Pharma companies reject pay-for-performance model

Under the pay-for-performance model, the companies would be required to rebate part or all of the price of the drug depending on how well the patient responds to treatment. 

Patients will also be taken off medication if they are not seen to be responding. 

However, Vertex, which sponsors ivacaftor (Kalydeco) for cystic fibrosis, and Alexion, which sponsors eculizumab (Soliris) for atypical haemolytic uraemic syndrome (aHUS), have said they will not agree to the conditions. 

Both drugs have been the subject of intense lobbying following previous PBAC rejections. 

Ivacaftor costs $300,000 per year per patient, while eculizumab will cost taxpayers up to $200 million over five years to treat the estimated 60 Australians affected by the syndrome. 

Vertex said the conditions imposed by the PBAC mean almost half of the 200 Australians with cystic fibrosis estimated to benefit from ivacaftor would be excluded