Government funds older, cheaper eczema treatment amid stalled access to newer drugs

The government has opted to fund an older, cheaper treatment for moderate to severe atopic dermatitis (eczema) through the Pharmaceutical Benefits Scheme (PBS), listing Arrotex Pharmaceuticals’ aZematop (tacrolimus 0.1% ointment) as negotiations over access to innovative medicines, including Pfizer’s Cibinqo (abrocitinib) and Lilly’s Ebglyss (lebrikizumab), remain stalled.

Atopic dermatitis is a chronic inflammatory skin disease affecting around three million Australians and can have a significant impact on quality of life, including sleep, mental wellbeing, work productivity and daily functioning. Despite the availability of treatment options, many patients continue to experience recurrent flares and ongoing disease burden.

The PBS listing provides a subsidised treatment option for 143,000 patients with moderate to severe atopic dermatitis whose condition is not adequately controlled with topical corticosteroid therapy. However, while access to the established treatment has expanded, negotiations over newer therapies have stalled.

Pfizer and Lilly determined that the expected net price, combined with the risk-sharing arrangement (RSA), made the listing commercially unsustainable. Layering the RSA on top of an already low net price meant the post-rebate price failed to reflect the value of innovation, leaving patients without access.

Prior to the PBS listing of aZematop, the tacrolimus ointment was primarily available through private prescription or compounded formulations, creating an additional cost burden for some patients.

Hayley Tamborini, Chief Innovation Officer and Head of Government Affairs at Arrotex Pharmaceuticals, said “The PBS listing of aZematop reflects Arrotex’s commitment to improving access to affordable medicines for Australian patients living with chronic conditions that can have a substantial impact on quality of life.”

Tamborini added, “Having a PBS-subsidised non-steroidal treatment option available provides healthcare professionals with another evidence-based approach for managing moderate to severe atopic dermatitis, particularly for patients who have not achieved adequate disease control with conventional therapies.”

Associate Professor Li-Chuen Wong, a dermatologist specialising in both adult and paediatric care and a Senior Specialist Visiting Medical Officer and Head of Dermatology at The Children’s Hospital at Westmead, said access to a broader range of treatment options is important given the complexity of eczema management.

“While topical corticosteroids remain an important cornerstone of treatment, some patients require alternative therapeutic approaches because of inadequate disease control, disease location, tolerability concerns or the need for longer-term management,” explained Associate Professor Wong. “The PBS listing of tacrolimus ointment improves access to an established non-steroidal treatment option and provides clinicians with greater flexibility in tailoring treatment to individual patient needs.”

In reimagining healthcare across the entire patient journey, Health Industry Hub^TM is the only one-stop-hub uniting the diversity of the Pharma, MedTech, Diagnostics & Biotech sectors to inspire meaningful change.

The Health Industry Hub^TM content is copyright protected. Access is available under individual user licenses. Please click here to subscribe and visit T&Cs here.