The Mounjaro PBS listing process has officially ended. Eli Lilly Australia has confirmed it will not list tirzepatide, sold as Mounjaro, on the Pharmaceutical Benefits Scheme (PBS) for type 2 diabetes. The company announced the decision in April 2026, saying the price and funding conditions attached to the recommendation were unviable, and the PBS has since marked the listing process as ceased.
March recommendation left unactioned
At its meeting on 11 March 2026, the Pharmaceutical Benefits Advisory Committee (PBAC) recommended that tirzepatide be listed for adults with inadequately controlled type 2 diabetes. It was the committee’s fourth look at the drug, following earlier considerations in July 2023, November 2024 and July 2025. The PBAC found the 10 mg and 15 mg strengths cost-effective, and said the 5 mg strength would be cost-effective at a lower price. With the company no longer proceeding, that recommendation has not been put into effect.
Why Eli Lilly walked away from the Mounjaro PBS listing
Lilly said the price the government was prepared to pay was too low, and significantly below any reimbursed price elsewhere in the world. It also objected to strict funding caps, which it said would have left the company carrying a disproportionate share of the financial risk. Under current policies, Lilly argued, a large slice of the spending would have gone to wholesalers and pharmacies rather than to the company, making long-term supply unsustainable.
Manny Simons, Lilly’s general manager for Australia and New Zealand, said that after four submissions and three years of talks with the department, the company was left with no other option. Lilly also pointed out that Mounjaro is already reimbursed for type 2 diabetes in 11 countries, including the UK.
Private market only, for now
Tirzepatide remains available through the private market, though the PBAC itself acknowledged that its high cost makes it hard for some people to access. The recommended weekly dose costs Australians up to $645 a month. The company said the decision would disappoint up to 450,000 Australians living with type 2 diabetes.
What it means for patients
For now, people prescribed Mounjaro for type 2 diabetes will keep paying full private prices. Other subsidised options are still available, though. The RACGP’s diabetes chair, Dr Gary Deed, noted that semaglutide (Ozempic) and dulaglutide remain on the PBS and are effective at a reasonable cost.
Mounjaro is also approved by the TGA for chronic weight management and for obstructive sleep apnoea in adults with obesity, but Lilly has said it now struggles to see a PBS listing being secured for those uses either. Anyone worried about cost or their current treatment should speak to their GP or pharmacist before making any changes.
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General information only, not legal advice. Check the official source before acting.
Source: Pharmaceutical Benefits Scheme. (information current as at 1 November 2026)
