Pharmaxis set to gain PBS listing for cystic fibrosis treatment

Pharmaxis has gained verbal approval for Bronchitol to be listed on the PBS

Scott Phillips (TMFGilla)

Scott Phillips is The Motley Fool’s Chief Investment Officer in Australia. He is Advisor of The Fool’s flagship investment service, Motley Fool Share Advisor and the Portfolio Manager of Motley Fool Everlasting Income and Premier Portfolio, as well as running our most premium service, Motley Fool Platinum. He is passionate about investing, having managed his own portfolio for over 15 years. A dyed-in-the-wool Fool (in the best way), he has been a member of The Motley Fool since 1999. Scott holds a Bachelor of Commerce (Management) and a Graduate Diploma of Accounting. Before joining The Fool, Scott worked in various Sales and Finance roles in industry, which has allowed him to see the good, bad and the ugly of corporate management close-up. Giving him a great understanding of the way businesses run – and what separates the business wheat from the chaff – Scott wholeheartedly agrees with Warren Buffett when he said he was a ‘better investor because I am a businessman and a better businessman because I am an investor’. Scott left a successful career to follow his passion – helping our members achieve the best possible investment returns, and helping Australians learn to better manage their money. It’s no surprise he ended up at The Motley Fool.

Published March 14, 2012 2:00 pm AEDT

Pharmaxis Ltd. (ASX: PXS) shares got a boost today with the company announcing that the Federal Government's Pharmacy Benefits Advisory Committee (PBAC) had provided verbal confirmation that it has recommended that one of Pharmaxis' drugs be added to the subsidised Pharmaceutical Benefits Scheme, or PBS, after the drug was knocked back by the PBAC last November.

Bronchitol is Pharmaxis' treatment for cystic fibrosis, a disease affecting 2,800 Australians. According to the company, Bronchitol is the first new medication (other than antibiotics) to be recommended for PBS listing in 15 years.

There are still a few hoops to jump through before Bronchitol is listed on the PBS. PBAC recommendations have been knocked back or delayed in the past, and the PBAC recommendation needs to pass the Australian Pharmaceutical Benefits Pricing Authority (PBPA) process before it can be finalised.

Assuming the company can clear these hurdles, it will represent another step forward in its respiratory drug development pipeline. The company hopes to bring Bronchitol to market in the US and Europe, having the drug in trial and registration phase for two distinct applications, and has other respiratory treatments in early development.

Investors certainly cheered this latest development today, with shares up around 9% through most of the trading day.

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Scott Phillips is a Motley Fool investment analyst. You can follow him on Twitter @TMFGilla. The Motley Fool's purpose is to educate, amuse and enrich investors. This article contains general investment advice only (under AFSL 400691).

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