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Novartis beats Pfizer to listing
Posted 9 May 2018
Novartis' breast cancer treatment Kisqali will list on the PBS from July, one of a number of drugs being funded by the government under a $1.4 billion commitment over five years.
Recommended by the PBAC in March along with its competitor, Pfizer's Ibrance, Novartis has clearly been speedier in its negotiations with government enabling its therapy to get the jump on its global rival.
The government has allocated $703.6 million in pre-rebate spending to fund the listing of Kisqali, absorbing half of its commitment to new drugs and leaving Pfizer to either match its deal or see Novartis soak up the benefits.
The two CDK4/6 inhibitors have been in a neck-and-neck race globally for market share, and were both rejected several times before securing a PBAC positive recommendation in July.
They were also on Health Minister Greg Hunt's wish list of drugs he wanted added to the PBAC, but the announcement Kisqali will list will also quieten patient groups that were demanding reimbursed access, robbing Pfizer of much of its bargaining power.
Novartis has also secured the lion's share of the government's pre-rebate 'phantom' PBS spending, with the true cost of the drug likely to be revealed over the next few years.
The government said in its 2018-19 budget statement it would "provide $1.4 billion over five years from 2017-18 for a number of new and amended listings on the PBS and the RPBS".
New and amended listings funded in 2018 include Kyprolis, listed in January for multiple myeloma, Ocrevus, listed in February for relapsing-remitting multiple sclerosis, HIV PrEP drugs listed in April, the expansion of Keytruda's listing in May to cover Hodgkin lymphoma, Spinraza from June for spinal muscular atrophy and Kisqali from July.
Health Minister Greg Hunt recently said the Spinraza listing would cost $240 million before rebates, leaving $450 million for the remaining drugs.
"The cost of these medicines will be reduced by revenue from rebates negotiated as part of purchase agreements," the Budget says, putting the once-hidden pricing deals firmly on the table.
"Detail of the revenue (i.e. rebates) is not for publication due to commercial sensitivities."
The budget states 34 listed medicines will have their PBS price 'amended' in the first half of 2018, with the new pricing taking effect on 1 February, 1 April or 1 June.
According to the budget, the pre-rebate cost of the new and amended PBS listings will be $175.3 million in 2018-19 rising to $220.8 million in 2019-20 and $255.2 million in 2020-21 before falling back to just $101.8 million in 2021-22.
Megan Brodie
Posted 9 May 2018
Novartis' breast cancer treatment Kisqali will list on the PBS from July, one of a number of drugs being funded by the government under a $1.4 billion commitment over five years.
Recommended by the PBAC in March along with its competitor, Pfizer's Ibrance, Novartis has clearly been speedier in its negotiations with government enabling its therapy to get the jump on its global rival.
The government has allocated $703.6 million in pre-rebate spending to fund the listing of Kisqali, absorbing half of its commitment to new drugs and leaving Pfizer to either match its deal or see Novartis soak up the benefits.
The two CDK4/6 inhibitors have been in a neck-and-neck race globally for market share, and were both rejected several times before securing a PBAC positive recommendation in July.
They were also on Health Minister Greg Hunt's wish list of drugs he wanted added to the PBAC, but the announcement Kisqali will list will also quieten patient groups that were demanding reimbursed access, robbing Pfizer of much of its bargaining power.
Novartis has also secured the lion's share of the government's pre-rebate 'phantom' PBS spending, with the true cost of the drug likely to be revealed over the next few years.
The government said in its 2018-19 budget statement it would "provide $1.4 billion over five years from 2017-18 for a number of new and amended listings on the PBS and the RPBS".
New and amended listings funded in 2018 include Kyprolis, listed in January for multiple myeloma, Ocrevus, listed in February for relapsing-remitting multiple sclerosis, HIV PrEP drugs listed in April, the expansion of Keytruda's listing in May to cover Hodgkin lymphoma, Spinraza from June for spinal muscular atrophy and Kisqali from July.
Health Minister Greg Hunt recently said the Spinraza listing would cost $240 million before rebates, leaving $450 million for the remaining drugs.
"The cost of these medicines will be reduced by revenue from rebates negotiated as part of purchase agreements," the Budget says, putting the once-hidden pricing deals firmly on the table.
"Detail of the revenue (i.e. rebates) is not for publication due to commercial sensitivities."
The budget states 34 listed medicines will have their PBS price 'amended' in the first half of 2018, with the new pricing taking effect on 1 February, 1 April or 1 June.
According to the budget, the pre-rebate cost of the new and amended PBS listings will be $175.3 million in 2018-19 rising to $220.8 million in 2019-20 and $255.2 million in 2020-21 before falling back to just $101.8 million in 2021-22.
Megan Brodie
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