This is the text extract for Proposal relating to risperidone and quetiapine; Closing Date: Closed; Contact: Geraldine MacGibbon, browse documents here.

23 September 2011

Proposal to re-apply reference pricing across brands of risperidone and quetiapine

PHARMAC is seeking feedback on a proposal to re-apply reference pricing across different brands of risperidone tablets and oral liquid and across different brands of quetiapine tablets from 1 July 2012. In summary, this proposal would result in:  the subsidy for the Risperdal brand of risperidone tablets and oral liquid being reduced to the level of the subsidy for all other funded brands of risperidone tablets and oral liquid (as applicable) from 1 July 2012; and the subsidy for the Quetapel brand of quetiapine tablets being reduced to the level of the subsidy for all other funded brands of quetiapine tablets from 1 July 2012.

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If the suppliers of Risperdal (Janssen) and Quetapel (Mylan) did not reduce their prices to match the new subsidies, patients could either pay a manufacturer’s surcharge to remain on these brands or switch to any other funded brand to remain on a fully funded product. All other funded brands of risperidone (Apo-Risperidone, Dr Reddy’s Risperidone, Ridal and Risperon) and quetiapine (Dr Reddy’s Quetiapine and Seroquel) would remain fully funded. Risperidone orally-disintegrating tablets (Risperdal Quicklet) and injection (Risperdal Consta) would also remain fully funded. Details of the proposal and background information can be found on the following page.

Feedback sought PHARMAC welcomes feedback on this proposal. To provide feedback, please submit it in writing by 5 pm on Friday, 7 October 2011 to: Geraldine MacGibbon Therapeutic Group Manager PHARMAC Email: geraldine.macgibbon@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.

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Details of the proposal From 1 July 2012 the subsidy for the Risperdal brand of risperidone tablets and oral liquid would be reduced in Section B of the Pharmaceutical Schedule to the level of all other funded brands of risperidone tablets and oral liquid (as applicable) as follows (prices and subsidies expressed ex-manufacturer, excluding GST):

Chemical Risperidone Risperidone Risperidone Risperidone Risperidone Risperidone Presentation Tab 0.5 mg Tab 1 mg Tab 2 mg Tab 3 mg Tab 4 mg Oral liq 1 mg per ml Brand Risperdal Risperdal Risperdal Risperdal Risperdal Risperdal Pack size 20 60 60 60 60 30 ml Current price and subsidy $5.20 $30.77 $61.53 $92.32 $123.05 $45.92 Proposed subsidy $1.17 $6.00 $11.00 $15.00 $20.00 $18.35

From 1 July 2012 the subsidy for the Quetapel brand of quetiapine tablets would be reduced in Section B of the Pharmaceutical Schedule to the level of all other funded brands of quetiapine tablets as follows (ex-manufacturer, excluding GST):

Current price and subsidy $16.78 $32.59 $56.70 $95.40 Proposed subsidy $10.50 $21.00 $36.00 $60.00

Chemical Quetiapine Quetiapine Quetiapine Quetiapine

Presentation Tab 25 mg Tab 100 mg Tab 200 mg Tab 300 mg

Brand Quetapel Quetapel Quetapel Quetapel

Pack size 90 90 90 90

Background PHARMAC previously applied reference pricing across different brands of the antipsychotics risperidone and quetiapine from 1 June 2010 and 1 October 2010, respectively, where such reference pricing was possible in light of the contractual arrangements PHARMAC had with the different suppliers. At the time, reference pricing was not applied to Janssen’s brand of risperidone (Risperdal) or Mylan’s brand of quetiapine (Quetapel) due to these brands having protection from subsidy reduction until 1 July 2012. More information can be found in the consultation documents for the previous decisions at: www.pharmac.govt.nz/2010/02/15 and www.pharmac.govt.nz/2010/05/18 Of note, all funded generic brands of risperidone and quetiapine are registered by Medsafe and have demonstrated bioequivalence to the innovator brands (Risperdal and Seroquel, respectively), so we expect that patients would receive the same therapeutic benefit from any funded brand. If approved, this proposal would save approximately $2.5 million per year, which could be reinvested in other pharmaceuticals.

A455232T11-591

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