Hopes lifesaving cancer drug now available in Australia will be added to PBS

A revolutionary skin cancer drug, already used overseas and saved the life of former Melbourne Grand Prix chief Ron Walker, has been approved for use in Australia.

Patients suffering advanced melanoma will be able to access the life-saving medication Keytruda, following approval from the Therapeutic Goods Administration.

One year after treatment with Keytruda, 74 percent of advanced melanoma patients were still alive compared with 58 percent of those on existing cancer treatments.

By mid-last year, melanoma patient Noel Turner had cancerous tumours spread to his stomach, bowel and brain.

Eight months after starting on Keytruda, Mr Turner is 10 kilograms healthier, feeling better, and his tumour growth has stalled.

Retiring Grand Prix chairman Ron Walker also credits Keytruda with conquering his skin cancer after having trial treatment overseas in 2013.

Dr Mark Shackleton from the Peter MacCallum Cancer Centre in Melbourne said the drug's approval is "hugely significant".

"I think this is the most significant change in the way we think about treating these patients that I have ever seen," he said.

The price of the drug may still prohibit some patients from accessing it. Unless it is subsidised or listed on the Pharmaceutical Benefits Scheme (PBS), the treatment could cost up to $150,000 a year.

Dr Shackleton said adding this drug to the PBS is "a no brainer".

A decision on a listing could be announced as early as this week.