Thousands of Australians fighting late-stage renal and lung cancer will soon get easier access to a new drug.

From Tuesday, the federal government will subsidise Opdivo so that patients will pay just $38.80 per treatment, or $6.30 for those with a concession card.

Opdivo is one of the biggest listings ever on the Pharmaceutical Benefits Scheme Credit:AP

Up to now, patients have had to fork out about $5000 a course - adding up to more than $130,000 per year.

"This drug changes lives and save lives," Health Minister Greg Hunt said on Sunday.