CSL chief executive Dr Brian McNamee has been appointed to head the Federal Government's new Pharmaceuticals Industry Strategy Group.

The group has been set up to develop a plan to attract investment in R&D, clinical trials and manufacturing activity in Australia.

Innovation Minister Senator Kim Carr said the group will examine barriers to attracting new investment in the pharma sector. "It will present a draft report to me by September and a final report by the end of the year," Carr said.

"The environment the pharmaceuticals industry operates in has changed dramatically over the last decade," he said. "We need a full and frank assessment of the opportunities and challenges facing the sector."

Group members will include AusBiotech CEO Dr Anna Lavelle, Medicines Australia CEO Ian Chalmers and the Generic Medicines Industry Association executive director Di Ford.

The head of the innovation division of the Department of Innovation, Craig Pennifold, will co-chair the group.