face loss of exclusivity between 2026 and 2030, with the list including Bristol Myers Squibb’s blood-thinning drug Eliquis and immunotherapy medication Opdivo
Nokia, represented by a team from Bird & Bird, adjudged to have made fair offer to Asus and Acer in UK SEP dispute
Azhar Sadique and Kane Ridley, who founded the London office in 2023, are now both working in legal tech and AI-related roles, while another UK-based lawyer has also left
Partner Pierre Pérot rejoins the firm he left in 2022 alongside another returning lawyer, associate Camille Abba
Vaping dispute, in which Stobbs and Brandsmiths are the representatives, tested how the UK's Human Rights Act can apply to injunctions restraining unjustified threats
An AI platform being sold for £40m, and lateral hires involving law firms Womble Bond Dickinson and Cadwell Thomas were among the top talking points
With the London Annual Meeting behind us, we look back at some of the lessons learned this week and ahead to what 2027 will bring
In-house counsel aren’t impressed with law firms’ international networks, but practitioners say they are crucial for business
Gift this article