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| Pharmac (New Zealand) | |
|---|---|
| Name | Pharmac |
| Native name | Pharmaceutical Management Agency |
| Founded | 1993 |
| Headquarters | Wellington, New Zealand |
| Jurisdiction | New Zealand |
| Chief1 name | Robin Gauld |
| Chief1 position | Chief Executive |
| Parent agency | Ministry of Health |
Pharmac (New Zealand) is the Pharmaceutical Management Agency of New Zealand, responsible for deciding which medicines and related products are subsidised for use in the public health system. It operates within a framework of public policy and health legislation, negotiating prices and managing the national pharmaceutical schedule to control costs and improve access. Pharmac interfaces with international pharmaceutical companies, regional health boards, patient advocacy groups and clinical experts to balance cost-effectiveness, clinical need and population health priorities.
Pharmac was established in 1993 amid reforms led by figures associated with the Rogernomics era and implemented during the tenure of the Fourth Labour Government (New Zealand). Its creation followed earlier policy development influenced by reports from the Bunning Commission and debates involving the New Zealand Treasury, Ministry of Health (New Zealand), and health economists such as Alan May. Early negotiations with multinational firms like Pfizer and GlaxoSmithKline set precedents for bulk purchasing and parallel trade discussions familiar from the North American Free Trade Agreement era. Landmark moments include the 2000s expansion of the national drug purchasing role, interactions with the World Trade Organization rules, and high-profile funding decisions intersecting with cases brought before the New Zealand Parliament and judicial reviews in the High Court of New Zealand.
Pharmac’s statutory functions are defined under legislation administered alongside agencies such as the Ministry of Health (New Zealand) and executed by interaction with Crown entities like the District Health Boards (New Zealand), historically including the Auckland District Health Board and rural boards. Responsibilities include managing the national pharmaceutical schedule, entering into supply agreements with companies such as Roche, Novartis, and Sanofi, and administering special access schemes that have involved stakeholders like Cancer Society of New Zealand and patient organisations including Diabetes New Zealand. Pharmac’s remit also overlaps with international partners and comparators, for example the National Institute for Health and Care Excellence and Pharmaceutical Benefits Scheme frameworks.
Pharmac operates within a funding envelope provided through appropriations overseen by the Minister of Health (New Zealand), with accountability to the New Zealand Parliament and budget scrutiny by entities such as the Treasury (New Zealand). Decision-making is informed by health technology assessment methods used by organisations like the National Institute for Health and Care Excellence and clinical guidance from bodies including New Zealand Formulary contributors and specialist colleges such as the Royal Australasian College of Physicians and Royal New Zealand College of General Practitioners. Negotiations use commercial arrangements similar to those seen in deals struck by National Health Service (England), with procurement strategies influenced by examples from the Canadian Agency for Drugs and Technologies in Health.
The Pharmaceutical Schedule lists medicines subsidised for patients and is comparable in function to the PBS (Australia) and Medicare (United States). Funding criteria consider submissions from manufacturers like AstraZeneca and clinical societies such as New Zealand Society for Oncology, and apply cost-utility analyses referencing measures employed by the World Health Organization. High-cost therapies—such as those for conditions treated by Oncology specialists or rare diseases advocated for by groups like the Muscular Dystrophy Association of New Zealand—are assessed against thresholds similar to approaches by the Institute for Clinical and Economic Review.
Pharmac’s actions affect prescribing patterns in primary care nodes including General Practice (New Zealand) clinics and tertiary services at institutions like Auckland City Hospital and Christchurch Hospital. Its price negotiations have enabled wider use of vaccines administered through programmes overseen by the Immunisation Advisory Centre and influenced outcomes in chronic diseases managed by services such as Heart Foundation (New Zealand) initiatives and Asthma and Respiratory Foundation NZ. Comparative studies referencing systems like NHS England and PBS (Australia) discuss Pharmac’s role in achieving population-level cost savings and differential access to novel therapies.
Pharmac has been subject to criticism from patient advocacy groups such as Palmer United Party-aligned commentators, clinical advocates including campaigners for access to cancer drugs, and some members of the New Zealand Parliament. High-profile disputes have involved cases brought by individuals and organisations to the Health and Disability Commissioner (New Zealand) and judicial reviews in the High Court of New Zealand concerning decisions on funding for specific treatments. Debates also reference trade negotiation contexts involving the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and contestations about transparency compared with disclosure practices in agencies like the National Institute for Health and Care Excellence.
Pharmac is governed by a Board appointed under statutory provisions, with reporting lines to the Minister of Health (New Zealand) and scrutiny by oversight bodies including the Office of the Auditor-General (New Zealand) and parliamentary select committees such as the Health Committee (New Zealand House of Representatives). Its interactions involve other Crown entities like Pharmaceutical Society of New Zealand and regulatory agencies including Medsafe. Governance reforms and auditing processes have been debated in forums attended by stakeholders from the New Zealand Medical Association and consumer groups such as Consumer NZ.
Category:Health in New Zealand Category:Pharmaceutical industry