The federal government will invest $20 million to help Australia’s only local manufacturer of IV fluids expand its operations to shore up the country’s supply of the critical hospital medicine.
Since 2023, Australia, along with hospitals worldwide, has experienced a shortage of intravenous (IV) fluids due to increased demand, manufacturing issues, and global supply chain issues.
In a bid to make Australia “no longer be hostage to overseas supply”, the Albanese Government has committed $20 million to help expand Baxter Healthcare’s production facility in Western Sydney to boost future supply.
The investment, matched by the company, will expand local IV production by at least 20 million units, ensuring 80 million units are produced each year from 2027.
Last year, the Therapeutic Goods Administration (TGA) added IV fluids to a growing list of medicines in short supply and forecast that global supply issues were likely to continue in 2025.
Health Minister Mark Butler said the investment in Australia’s IV fluid production was part of broader efforts to safeguard supply of the essential medicine, including a clinical review to ensure the best use of IV fluids, and establishing a panel of suppliers to help reduce any future shortfalls.
“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,” Mr Butler said.
