The federal government is investing $20m into sovereign IV fluid manufacture to shore up local supply and the potential for export.
Australia’s sovereign IV fluid manufacturing capability is set to be boosted by around 20 million units, as the federal government invests $20 million in the only onshore manufacturer.
In July last year, the TGA confirmed that global IV fluid shortages had reached Australian shores, with all three local suppliers – Baxter Healthcare, B. Braun and Fresenius Kabi – affected.
The regulator suggested that supply would likely be constrained throughout the year, prompting some hospitals to warn ward staff to err on the side of caution when using saline fluids, Assistant Minister for Health and Aged Care Ged Kearney said at the time.
The supply constraints prompted conversations on the need for more sovereign manufacturing capability.
Yesterday, the government announced that it would extend Australia’s onshore IV fluid manufacturing with a $20 million investment to expanding Baxter Healthcare, the sole local manufacturer.
The investment will be matched by the multinational healthcare company and will expand onshore IV fluid production by a minimum of 20 million units, to 80 million a year by 2027.
This should guarantee sovereign supply, which is around 60 million units per year according to the minister, and may allow some export potential.
The federal government was critisised by opposition health spokesperson Senator Anne Ruston for being slow to act when warned of the initial impending shortage.
Federal health minister Mark Butler said that, currently, supply was in “a pretty good place”.
The investment would help ensure the 1500 jobs at Baxter’s west Sydney facility, he added.
“That, in and of itself, is good reason to do it,” he told the press yesterday.
“But as health minister, another good reason to do it, this investment by the Commonwealth, is to secure a critical input to the healthcare system.
“Last year, our healthcare system was impacted by some pretty severe global shortages and interruptions to manufacturing for IV fluids.
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“Most of us took IV fluid supply for granted. People working hard in public hospitals, private hospitals, primary care, thinking that you’d always be able to reach back and there would be a bag there for you to use.
“Suddenly, there was a question mark over whether those bags would be there.”
The new investment will help secure ongoing supply, he said.
“Our investment will now cover IV demand for Australia and we will no longer be hostage to overseas supply.
“Baxter Healthcare’s facility has been an important part of manufacturing in Western Sydney for 50 years, and this investment will help it expand to produce another 20 million IV fluid bags every year.
“It means more jobs, more bags of IV fluid, and less dependence on overseas production.”