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15 June 2009

Proposal relating to cyclosporin A and clozapine

PHARMAC and Novartis New Zealand Limited have entered into a provisional agreement relating to the supply of Neoral (cyclosporin A 25 mg, 50 mg and 100 mg capsules and 100 mg per mL oral liquid) and Clozaril (clozapine 25 mg and 100 mg tablets). The key aspects of the proposal are as follows: In relation to Neoral (cyclosporin A) · the Special Authority criteria applying to cyclosporin A would be removed from 1 September 2009, meaning that it would be subsidised when prescribed for indications other than those covered by the Special Authority; the prices and subsidies for Neoral would remain unchanged; from 1 September 2009 a rebate would apply to all Neoral community subsidies and hospital dispensings which would reduce the net effective price by up to 50%; and Neoral would have protection from subsidy reduction and delisting until 30 June 2010.

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In relation to Clozaril (clozapine) · · · the prices and subsidies for Clozaril would remain unchanged; a 50% rebate would apply to all Clozaril community subsidies and hospital dispensings from 1 June 2009 onwards; and Clozaril would have protection from subsidy reduction and delisting until 30 June 2012.

Feedback sought We welcome your feedback on this proposal. To provide feedback please submit an email, fax or letter by 4 pm, Tuesday 30 June 2009 to: Geraldine MacGibbon Therapeutic Group Manager PHARMAC PO Box 10-254 Wellington 6143 Email: geraldine.macgibbon@pharmac.govt.nz Fax: (04) 460 4995

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

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