A cream used to treat non-malignant forms of skin cancer will be funded in New Zealand by PHARMAC.
Imiquimod can be applied by patients themselves to treat basal-cell carcinoma.
While surgery remains the most effective treatment for skin cancers, imiquimod is useful in treating people for whom surgery might be inappropriate.
"We see this as a step forward for people with this particular type of skin cancer," says Dr Dilky Rasiah, PHARMAC's Acting Medical Director.
PHARMAC estimates that about 1,800 people with basal cell carcinomas will be treated with imiquimod in the 2008/09 financial year, rising to about 4,500 by 2013.
Together with its other uses, PHARMAC estimates nearly 12,000 people will be treated with imiquimod annually by 2013.
Rasiah says most people will probably prefer imiquimod to the cream currently available because it has a high success rate with clearing tumours and does not scar skin.
Imiquimod has also been funded for the treatment of genital warts.
It will be funded from next month.