Called Nexavar and described by its manufacturer as a milestone, it has been available on the Pharmaceutical Benefits Scheme (PBS) since February 1.

Nexavar is for people diagnosed with advanced, inoperable liver cancer (hepatocellular carcinoma).

The drug is the first systemic treatment to be registered for advanced liver cancer, and is also the first therapy shown to extend life, significantly improving overall survival by 44 percent.

Associate Professor Simone Strasser, chair of the Digestive Health Foundation, said the inclusion of Nexavar on the PBS meant the drug was now available to people regardless of their socio-economic status.

"Previously it cost $6000 a month,'' she said.

Professor Strasser said rates of liver cancer had risen four-fold in the last 25 years in Australia, exacerbated by migration, particularly from Asian countries where there is a higher incidence of hepatitis B, which affects the liver.

"Nexavar is the first thing to slow the progression of the disease,'' Professor Strasser said.