15 November 2016 - The PBS Pricing Fact sheet on ‘Setting an approved ex manufacturer price for new or extended listings’ has been updated with an explanation of ‘Weighted Pricing’.

For a small number of drugs with multiple indications, each indication may have an indication-specific price which relates to its cost-effectiveness for the eligible patient population. The indication-specific price is usually different (i.e. higher or lower) from the published price. In this case, it is usual practice to employ a weighted pricing methodology to fulfil the requirements of the National Health Act 1953 to have a single published list price per pharmaceutical item. This generally involves applying a weighting to each indication-specific price and then adding these prices together in order to arrive at a single weighted price.

Read PBAC Pricing Fact Sheet