The Rx&D International Report on Access to Medicines 2009-10 ranks Australia 23rd out of 31 OECD countries in terms of expenditure on medicines as a proportion of GDP.
Medicines Australia chief executive Dr Brendan Shaw said: "In essence this report measures the willingness of governments to pay for new innovative pharmaceuticals and Australia doesn't stack up too well."
Key findings in the report include:
* Australia ranks 24th out of 30 countries for government's share of national healthcare expenditure.
* Australia ranks 19th out of 29 in terms of willingness to reimburse new medicines. Of the 150 medicines reviewed in he study, Australia reimburses 60 per cent, compared with the OECD average of 64 per cent.
* The proportion of first-in class medicines included in the study that were subsidised in Australia is 52 per cent compared with an OECD average of 65 per cent, ranking Australia 20th out of 29.
* In terms of oncology medicines, Australia ranks 20th out of 29 countries when looking at the number of medicines that are subsidised.
The Rx&D International Report on Access to Medicines 2009-10 was commissioned by Rx&D, the Canadian research-based medicines industry association.