OBJECTIVES: To establish the cost per month of mean overall survival improvement, in Chilean patients treated with ipilimumab, from a third payer perspective.  METHODS: We compared ipilimumab treatment for advance melanoma with other drugs for advanced cancer that met inclusion criteria including: (1) positive phase three study with overall survival as primary or secondary aim, (2) authorized by Chilean government agency, and (3) verifiable price in the private market. We performed a cost – efficacy analysis, using local prices obtained from published local sources to calculate an average cost to progression. Time to progression was obtained from published clinical trials. Mean overall survival improvement was used as the efficacy metric. Cost – efficacy outputs were plotted and compared. All costs are presented in 2014 USD. Additionally, a survey to Chilean oncology specialist was designed to obtain qualitative information about their experience(s) with ipilimumab for the treatment of metastatic melanoma patients in Chile. RESULTS: Nineteen drugs met inclusion criteria with 28 advance cancer indications. The average cost per month of mean survival improvement was estimated at $24,802 (range 1,737 – $91,256). We estimated the cost per additional month of mean survival improvement at $13,122 and $14.843 for first and second line treatment with ipilimumab respectively. Based on the survey, local expert opinion unanimously stated that ipilimumab is the best treatment alternative for patients with advanced melanoma. CONCLUSIONS: Compared with other innovative drugs for the treatment of advanced cancers, the cost per mean survival improvement with ipilimumab was below the average market value and may provide good value for money from a third payer  perspective in Chile. Based on the survey, specialists noted ipilimumab as the best treatment option for Chilean patient with advanced melanoma.