Life-changing MS drugs to stay on the PBS. So why are others under threat – and how is Trump involved?
Australia’s health minister Mark Butler said an expert panel will keep MS drugs Ocrevus, Kesimpta and Lemtrada on the PBS, maintaining taxpayer subsidies after manufacturers sought higher payments. The PBAC also ordered a rapid review of MS drug use to be completed by year end. The article cites possible price cuts tied to US “Most Favoured Nation” policy and PBS reference pricing.
How this was made
The 30-second read
Why it matters
The minister confirmed Ocrevus, Kesimpta, and Lemtrada will remain on the PBS, ending uncertainty from manufacturers pushing for higher government payments. However, the PBAC also ordered a rapid review of MS drug use to be completed before year-end, keeping pricing and reimbursement risk alive. The article links this to US Most Favoured Nation pricing policy and claims of US pressure influencing foreign pricing outcomes.
Market read
Traders in MS biologics and pricing-sensitive pharma should weigh reduced immediate downside from PBS retention against renewed uncertainty from a December review of MS drug use and evidence standards.
What to watch
The article notes confidential wholesale negotiations and that the committee will review how MS drugs are used, so commercial impact may hinge more on utilization and evidence standards than on headline subsidy status.
Background
Australia’s PBS subsidizes most medicines via PBAC health-benefit and cost-effectiveness recommendations, then government negotiates wholesale prices and subsidizes retail prices at the pharmacy.
Ticker impact
Novartis is named as the Kesimpta manufacturer facing potential PBS price alignment to Briumvi, with the article noting US pressure concerns.
Near-term downside risk reduced; volatility possible into the December review outcome.
The minister confirmed subsidies remain, yet the committee calls for a rapid review of MS drug use before year-end.
TG Therapeutics is named as the producer of Briumvi, which set a cheaper PBS benchmark that could force price cuts for other MS drugs.
Supports continued favorable relative pricing versus Ocrevus and Kesimpta, though broader MS review could still affect utilization.
The article states Briumvi was added in late 2025 at cheaper cost and that government told Novartis and Roche it would pay the same price as Briumvi.
Market effects
Highlights reference-pricing and HTA evidence scrutiny risk for MS biologics in markets with PBS-like systems, potentially pressuring global pricing strategies.
Australia-specific PBS decision reduces near-term revenue risk for Roche and Novartis tied to Australian reimbursement, while keeping review-driven uncertainty.
Connects to US Most Favoured Nation policy debate, implying cross-country pricing leverage and potential pullback risk in smaller markets.
Counterpoint
PBS retention may be temporary; the rapid review could still tighten MS drug utilization rules or evidence requirements, reintroducing pricing pressure later in 2026.
Key entities
- drugOcrevus
Roche’s multiple sclerosis therapy discussed as facing potential PBS price pressure but confirmed to remain subsidized.
- drugKesimpta
Novartis’ multiple sclerosis therapy discussed in the context of reference pricing and potential price alignment to Briumvi.
- drugLemtrada
Multiple sclerosis drug whose PBS subsidy is confirmed to remain, reducing withdrawal risk.
- drugBriumvi
TG Therapeutics’ MS drug added to the PBS in late 2025 at a cheaper cost, used as the reference pricing benchmark.
- regulatorPharmaceutical Benefits Advisory Committee (PBAC)
Expert panel recommending subsidy decisions and now calling for a rapid review of MS drug use before year-end.
