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10 September 2008 To all Pharmaceutical Suppliers

Request for information: topical anti-acne treatments

PHARMAC is currently investigating the feasibility of listing and subsidising without restriction a topical anti-acne treatment (or treatments) on the Pharmaceutical Schedule as a first line therapy for acne vulgaris. Background Up until 1997 PHARMAC subsidised the following anti-acne products on the Pharmaceutical Schedule without any restrictions: · · · · benzoyl peroxide (gel 2.5%; gel 5%; gel 10%; lotion 5%; lotion 10%); clindamycin phosphate (lotion 1%; solution 1%); erythromycin (solution 2%); and tretinoin (cream 0.05%; gel 0.05%; liquid 0.05%; lotion 0.05%).

In 1997 a review of topical anti-acne treatments was undertaken. Following this, all of the chemicals were removed from the Pharmaceutical Schedule, which resulted in no funded topical anti-acne treatments. There have been no changes to the funding status since 1997. The Pharmacology Advisory and Therapeutics Committee (PTAC) have considered antiacne treatments on two separate occasions in the last 12 months. PTAC recommended that a topical anti-acne treatment be listed on the Pharmaceutical Schedule and gave this recommendation a medium/high priority. PTAC also considered that a competitive process could be run for one topical anti-acne treatment. Request for Information Suppliers that are interested in entering into a supply agreement with PHARMAC for the listing of topical anti-acne treatments on the Pharmaceutical Schedule should register interest with PHARMAC, and include the following information (and any other information that you consider relevant): · · · · · ·

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chemical and strength; class/group of chemical – e.g. retinoid, benzoyl peroxide, antibiotic; preparation type(s) – e.g. cream, lotion, gel, solution; packaging and pack size(s); brand name; indicative prices; 1 of 2

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any necessary consent/registration requirements for your brand (and whether you hold them or are in the process of obtaining them); and any clinical evidence supporting the superiority of one chemical (or class/group of chemicals) over other chemicals (or class/group of chemicals).

In addition, suppliers may wish to include information on alternative pricing arrangements, which may include cross-deal or bundling arrangements in respect of more than one product, or caps, rebates or other expenditure risk-sharing mechanisms including for products already listed on the Pharmaceutical Schedule or funded by DHBs. Please note that this is not a request for proposals (RFP) for the supply of topical anti-acne treatments. This is an information gathering exercise and PHARMAC would like to hear from all interested parties. Following the below deadline for this information request PHARMAC will determine whether to: · hold a competitive process for the supply of a topical anti-acne treatment (or treatments), possibly by including topical anti-acne treatments in the 2008/09 annual multi-product tender later this year; or conduct further investigations into the feasibility into the listing of topical anti-acne treatments on the Pharmaceutical Schedule; or pursue other options (for example, negotiating with one or more suppliers or maintaining the status quo.)

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In order for all responses to be included in this review, please provide your response to Mike Bignall at PHARMAC by Wednesday, 8 October 2008. All responses received will be treated as commercial-in-confidence. If you have any particular questions in relation to this letter, please contact me on +64 4 916 7562, or by email: mike.bignall@pharmac.govt.nz. Yours sincerely

Mike Bignall Therapeutic Group Manager

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