The PBS has decided not to list a potentially life-changing cystic fibrosis drug.

The new drug Orkambi can help reduce hospital visits and the hours of daily physiotherapy that CF sufferers need to remove mucus from their lungs and digestive system, but carries a $250,000 annual price tag.

The Pharmaceutical Benefits Advisory Committee has refused — for the third time — to recommend the drug be put on the PBS.

Reports say the PBS administrators are negotiating with drug company Vertex over its price.

The Government had made an offer which would have seen Vertex receive $100 million in public funding in exchange for discounted access to Orkambi, but the company has made little attempt to negotiate.

A Health Department spokesperson has told reporters that the PBAC knows the drug can be beneficial for patients with cystic fibrosis.

“The PBAC has considered and provided advice on what a value for money price for this medicine would be,” the department said.

“The PBAC, and the Government, would support the listing of this medicine at a price that would see Vertex receive over $100 million in public funding.”

It said negotiations between the Government body and Vertex will continue.