Eli Lilly CEO Expresses Hope for Mounjaro PBS Listing in Australia

What Happened

Eli Lilly CEO David Ricks stated his desire to reach an agreement with the Australian government to list the diabetes and weight loss drug Mounjaro on the Pharmaceutical Benefits Scheme (PBS). The pharmaceutical company previously withdrew from negotiations due to what they termed unrealistic and unviable price conditions set by the Australian government. Ricks indicated that Australia's valuation of the medicine was the core issue, suggesting that a significantly lower price than reimbursed globally could have negative repercussions on the company's ability to reinvest in research and development.

Comedian Rosie O’Donnell disclosed that after starting Mounjaro for her type-2 diabetes three years ago, she experienced rapid weight loss, losing 12 pounds in two weeks and a total of 65 pounds. This significant change led her to contact her doctor in tears, fearing she might have cancer. O'Donnell stated that her doctors initially prescribed Mounjaro solely to manage her blood sugar, without mentioning weight loss.

Key Facts

• Eli Lilly CEO David Ricks wants Mounjaro to be listed on Australia's Pharmaceutical Benefits Scheme (PBS).
• Eli Lilly previously withdrew from PBS listing negotiations due to a pricing dispute with the Australian government.
• Federal Health Minister Mark Butler confirmed that price negotiations were the reason for the drug not being listed on the PBS.
• Rosie O'Donnell has been taking Mounjaro for three years for type-2 diabetes.
• O'Donnell lost 12 pounds in her first three weeks on Mounjaro and has lost a total of 65 pounds.
• O'Donnell initially feared she had cancer due to her rapid weight loss on Mounjaro.
• Doctors prescribed Mounjaro to O'Donnell for her type-2 diabetes, not initially for weight loss.
• Mounjaro is prescribed for type 2 diabetes and chronic weight management and was approved by the FDA in 2022.

Background

Mounjaro is a GLP-1 drug that treats type-2 diabetes and is also used for chronic weight management. The drug was approved by the FDA in 2022. Eli Lilly had rejected a recommendation from the Pharmaceutical Benefits Advisory Committee (PBAC) in April due to proposed price conditions it deemed too low compared to global benchmarks. Federal Health Minister Mark Butler characterized the situation as typical robust price negotiations between multinational drug companies and the government, which he stated contributes to the PBS's sustainability.