New Zealand in deal with Mylan to list generic olanzapine and apply reference pricing across brands of the antipsychotic

New Zealand’s Pharmaceutical Management Agency (PHARMAC) has reached agreement with the local subsidiary of US generic drugmaker Mylan (Nasdaq: MYL) to fund a new brand of the atypical antipsychotics olanzapine tablets and orodispersible tablets, Olanzine and Olanzine-D, respectively, from June 1, 2011.

In addition, the PHARMAC Board has approved a proposal to apply reference pricing across brands of olanzapine in Section B of the Pharmaceutical Schedule from September 1, 2011. These proposals were the subject of a consultation letter dated October 4, 2010 which can be found on the Agency’s web site at: www.pharmac.govt.nz/2010/10/04.

Reference pricing will result in the subsidy for the Zyprexa and Zyprexa Zydis brands of olanzapine tablets and orodispersible tablets being reduced to the level of the subsidies for the equivalent forms and strengths of Olanzine and Olanzine-D from September 1, 2011.