Australians relying on the popular diabetes and weight loss drug Mounjaro have been dealt a significant blow, with confirmation that the medication will not be listed on the Pharmaceutical Benefits Scheme (PBS) for the foreseeable future.
Pricing dispute ends negotiations
Around 450,000 Australians will miss out on discounted access to the weekly injection after its manufacturer, pharmaceutical giant Eli Lilly, walked away from negotiations with the federal government. The company had been locked in a long-running pricing stoush with the government over the medication’s PBS listing.
Eli Lilly has now abandoned those negotiations entirely, leaving patients to continue paying hundreds of dollars every month out of their own pockets for the treatment. The decision means that Mounjaro will remain unavailable at subsidised prices, despite its growing popularity as both a diabetes medication and a weight loss treatment in recent years.
Impact on patients
The collapse of talks is a major setback for the estimated 450,000 Australians who use Mounjaro, many of whom are managing type 2 diabetes or seeking effective weight loss solutions. Without PBS listing, patients must bear the full cost, which can exceed $400 per month. Consumer advocates have expressed disappointment, urging both parties to return to the negotiating table to ensure affordable access to this important medicine.
Mounjaro (tirzepatide) has been hailed as a breakthrough treatment, offering significant blood sugar control and weight reduction. However, the pricing impasse highlights ongoing tensions between government cost-containment efforts and pharmaceutical companies seeking profitable returns.
Health Minister Mark Butler reiterated the government’s commitment to affordable medicines but stressed that any PBS listing must represent value for taxpayers. Eli Lilly has not commented on whether it plans to resume discussions.
