The UK/CA/AU/NZ all have similar models of an independent review of a drug's overall cost/benefit. In Australia, the Pharmaceutical Review Board reviews a drug

The UK/CA/AU/NZ all have similar models of an independent review of a drug's overall cost/benefit. In Australia, the Pharmaceutical Review Board reviews a drug for its cost/benefit and expects the pharma company to justify its cost. If the cost/benefit ratio is sufficient, a recommendation is made to the government, which then decides whether it will subsidize the drug. If it does, then the drug is provided to patients at a capped price (currently ~AUD40 for non-welfare recipients, ~AUD7 for welfare recipients), with the remainder of the cost paid by the government. This provides a direct incentive to the pharma company to get their drug listed under the PBS, because it ensures that they have a large market available. Drugs that are not available under the PBS are still available, but at full price to the patient. However, because of the expectations of pricing in our market, the pharma companies have to keep their prices lower overall.