Sadly, approving funding for only one drug doesn't make it any cheaper for Government because the number of people requiring treatment is the same. Government pays a fixed price for a cure no matter what drug is used.
I would have to disagree with this. New Zealand uses precisely this strategy. Their policy is that we need 1 or 2 good treatments for this problem, not every treatment from every manufacturer.
This translates into a
reverse auction
where manufacturers are invited to submit their best prices to get and keep the Government subsidy.
New Zealand's prices prove beyond any doubt that hard negotiation encourages Big Pharma to sharpen their pencils.
We pay 8 times more than New Zealand for the 73 common drugs - I am not making this up....
www.australianprescriber.com/magazine/37/5/150/1
The population of New Zealand is similar to that of Sydney. By rights we should be able to negotiate better volume discounts.
The cost savings to the PBS on this have been estimated to be more than $1 billion a year.