Pharmacy Daily | PHARMAC’s $38m savings

NEW Zealand’s PHARMAC has said its recent tender process, with 246 contracts awarded, was likely to save NZ$38m over three years. It had received record levels of offer to supply pharmaceuticals at almost 3,500 from 54 companies. Director of operations Sarah Fitt said the savings were needed to fund the growing volume of medicine used and to invest in new medicines. Fitt said the comparatively high use of generics in the country was due to the tender and to a greater understanding that generics went through the same quality checks. New contracts for different presentations of paracetamol were estimated to save more than NZ$2m over three years, and moving to sole supply of quetiapine (to Quetapel) and olanzapine, would see combined savings of more than NZ$8m, it said. An article published in Australian Prescriber in July said analysis of 73 of the most commonly prescribed drug dose combinations showed Australian prices were on average eight times higher than NZ’s. NZ policies were criticised because fewer medicines, including new drugs, were subsidised compared with other countries, with differences partly due to NZ working on a capped budget it said. However, most of the drugs funded in Australia and not in NZ were additions to an existing therapeutic class rather than new drugs providing important benefits, and there was a lack of research as to whether or not lack of access to some innovative medicines adversely affected patient outcomes, the article said. A spokesperson for the Generic Medicines Industry Association said transplanting the NZ system would not work because it reduced patient choice, would destroy investment in the country and damage the manufacturing sector. Australia had yet to capitalise on the opportunities presented by generic medicines and needed a policy that enabled greater use, the spokesperson said. Medicines Australia ceo Dr Brendan Shaw said NZ managed its health system by restricting choice and many medicines that Australians could access through the PBS were not available or subsidised in NZ. The single supplier process risked broken supply chains, he said. It was unrealistic to assume Australia could adopt NZ’s strict tendering and pricing policies, but avoid its negative consequences of inconsistent and low-quality supply, he said. To read the article, CLICK HERE.

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