MRC Report: Taking back control

australia’s vulnerable pharmaceutical supply chAIN

Published: April 2024

Author: Kieran Zucconi

Australia relies on overseas imports for 90% of life-saving pharmaceuticals. While offshore manufacturing has secured cheaper and more widely available goods for the world, low costs can come at a high price in the event of a crisis. Nowhere is this concern more prevalent than in Australia’s pharmaceutical industry, responsible for personal protective equipment, medical devices and, for the focus of this report, the medicines necessary for the health of the people.

The COVID-19 pandemic highlighted Australia’s vulnerable position in an isolated part of the world and at the end of a long global supply chain that is incredibly reliant on pharmaceutical exports from distant countries.

For this reason, this report recommends that Australia shifts efforts to developing more robust supply chains with our Southeast Asian neighbours. These nations want investment and can serve as alternative exporters to an increasingly assertive China which threatens the fragile supply chain.

In addition, developing Australia’s advanced manufacturing capabilities and producing some of the most commonly prescribed and over-the-counter medicines would vastly improve our self-reliance. This as well as improving the National Medical Stockpile’s storage capabilities will drastically improve Australia’s self-sufficiency, at least in the short term.

As a wealthy first-world nation, Australia can do better than rely on imports for 90% of its pharmaceuticals. By taking advantage of growing Southeast Asian pharmaceutical industries, manufacturing some of our most commonly used medicines and expanding the National Medical Stockpile’s storage, Australia can secure a less dependent and more reliable pharmaceutical supply chain.