Australia lists new ADHD and RA drugs on PBS

The new Morrison government in Australia has made medicines that treat rheumatoid arthritis and attention deficit hyperactivity disorder (ADHD) cheaper, with new additions to the country’s Pharmaceutical Benefits Scheme (PBS) as of September 1.

Over 400,000 Australians suffer from rheumatoid arthritis, which is an autoimmune disease that targets the lining of joints and causes inflammation and joint damage resulting in painful, stiff and swollen joints.

Eli Lilly’s (NYSE: LLY) Olumiant (baricitinib) will be made available on the PBS for the treatment of moderate to severe rheumatoid arthritis from September 1.

The active ingredient in Olumiant works by blocking parts of the immune system involved in rheumatoid arthritis. It is estimated that more than 22,000 Australian patients could benefits from this medication.

Patients will no longer need to pay around A$16,500 ($11,956) a year for this treatment, instead they will pay a maximum of A$39.50 per script or just A$6.40 per script for concessional patients, including pensioners.

Intuniv (guanfacine hydrochloride prolonged release tablets), from Shire (LSE: SHP), will be listed on the PBS for the treatment of ADHD and provides a new treatment option for patients 6-18 years of age that are unable to use other ADHD medicines.

It is estimated more than 147,000 patients could benefit from this new treatment from Intuniv, which can help improve concentration and make patients less hyperactive.

Patients would normally pay around A$1,921 a year for this medicine but will now only pay a maximum of A$39.50 per script or just $6.40 per script for concessional patients.

The independent Pharmaceutical Benefits Advisory Committee (PBAC) recommended these new listings.