More than 2000 medicine brands treating common conditions will drop in price from October 1, under the changes announced by Health Minister Sussan Ley.

One-in-three PBS medicine brands will be cheaper under the changes, some by up to $20 per script.

"The Turnbull Government is continuing to deliver the largest ever reductions in the price of medicines for consumers across the Pharmaceutical Benefits Scheme," Ms Ley said.

"Millions of Australians will benefit from these innovative reforms, with some people suffering multiple chronic conditions such as osteoporosis, high blood pressure, diabetes and gastric reflux set to save as much as $400 per year on their medicine scripts.

"This announcement will also help ease cost pressures on a number of long-standing medicines on the PBS treating life-threatening diseases such as cancer."

Under the changes, a non-concessional patient with diabetes, osteoporosis, high blood pressure and gastric reflux who takes: metformin for type 2 diabetes 500mg tablet twice daily; pantoprazole for gastric reflux 40mg tablet daily; alendronate 70 mg + colecalciferol 140 microgram tablet for osteoporosis (as per dosing instructions); and enalapril with hydrochlorothiazide for high blood pressure 20 mg/6 mg tablet daily would save up to $34.19 per month on scripts, which equates to a yearly reduction of $410.28

More than 80 per cent of the brands set to drop in price would see a direct saving for some consumers, while the other 20 per cent – priced above the general PBS co-payment – would save taxpayers $900 million over four years.

"The savings from our 2015 package are being used to subsidise breakthrough medicines,” Ms Ley said.

"It’s a win-win for taxpayers and consumers.”