This is the text extract for Consultation on a proposal from Bristol-Myers Squibb, browse documents here.

7 November 2003 Total pages – 4 To all interested parties

Consultation on a proposal from Bristol-Myers Squibb in relation to the supply of various pharmaceuticals to DHB Hospitals and Community Pharmacies Following receipt of proposals from Bristol-Myers Squibb (BMS) in response to PHARMAC’s 16 July 2003 Request for Proposals to supply pharmaceuticals to District Health Board (DHB) hospitals and PHARMAC’s 5 September 2003 Request for Proposals to supply pharmaceuticals to Community Pharmacies, PHARMAC has signed a provisional agreement with BMS involving a number of pharmaceuticals for supply to DHB Hospitals and/or Community Pharmacies. The main features of the proposal are outlined further in this letter. The PHARMAC Board/Chief Executive under Delegated Authority will consider this proposal in November 2003. If you have comments to make on this proposal and would like those comments to be considered by the PHARMAC Board/Chief Executive then please send them to Matthew Perkins at PHARMAC by 5p.m. on Friday, 21 November 2003. The PHARMAC Board/Chief Executive will consider all comments received by this date. The provisional agreement covers both hospital and community supply for some pharmaceuticals. It is indicated for each pharmaceutical in this letter whether the pharmaceutical or associated proposal relates to hospital or community supply or both. For ease of reference, the pharmaceuticals associated with this proposal are as follows: Hospital Pharmaceuticals: • paclitaxel (Taxol) • dicloxacillin sodium (Diclocil) • triamcinolone acetonide (Kenacort A and Kenacort A 40) • etoposide (Vepesid) • hydroxyurea (Hydrea) • megestrol acetate (Megace) Community Pharmaceuticals • dicloxacillin sodium (Diclocil) • triamcinolone acetonide (Kenacort A and Kenacort A 40) • etoposide (Vepesid) • hydroxyurea (Hydrea) • megestrol acetate (Megace) Overview of proposal If this proposal is accepted, Hospital Supply Status (HSS – as defined in Section H of the Pharmaceutical Schedule) would be awarded to Taxol and Diclocil until 30 June 2005 with the

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provision for the HSS period to be extended for an additional 12 months by mutual agreement. There would be a 3 month period following notification before DHB Hospitals were required to comply with any DV Limits. All other hospital products involved in this proposal would be listed on Section H from 1 January 2004 at the prices indicated in Table One attached; however no market exclusivity would be provided for these products. It is proposed that from 1 January 2004, BMS would supply Taxol to DHB Hospitals or their purchasers at the prices set out in Table One subject to discounts which would be indicated on the relevant invoices. DHB Hospitals may verify the level of these discounts with PHARMAC. Additionally, Taxol would be invoiced with an additional discount once certain pre-agreed national volumes had been reached. All community products involved in this proposal are currently listed on the Pharmaceutical Schedule. Price reductions for these products, as outlined in Table T wo, would occur on 1 January 2004. It is further proposed that Diclocil 1 g vials would be listed on Practitioner’s Supply Order in Section E of the Pharmaceutical Schedule following a positive PTAC recommendation and subsequent PHARMAC Board/Chief Executive approval. PHARMAC would agree not to reference price or award sole subsidised supply or HSS for Kenacort, Vepesid, Hydrea and Megace prior to 30 June 2006. Attachments Table One (attached) sets out the pharmaceuticals supplied by BMS to which PHARMAC proposes to list on Section H and, where applicable, award Hospital Supply Status, the associated Discretionary Variance (DV) Limits, and DV Pharmaceuticals (all as defined in Section H of the Pharmaceutical Schedule). Table Two (attached) sets out the pharmaceuticals supplied by BMS that would have their listing on Section B of the Pharmaceutical Schedule amended from 1 January 2004. Feedback If you wish to make comments on this proposal, please forward them to PHARMAC by 5 p.m. on Friday, 21 November 2003. Should you have any questions regarding aspects of this proposal please contact Steffan Crausaz (04 9167 525; steffan.crausaz@pharmac.govt.nz) or myself (04 9167 504; matthew.perkins@pharmac.govt.nz). Yours sincerely

Matthew Perkins Hospital Pharmaceuticals Contracts Manager

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TABLE ONE – Products to be supplied to DHB Hospitals and listed on Section H of the Pharmaceutical Schedule

Pharmaceutical Paclitaxel Paclitaxel Dicloxacillin sodium Dicloxacillin sodium Triamcinolone acetonide Triamcinolone acetonide Triamcinolone acetonide Triamcinolone acetonide Brand Taxol Taxol Diclocil Diclocil Form Vial Vial Vial Vial Strength Price DV (Exclusive of Pack Size DV Limit Pharmaceuticals GST) Brand (Supplier) ($NZ) 1 320.00ö 0% (B) 1 1066.67ö 0% (B) 5 5.45 0% (B) 5 7.54 0% (B) n.a. n.a. n.a. n.a.

Etoposide n.a. Etoposide n.a. Hydroxyurea n.a. Megestrol acetate n.a. Note: Products listed with DV H of the Pharmaceutical Schedule. ö Subject to confidential discounting upon invoice arrangement with additional discount once pre-agreed volume levels have been reached.

30 mg 100 mg 500 mg 1g 10 mg per ml, Kenacort A Vial 1 10.31 5 ml 10 mg per ml, Kenacort A Ampoule 5 11.11 1 ml 40 mg per ml, Kenacort A40 Vial 1 23.44 5 ml 40 mg per ml, Kenacort A40 Ampoule 5 28.09 1 ml Vepesid Capsule 50 mg 20 340.73 Vepesid Capsule 100 mg 10 340.73 Hydrea Capsule 500 mg 100 31.76 Megace Tablet 160 mg 30 74.25 Pharmaceuticals of (B) are subject only to part (b) of the definition of “DV Pharmaceutical” in the Section

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TABLE TWO – Products to be supplied to Community Pharmacies and listed in Sections B-G of the Pharmaceutical Schedule

Pharmaceutical Dicloxacillin sodium Dicloxacillin sodium Triamcinolone acetonide Triamcinolone acetonide Triamcinolone acetonide Triamcinolone acetonide Etoposide Etoposide Hydroxyurea Megestrol acetate Brand Diclocil Diclocil Kenacort A Kenacort A Kenacort A40 Kenacort A40 Vepesid Vepesid Hydrea Megace Form Vial Vial Vial Ampoule Vial Ampoule Capsule Capsule Capsule Tablet Strength 500 mg 1g 10 mg per ml, 5 ml 10 mg per ml, 1 ml 40 mg per ml, 5 ml 40 mg per ml, 1 ml 50 mg 100 mg 500 mg 160 mg Pack Size 5 5 1 5 1 5 20 10 100 30 Current price (Current subsidy)* ($NZ) 7.90 (6.80) 13.50 (10.20) 12.50 13.47 28.41 34.05 413.00 413.00 38.50 90.00 Price and subsidy (ex man. Excl GST) ($NZ) 5.45 7.54 10.31 11.11 23.44 28.09 340.73 340.73 31.76 74.25

Note: * Current subsidy only shown if product currently not fully subsidised.

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