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

Apple’s lawsuit against OpenAI, which features Tier 1-ranked disputes firms on both sides, reflects how trade secrets litigation is becoming a prominent competition feature
Drew & Napier’s leadership appointments show one way full-service firms can back up claims about the strategic importance of IP
Strike-out application will hear claims that the copyright aspect of an IP infringement claim brought by a gambling and sports betting group should be dropped
Amongst a sea of mergers, Lathrop GPM and HG Law have set out plans to combine, positioning themselves to compete with both IP boutiques and full-service firms
Patrícia Paias explains why she loves the science and business behind an idea and why potential rights owners must avoid the ‘file and forget’ philosophy
Lawyers eagerly await news of what IP specialist Sir Colin Birss will bring to one of the England and Wales judiciary’s most important roles
María Aurora García of Berken IP explains how intellectual property rights holders can use customs monitoring and online enforcement tools to identify parallel imports and support compliance with consumer protection rules
The Jakarta-based firm says personal networks and a distinctive strategy can help it guide foreign clients through what can be a tricky IP landscape
Munich litigation boutique formed by former Taylor Wessing partners continues expansion as it seeks to cement its position in the UPC market
Yvonne Tang and Siau Wen Lim, the second and third IP specialists to sit on the firm’s management committee, say IP is ‘uniquely positioned’ to support cross-practice work
Gift this article