Celgene cancer drug approved for PBS listing in Australia

Pancreatic cancer drug Abraxane (paclitaxel protein-bound particles for injectable suspension), from US biotech company Celgene (Nasdaq: CELG), will be listed on the Australian Pharmaceutical Benefits Scheme (PBS) effective from November 1.

The Australian government has committed over A$92 million ($83 million) over four years to subsidise Abraxane on the PBS.

Pancreatic cancer is highly aggressive with very few treatment options. Health Minister Peter Dutton said more than 1,500 patients would benefit each year from the PBS listing. “This listing provides patients with a new treatment option that has demonstrated an increase in overall survival by around two months, compared to other treatments,” he said.

Average treatment cost of A$16,000

Without the PBS listing of this medicine, patients would face an average cost of A$16,000 for a course of treatment, at an average cost of A$1,300 per script. Once listed on the PBS, that script will cost a concessional patient only A$6.00.

At an average cost of A$16,000 per treatment it is easy to see why listings such as this have seen the cost of the PBS go up a staggering 80% over the past decade, the Department of Health and Ageing noted. The government needs to ensure that the PBS is managed in a fiscally responsible way, so that the Australian community has access to new, innovative and affordable medicines now and into the future, because without PBS subsidy these new drugs are out of reach of most Australians.

The listing of Abraxane was recommended by the Pharmaceutical Benefits Advisory Committee in March and the details were agreed with the pharmaceutical company in July. It has now received approval from Cabinet.

Result of cooperation with manufacturer

“Following agreement of pricing and listing arrangements with the pharmaceutical company, the government has taken less than two months to consider the listing, making it one of the fastest listing approvals for a high cost medicine in recent years,” Mr Dutton said, adding: “This demonstrates that, when the pharmaceutical companies and government work closely together, important medicines can be made available quickly and at affordable prices.”

The Commonwealth spends more than A$9 billion annually to fund existing items on the PBS, with one in every eight dollars now spent on cancer treatment. All PBS listings are subject to final arrangements being met by the suppliers of the medicine.