PHARMAC on competition
May 9, 2014
NEW Zealand’s Pharmaceutical
Management Agency (PHARMAC)
has said it intends to try out a
contestable fund and bidding
process for high cost medicines
for rare disorders, which could
see it seek proposals from
pharmaceutical companies by the
end of the year.
Up to NZ$5m a year could be
made available through already
budgeted funding, PHARMAC said,
and such a process, where suppliers
bid for a capped fund, could show
that PHARMAC wanted to improve
access to high cost treatments,
and could encourage suppliers to
propose more competitive pricing.
Ceo Steffan Crausaz said
promoting competition could be
the key to improving access.
The proposed funding approach
was the result of listening to patient
concerns in recent forums and
consultations, which led PHARMAC
to the view that the main problem
was a lack of competition, he said.
“We know competition leads
to lower prices, and that’s an
area where PHARMAC has an
established track record.
“Our activities in promoting
competition enable New Zealand to
achieve some of the lowest prices
for medicines in the world.
“We think that by promoting
competition among suppliers,
prices will reduce and as a result,
patients will get funded access to
them.”
Medicines NZ general manager
Kevin Sheehy said in principal the
organisation supported a ring
fenced budget for medicines for
rare disorders but the proposed
budget was inadequate if compared
with the figures developed by the
NZ Organisation for Rare Disorders.
The NZORD has estimated the
budget needed to be in the order of
NZ$20m to NZ$25m.
PHARMAC published a discussion
paper last month on its website and
is inviting comments.
To view it, CLICK HERE.
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