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ACADEMY RECOMMENDS INCENTIVES FOR PHARMACEUTICAL RESEARCH - 24 August 1996

The Australian Academy of Science has recommended that the Australian Government extend incentives to encourage investment in pharmaceutical research. The recommendations are contained in a submission to the Industry Commission inquiry into the pharmaceutical industry.

In 1994 the Academy held a National Science and Industry Forum on the new techniques of discovering drugs from natural products and turning them into pharmaceuticals. The Academy's National Committees for Chemistry and Pharmacology, which organised the Forum, set up a joint working party to advise the Academy on what action was needed to boost the rapid growth of our pharmaceutical industry.

The President of the Academy, Sir Gustav Nossal, said, 'Australia has a wealth of biological diversity containing the raw materials for drugs and the skilled biologists and medical scientists to identify targets for drugs. With a little encouragement Australians could build a pharmaceutical industry to rival those in Sweden and Switzerland.'

The Academy has suggested that the Government should:

  • allow universities and research institutes to join research and development syndicates
  • continue to allow 150% tax deductions on investment in Research and Development
  • remove capital gains tax on research and development investments by majority Australian-owned pharmaceutical companies
  • extend beyond 1999 the successful Factor (f) scheme, which has encouraged industry investment
  • extend patent life to 15 years once a drug receives government marketing approval.

Australian universities and research organisations also need to improve links between chemistry and pharmacology departments to produce graduates suited to careers in the industry.

Sir Gustav said, 'The pharmaceutical industry epitomises a high-technology industry. It has the potential to produce large profits on easily transportable goods without massive expenditure on infrastructure and without damaging the environment. With our world-leading scientists, this is the kind of industry on which Australia can build its future.'

A copy of the submission is available at www.science.org.au/reports/pharmsub.htm.