This is the text extract for Consultation letter for AFT multi product agreement closes 13 March 2009, browse documents here.

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27 February 2009

Multi-product proposal including the listing of new brands of cilazapril and propofol and funding for danthron with poloxamer

PHARMAC and AFT Pharmaceuticals Ltd have entered into a provisional agreement relating to the supply of arsenic trioxide (AFT), benztropine mesylate (Benztrop), charcoal (Carbosorb-X), erythromycin lactobionate (Erythrocin IV), ferrous fumarate (Ferro-tab), ferrous fumarate with folic acid (Ferro-F-tab), methadone hydrochloride (AFT), procarbazine hydrochloride (Natulan), cilazapril (AFT), propofol (Provive 1%) and danthron with poloxamer (Pinorax and Pinorax Forte). In summary, the proposal would result in: § the listing of additional brands of cilazapril (subject to regulatory approval by Medsafe) and propofol on the Pharmaceutical Schedule; funding for danthron with poloxamer (subject to regulatory approval by Medsafe); a volume related price adjustment for the Provive 1% brand of propofol that would result in a 20% price reduction should Provive 1% obtain approximately 30% market share; an increase in the subsidy and price (where applicable) for arsenic trioxide, Benztrop, Carbosorb-X, Erythrocin IV, Ferro-tab, Ferro-F-tab, methadone hydrochloride and Natulan from 1 July 2009; delisting protection for AFT’s brand of cilazapril until 30 June 2010.

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Feedback sought PHARMAC welcomes feedback on this proposal. To provide feedback, please submit it in writing by Friday 13 March 2009 to: Mike Bignall Therapeutic Group Manager PHARMAC Email: mike.bignall@pharmac.govt.nz Fax: 04 460 4995 Post: PO Box 10 254, Wellington 6143

All feedback received before the closing date will be considered by PHARMAC’s Board (or Chief Executive acting under delegated authority) prior to making a decision on this proposal.

A265268 - T08-267 Page 1 of 3

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Details of the proposal § The prices and subsidies of the following pharmaceuticals listed in Section B and in Part II of Section H of the Pharmaceutical Schedule would be amended as follows from 1 July 2009 (ex manufacturer and ex GST):

Pack size 60 1 1 100 60 10 Current price and subsidy $7.25 $37.75 $6.50 $3.75 $3.95 $52.00 Proposed price and subsidy $7.99 $43.50 $10.93 $4.35 $4.75 $61.00

Chemical Benztropine mesylate Charcoal Erythromycin lactobionate Ferrous fumarate Ferrous fumarate with folic acid Methadone hydrochloride

Presentation

Brand

Tab 2 mg Oral liq 50 g in 250 ml Inj 1 mg Tab 200 mg Tab 310 mg ferrous fumarate with folic acid 350 µg Inj 10 mg per ml, 1 ml

Benztrop Carbosorb-X Erythrocin IV Ferro-tab Ferro-F-tab AFT

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The prices of the following pharmaceuticals listed in Part II of Section H of the Pharmaceutical Schedule would be amended as follows from 1 July 2009 (ex manufacturer and ex GST):

Chemical Arsenic trioxide Procarbazine hydrochloride Propofol Presentation Inj 10 mg Cap 50 mg Emulsion for injection 10 mg per ml, 20 ml Emulsion for injection 10 mg per ml, 50 ml Emulsion for injection 10 mg per ml, 100 ml Brand AFT Natulan Provive 1% Pack size 10 50 5 Current price $2,475.55 $133.00 $17.02 Proposed price $4,817.00 $225.00 $13.62

Propofol

Provive 1%

1

$9.26

$7.41

Propofol

Provive 1%

1

$15.46

$12.37

A265268 - T08-267 Page 2 of 3

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The following price volume adjustment would apply to Provite 1% based on it obtaining 30% market share (at the proposed new and lower prices):

Price volume adjusted price $10.21

Chemical

Presentation Emulsion for injection 10 mg per ml, 20 ml Emulsion for injection 10 mg per ml, 50 ml Emulsion for injection 10 mg per ml, 100 ml

Brand

Pack size

Propofol

Provive 1%

5

Propofol

Provive 1%

1

$5.56

Propofol

Provive 1%

1

$9.28

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The following pharmaceuticals would be listed in Section B and in Part II of Section H of the Pharmaceutical Schedule at the following prices and subsidies (ex manufacturer and ex GST) as soon as practical following all necessary consents being held:

Proposed price and subsidy $6.42 $13.17 $19.86 $9.50

Chemical Cilazapril Cilazapril Cilazapril Danthron with poloxamer Danthron with poloxamer

Presentation Tab 0.5 mg Tab 2.5 mg Tab 5 mg Oral liq 25 mg danthron with poloxamer 200 mg per 5 ml Oral liq 75 mg danthron with poloxamer 1 g per 5 ml

Brand AFT AFT AFT Pinorax Pinorax Forte

Pack size 100 100 100 300 ml

300 ml

$13.95

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AFT’s cilazapril would have delisting protection until 30 June 2010.

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