Australia Protects Cheaper MS Treatments

Australians living with multiple sclerosis (MS) will retain access to vital subsidised treatments, including Ocrevus, Kesimpta, and Lemtrada, through the Pharmaceutical Benefits Scheme (PBS). Health Minister Mark Butler confirmed these medications will remain available at affordable prices, resolving uncertainty sparked by manufacturers pushing for higher government payments.

The Pharmaceutical Benefits Advisory Committee (PBAC) has recommended a rapid review of MS drug usage, to be finalised by December 2026. This review is part of a broader assessment of PBS medicines, especially as some pharmaceutical companies have recently withdrawn or threatened to withdraw drugs from the scheme.

Reference pricing, where cheaper alternatives set a benchmark, is a key PBS mechanism. The introduction of a cheaper MS drug, Briumvi, in late 2025 led to negotiations for Ocrevus and Kesimpta to match its price, reportedly a 50% cut. Companies argue this punishes innovation and impacts their ability to keep drugs on the PBS.

Global drug pricing, particularly US policies like Donald Trump's "Most Favoured Nation" initiative, is influencing these Australian negotiations. Pharmaceutical companies argue high US prices fund research, while critics contend this is a tactic to secure higher prices worldwide. The Australian government views US pressure as a significant concern.

Butler acknowledged the need for PBS reform and stated that a review of health technology assessments will ensure contemporary evidence guides drug evaluations. The government aims to clarify the evidence needed for higher-priced, innovative therapies, balancing affordability with access to new treatments.