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15 February 2008

Proposal for funding new products for malabsorption problems in children

PHARMAC is seeking public feedback on a proposal to fund new formulations of elemental formula used in the management of severe cow milk’s allergy and multiple food protein intolerance. This proposal arises from a provisional agreement being reached for Neocate, Neocate LCP and Neocate Advance with the supplier, Nutricia. If the proposal goes ahead, the new products would be funded from 1 April 2008. Proposal summary PHARMAC and Nutricia Limited have entered into a provisional agreement to: · · list Neocate LCP and Neocate Advance from 1 April 2008; continue the listing of Neocate from 1 April 2008;

Access to a subsidy for these products would be via the current Special Authority applying to elemental formula. There are some differences in the formulation of each of the products: · · · Neocate and Neocate LCP are suitable for infants up to 12 months of age; Neocate Advance is suitable for infants over the age of 12 months; and, Neocate LCP is enriched with long chain polysaturated fatty acids.

Feedback sought We welcome your feedback on this proposal. To provide feedback on this proposal please submit it in writing by 5pm, Friday, 29 February 2008 to: Maria Storey Therapeutic Group Manager PHARMAC PO Box 10-254 Wellington 6143 What will happen then? All of the submissions we receive before the deadline will be considered by PHARMAC’s Board (or Chief Executive, acting under delegated authority) when making a decision on whether to implement this proposal.

Pharmaceutical Management Agency Level 14, Cigna House, 40 Mercer Street, PO Box 10-254, Wellington 6143, New Zealand Phone: 64 4 460 4990 - Fax: 64 4 460 4995 - www.pharmac.govt.nz

Email: maria.storey@pharmac.govt.nz Fax: (04) 460 4995

If the proposal is approved, it is anticipated that the proposed changes would take effect from 1 April 2008. Details of the proposal · Neocate, Neocate LCP and Neocate Advance would be listed in the “For Gastrointestinal and other Malabsorptive Problems” section of Section D of the Pharmaceutical Schedule at the following prices and subsidies:

Chemical Elemental Formula Elemental Formula Elemental Formula Brand Neocate Neocate LCP Neocate Advance Form Powder Powder Powder Pack size 400 g OP 400 g OP 400 g OP Price $67.08 $67.08 $56.00 Subsidy $63.97 $63.97 $52.89

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Neocate, Neocate LCP and Neocate Advance would be subsidised for patients under the current Special Authority for “Infant formulae – For Gastrointestinal And Other Malabsorptive Problems”.

Pharmaceutical Management Agency Level 14, Cigna House, 40 Mercer Street, PO Box 10-254, Wellington 6143, New Zealand Phone: 64 4 460 4990 - Fax: 64 4 460 4995 - www.pharmac.govt.nz