SUBSIDY CLAIM FOR HEORIN DETOX DRUG

The heroin detoxification drug, naltrexone, will not be subsidised by the
Federal Government until November, at the earliest.

The drug's importer, Orphan Australia, plans to apply to have the drug
listed on the Pharmaceutical Benefits Schedule. It would then take about
five months for approval to be granted by Commonwealth authorities.

The drug, long-awaited by drug rehabilitation specialists, will be widely
available from next month in Australia to treat alcoholism and heroin
addiction.

Drugs listed on the schedule, however, are subsidised by the Federal
Government and become substantially cheaper to consumers.

Last week the price of the drug caused a stir when the Prime Minister, Mr
John Howard, was quizzed by a talkback caller on Melbourne radio.

A 21-year-old recovering drug addict asked Mr Howard why he had to pay $200
for a bottle of 30 tablets of naltrexone. Mr Howard responded by saying he
was not sure why the drug was so expensive.

To be included on the schedule, a drug's supplier has to show that the drug
is more medically effective or better value than similar medicines already
on the schedule. Drugs now listed cost a maximum of $20.30 per
prescription, and much less for concession card holders.

Naltrexone is being distributed here by the company Orphan Australia. It is
manufactured by DuPont Pharmaceuticals Company, of the United States.

The managing director of Orphan Australia, Mr Alastair Young, said it was a
complicated and time-consuming application but the company planned to apply
for schedule listing.

"We are working out with various health economists how to do it," he said.

"That application is a major application requiring justification in terms
of economics and clinical evidence."