Promoting competition key to improving patients’ access to high cost medicines, says PHARMAC

New Zealand’s Pharmaceutical Management Agency, PHARMAC, has announced its intention to test out a contestable fund for high cost medicines for rare disorders, which could be seeking proposals from pharmaceutical companies by the end of 2014. The fund is a response to concerns about access to these medicines that PHARMAC has been hearing from patients through forums and consultations in recent months.

Promoting competition among suppliers could be the key to improving patients’ access to high cost medicines for rare disorders, says chief executive Steffan Crausaz. “We’ve listened closely to these views, and thought about them carefully. Our thinking leads us to the view that the core problem is a lack of competition,” he added.

Mr Crausaz continued: “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. Ultimately, that’s what this fund is about.”