This is the text extract for Proposal regarding a number of Abbott's Nutritional products; Closing Date: Closed; Contact: Stephen Woodruffe, browse documents here.

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14 May 2012

Proposal regarding a number of Abbott’s Nutritional products (Special Foods) and reference pricing of Amino Acid Infant formula

PHARMAC is seeking feedback on a proposal regarding the funding of a number of nutritional products (Special Foods). This is the result of a provisional agreement with Abbott Laboratories NZ Limited and includes new listings, price changes, and a proposal to reference price amino acid infant formula. In summary, it is proposed that:  The following additional products (supplied by Abbott) would be listed and fully funded from 1 September 2012: o o o o  Pediasure powder (paediatric oral feed) Two Cal HN RTH (enteral feed 2 kcal/ml) Nepro RTH (renal enteral feed 2 kcal/ml) Jevity HiCal RTH (enteral feed with fibre 1.5 kcal/ml)

The price and subsidy for the following products (supplied by Abbott) would change from 1 July 2012 (they would remain fully funded): o o standard supplement oral feed powder (Ensure powder); and, amino acid formula (Elecare brands).

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The subsidy provided for the Neocate brands of amino acid formula would be reduced from 1 July 2012 (through the application of reference pricing) to the level of subsidy provided for the Elecare brands of amino acid formula.

The above products (and pricing) would also be listed in Section H of the Pharmaceutical Schedule making them available for DHB hospitals to purchase at their discretion.

Feedback sought PHARMAC welcomes feedback on this proposal. To provide feedback, please submit it in writing by Tuesday, 29 May 2012 to: Stephen Woodruffe Therapeutic Group Manager PHARMAC Email: stephen.woodruffe@pharmac.govt.nz Phone: 04 916 7555

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

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Details of the proposals Funding of Additional Products From 1 September 2012, the following additional products would be listed, fully funded, in the Community (Section D of the Pharmaceutical Schedule) subject to the following prices, subsidies and Special Authority access criteria:

Special Food Brand Form Flavour Pack Size Proposed Special Price/Subsidy Authority Form $20.00 Paediatric Products (SA1100) Adult Products High Calorie (SA1195) Renal Products (SA1101) Standard Supplements (SA1104)

Paediatric oral feed

Pediasure

Powder

Vanilla

900 g OP

Enteral feed 2 kcal/ml Two Cal HN RTH Renal enteral feed 2 kcal/ml Nepro RTH

Liquid Liquid Liquid

N/A N/A N/A

1000 ml OP 500 ml OP 1000 ml OP

$11.00 $6.08 $7.00

Enteral feed with fibre Jevity HiCal RTH 1.5 kcal/ml

Note: The above products are additional Abbott presentations to those currently funded. The Special Foods Subcommittee of the Pharmacology and Therapeutics Advisory Committee (PTAC) has previously considered them clinically appropriate. Price and Subsidy Changes for Current Products From 1 July 2012, the currently funded ranges of Ensure powder (standard supplement) and Elecare infant formula (amino acid based) would be listed fully funded in the Community (Section D of the Pharmaceutical Schedule) under the current Special Authorities as follows:

Brand(s) Flavour Pack Size Current Proposed Special Price/Subsidy Price/Subsidy Authority Form Standard Supplements (SA1104) Amino Acid Formula (SA1111)

Ensure

Vanilla Chocolate

900 g OP

$9.50

$13.00

Elecare Elecare LCP

Unflavoured Vanilla

400 g OP

$56.00

$53.00

Note: A confidential rebate would apply to Ensure powder. Note: The Ensure and Elecare brands would have subsidy and delisting protection until 30 June 2013. Reference Pricing of Neocate Amino Acid Formula From 1 July 2012, the subsidy for the Neocate range of amino acid infant formula (Neocate, Neocate LCP, Neocate Advance and Neocate Gold) would be reduced to the level of subsidy ($53.00 per 400 g can) provided for the Elecare brands of amino acid infant formula (Elecare and Elecare LCP) through the application of reference pricing.

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The following table illustrates the proposed prices and subsidises for Neocate (exmanufacturer, excluding GST). If the supplier of Neocate chooses not to reduce its price for Neocate then it would be partially funded and patients would incur a part-charge.

Brand(s) Form Pack Size 400 g Current price/subsidy Proposed subsidy Special Authority Form Amino Acid Formula (SA1111)

Neocate (original, LCP, Advance and Gold)

Powder

$56.00

$53.00

Note: The Special Foods Subcommittee of PTAC considers Elecare and Neocate to have the same or similar clinical effect and that reference pricing between these brands is appropriate.

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