Drug makers will bear the brunt of around $6.6 billion in savings to be channelled into new drugs and higher returns for pharmacists – who will not face any full-scale assault on their competitive position – under a pharmaceuticals deal finally struck by the Abbott government.

Health Minister Sussan Ley said the deal would deliver "cheaper medicines, a more competitive pharmacy sector and greater investment in new medicines and patient support services" as part of the package.

But consumer groups immediately warned it meant patients would pay billions of dollars more for prescriptions. The pharmaceutical industry greeted the deal with a sullen, if resigned, assertion that it had gained assurances about certainty in price changes for agreeing to the cuts.

For more details, go to: http://www.afr.com/business/health/pharmaceuticals/pharmacy-guild-wins-28b-at-the-cost-of-drug-makers-20150527-ghatzf