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19 April 2007 To All Pharmaceutical Suppliers, Hospital Pharmacists, Medical Groups and Interested Parties Consultation on provisional agreement with Arrow Pharmaceuticals for the purchase of ranitidine 150 mg tablets. PHARMAC has entered into a provisional agreement with Arrow Pharmaceuticals for the purchase of 160,000 packs of 10 x ranitidine 150 mg tablets for the purposes of distribution to health professionals as free samples as part of a social marketing campaign to promote the responsible use of medicines used in the treatment of indigestion, dyspepsia and heartburn. A proposal to approve the provisional agreement is expected to be considered by the PHARMAC Board or Acting Chief Executive (under delegated authority) in May 2007. PHARMAC is now seeking feedback on this proposal. If this proposal is approved the following provisions would apply: · PHARMAC would purchase 160,000 packs of 10 x ranitidine 150 mg tablets (the Sample Packs) from Arrow Pharmaceuticals at $1.15 per pack. · Arrow Pharmaceuticals would deliver the Sample Packs to a nominated distributor, who would distribute the Sample Packs to General Practitioners and Pharmacists as part of a social marketing campaign. · General Practitioners and Pharmacists would be able to distribute the Sample Packs free of charge to patients under their care (if considered clinically appropriate) in addition to social marketing resources. If you wish to make comments for the PHARMAC Board to consider when making its decision on whether to accept this proposal, please forward them to Karen Jacobs at PHARMAC by 5:00 pm, 4 May 2007. All comments submitted by this date will be considered by the Board or Acting Chief Executive when making their decision. Yours sincerely

Karen Jacobs Demand Side Manager

A117034