Drug companies are on the brink of war with the Abbott government over proposed cuts in next week’s budget, which they warn will restrict access to new medicines.

The government is proposing a 5 per cent cut in what it pays for some leading medicines, including the latest cancer drugs, in a bid to save the Pharmaceutical Benefits Scheme $3 billion from the ­innovative medicines sector alone in the next five years. The savings are understood to be part of government plans to cut as much as $5bn from the PBS over the next five years.

Sources have told The Austral­ian that total savings from the health budget will exceed $7bn in Tuesday’s budget.

Medicines Australia, which represents the innovative med­icines industry, is said to be considering a public campaign against the cuts and has called in leading lobbying firms, including Liberal Party pollster Crosby ­Textor.

For more details, go to: http://www.theaustralian.com.au/national-affairs/health/budget-2015-drug-firms-prepare-for-war/story-fn59nokw-1227339810429