Why MSD's broad funding bid failed

The PBAC has lifted the lid on what went wrong with MSD's attempt to win a recommendation for its multi-cancer funding proposal for Keytruda - complaining the company's submission was too complex with costing estimates unable to be verified.

MSD proposed a single weighted, effective approved ex-manufacturer price for Keytruda based on existing listed indications. A price volume arrangement (PVA) was proposed with increasing rebate levels over four tiers.

But the PBAC said MSD's utilisation estimates were based on its own internal commercial forecasts and overarching modelling assumptions which meant that ultimately, the Committee could not verify patient and vial numbers based on the information provided.