This is the text extract for Notification of agreement with Novartis, browse documents here.

4 December 2009

Proposal for cyclosporin, octreotide LAR and zoledronic acid approved

PHARMAC is pleased to announce that the approval of an agreement with Novartis New Zealand Limited for the supply of Neoral (cyclosporin 25 mg, 50 mg and 100 mg capsules and 100 mg per mL oral liquid), Sandostatin LAR (octreotide LAR 10 mg, 20 mg and 30 mg prefilled syringes) and Zometa (zoledronic acid solution for infusion 4 mg per 5 mL). This was the subject of a consultation letter dated 29 October 2009. This decision will result in: a reduction in the listed price and subsidy of Neoral; a further effective price reduction of up to 35% on Neoral, through a rebate arrangement; a reduction in the effective prices of Sandostatin LAR and Zometa through rebate arrangements; and subsidy and delisting protection being provided to the above products. This agreement arose as a result of our Alternative Commercial Proposal process, in which we invite alternatives to tendering.

Details of the decision Neoral (cyclosporin) From 1 January 2010 the prices and subsidies for Neoral in Section B and Part II of Section H of the Pharmaceutical Schedule will be reduced as follows:

Chemical Cyclosporin Cyclosporin Cyclosporin Cyclosporin Presentation 25 mg capsule 50 mg capsule 100 mg capsule 100 mg per mL oral liquid Pack size 50 50 50 50 mL OP Current price and subsidy $85.00 $169.34 $338.69 $377.38 New price and subsidy $59.50 $118.54 $237.08 $264.17

from 1 January 2010 the current rebate applying to all Neoral community subsidies and hospital dispensings will be amended such that the effective price will be reduced by up to 35% off the list price; and Neoral will have protection from subsidy reduction and delisting until 30 June 2012.

A324247 - T09-389 Page 1 of 2

Sandostatin LAR (octreotide LAR) The prices and subsidies for Sandostatin LAR, as currently listed in Section B and Part II of Section H of the Pharmaceutical Schedule, will remain unchanged; From 1 January 2010 the current confidential rebate applying to all Sandostatin LAR expenditure in the community and DHB hospital markets will be increased; and Sandostatin LAR will have protection from subsidy reduction and delisting until 31 December 2011. Zometa (zoledronic acid) The price for Zometa in Part II of Section H of the Pharmaceutical Schedule will remain unchanged; From 1 January 2010 the current confidential rebate applying to all Zometa expenditure in the DHB hospital markets will be increased; and Zometa will have protection from delisting until 30 June 2012.

Feedback received We appreciate all of the feedback that we received and acknowledge the time people took to respond. All consultation responses received by 12 November 2009 were considered in their entirety in making a decision on the proposed changes. All responses were supportive of the proposal and no issues with the proposal were raised.

More information If you have any questions about this decision, you can call our toll free number (9 am to 5 pm, Monday to Friday) on 0800 66 00 50.

A324247 - T09-389 Page 2 of 2