Diabetes Drug Access Dispute in Australia

Diabetes Drug Access Dispute in Australia

28 Apr 2026

The decision follows Eli Lilly’s rejection of the proposed PBS pricing, with the company saying the conditions set by the Australian Government were too low and not practical.

PBAC had recommended listing the drug for adults with poorly controlled type 2 diabetes to improve access and reduce cost barriers for patients. This was the fourth time the company attempted to secure PBS listing.

Eli Lilly’s Australian and New Zealand general manager said the proposed price was far below what is paid in other countries. The company also noted that up to 450,000 Australians living with type 2 diabetes may have benefited from PBS access.

Mounjaro is already approved in Australia for type 2 diabetes and weight management, but without PBS listing, it remains expensive for patients.

At present, the medicine can cost up to $645 per month.

RACGP Diabetes Chair Dr Gary Deed said other PBS-listed treatments such as semaglutide (Ozempic) and dulaglutide (Trulicity) are still effective and more affordable options for many patients.

He said doctors should continue using available PBS medicines carefully and follow current treatment guidelines before considering newer options.

Dr Deed also raised concerns about increasing off-label use of injectable weight-loss drugs, warning that it may place pressure on healthcare funding.

He added that decisions around PBS listing are closely linked to cost control and long-term sustainability of Australia’s healthcare system.

Federal Health Minister Mark Butler said price negotiations between the government and drug companies are a normal part of maintaining a sustainable PBS system.

Eli Lilly said the outcome may affect future attempts to get Mounjaro approved for other uses, including obesity treatment, but it remains open to finding alternative access solutions outside the PBS. 

https://www1.racgp.org.au/

Source: RACGP / newsGP report on PBAC recommendation and Eli Lilly response

 
 

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