The number of high-priced drugs being subsidised by the Commonwealth has dramatically increased in recent years as pharmaceutical companies produce more targeted therapies for smaller groups of patients.

According to the federal Health Department, there are 61 drugs listed on the Pharmaceutical Benefits Scheme that cost more than $5000 each time they are dispensed.

In 1991, $2,800 would have had the same buying power as $5,000 today. Yet the most expensive drug listed on the scheme in 1991 cost $843 – less than a third of this amount.

In response to a question from Liberal senator Linda Reynolds, the department said while there were a similar number of drugs costing $20 or less in 1991 and 2014, "the number of higher cost listings has grown significantly".

More than 500 drugs are currently listed on the PBS with a cost of between $1,001 and $5,000.

The Pharmaceutical Benefits Advisory Committee, the expert body which recommends medicines for subsidy, is preparing to consider a second application for the listing of Hepatitis C drug Sovaldi. The committee rejected the drug for listing last July on value for money grounds. The Health Department has since revealed the estimated cost of the drug at its initial asking price was more than $1 billion over five years.

In the United States, the cost of a 12-week course of Sovaldi is about $US84,000 ($102,000).

For more details, go to: http://www.smh.com.au/federal-politics/political-news/targeted-therapies-raise-the-number-of-subsidised-highpriced-drugs-20150113-12nf9z.html