Radical prescription drug reform in New Zealand

By Candy Lashkari

Getting access to the latest medication may become a costly affair for New Zealanders. Talks on getting a Trans Pacific Strategic Economic Partnership between the US and New Zealand are taking place. The Researched Medicines Industry Association expects reforms from Pharmac the government’s drug buying agency if the deal is to go through. Some international drug companies have been angered by the control on drugs spending by Pharmac.

As part of the reforms New Zealand will have to consider the benefits of the medicines and the financial implications before reaching a decision. The “Radical Changes” being demanded by the US to the drug funding system in New Zealand is ruffling more than a few kiwi feathers.

Researched Medicines Industry Association said that any trade deal between the two countries would involve reforms at Pharmac "to align with practices in New Zealand with other trade agreements". The news comes after the health minister was handed over a review for expensive, highly specialized medication on 31 March.

Dr Chris Ellis, a heart specialist from Auckland said Pharmac needed to be changed for the good of patients, but not for reasons of free trade. Citing an example from the cardiac speciality, he said, "Pharmac doesn't allow New Zealanders to access new medicines for five to 10 years after they are widely used elsewhere in the world, and it waits until they are generic, until they are widely used."

Since Pharmac decides the drugs that the Government health system will use and negotiates the prices with the pharmaceutical companies, many international players keep the more expensive and better drugs away from the market in New Zealand. The system may keep the prices of drugs down, but is also not allowing new and more effective medication to become available easily in the market.

There is also a low number of New Zealand companies producing new medicines or under taking clinical trials. According to the Researched Medicines Industry Association this is mainly the fault of Pharmac as financial considerations do not allow the drug firms from developing new medicines at home.

This has made getting the latest medication from countries such as the US all the more critical for New Zealand. Health Minister Tony Ryall had a spokesman give out a statement yesterday saying "These suggestions are hypothetical and speculative and he won't be commenting."