Australia to fund PBS listing of Keytruda to treat melanoma

The Australian government will invest A$57 million ($43.6 million) to list breakthrough melanoma drug Keytruda (pembrolizumab), from US pharma giant Merck & Co (NYSE: MRK), on the Pharmaceutical Benefits Scheme (PBS).

This will improve quality of life for 1,100 Australian patients and make the A$150,000 per year treatment affordable, according to a Department of Health and Ageing statement. The listing follows passage of the government’s PBS reform package through the Senate last week and delivers on our promise to list new medicines as quickly as possible. Treatment will be made available on the PBS from September 1, 2015. It complements A$1.3 billion from the 2015/16 Budget for other melanoma medicines as well as drugs to treat breast cancer, blindness and shingles.

Treatment using Keytruda currently costs patients with metastatic melanoma up to A$156,130 per year without taxpayer subsidy through the PBS. People will now pay A$6.10 if they are concessional patients or A$37.70 for general patients.

Since coming to office, the Commonwealth government has now approved 667 new and amended listings to the PBS, with a benefit of almost A$3 billion to Australian patients. This compares with only 331 new listings in Labor’s final term.

Today’s announcement demonstrates the importance of ensuring that spending on existing drugs is as efficient as possible, so breakthrough medicines like Keytruda can continue to be listed. All PBS listings are subject to final arrangements being agreed with suppliers of the medicine, including risk share arrangements.