PHARMAC tender for generic medicines contributes NZ$38 million savings

New Zealanders’ use of generic medicines is likely to grow further following the just-completed 2013/14 PHARMAC tender. The tender reached record levels this year, receiving nearly 3,500 offers to supply pharmaceuticals from 54 companies.

PHARMAC, New Zealand’s Pharmaceutical Management Agency, has now awarded 246 contracts from this tender process, likely to produce savings of around NZ$38 million ($32.2 million) - across hospital and community medicines - over three years.

“The savings from the tender are important for PHARMAC and serve two purposes,” says PHARMAC’s director of operations Sarah Fitt, adding: “Firstly we need to make savings to enable us to fund the growing volume of medicine that is used in New Zealand each year. And secondly, it can free up funding that we can then use to invest in new medicines. This enables us to produce greater health gains for New Zealanders, which is what PHARMAC is all about.”