About PHARMAC
Important events in PHARMAC's history
June 1993
- PHARMAC established as a joint venture company owned by the four Regional Health Authorities.
- David Moore is the first General Manager and Denis Tait is the chairman of the Board.
- PHARMAC begins the compilation and publication of the Pharmaceutical Schedule.
June 1994
- Achieved savings of $3.1 million in its first full year of operation.
- Created a defined set of decision criteria.
- Formalised its Operating Policies and Procedures.
- Halved the growth in pharmaceutical expenditure to 5 percent per annum.
July 1995
- First court papers filed challenging PHARMAC.
1996-97
- First tender (for one product, paracetamol), leads to 44 percent price reduction.
- Savings reach $48 million by June 1996.
1997-98
- Reference pricing of ACE Inhibitors leads to an expected $150 million saving on anti-hypertension drugs over the next six years.
- Decisions in the High Court and Court of Appeal and the Privy Council uphold PHARMAC’s procedures in pharmaceutical expenditure management, and its exemption from the Commerce Act.
- Cumulative savings surpass $250 million.
1998
- Wayne McNee appointed General Manager of PHARMAC (November).
1999
- Health Minister Jenny Shipley launches the Wise Use of Antibiotics campaign, the first nationwide public information campaign to be funded and co-ordinated by PHARMAC.
- Dr Peter Moodie appointed Medical Director.
- First multi-product tender produces savings of about $6.5 million per year.
- Cumulative savings reach $650 million.
2000
- Richard Waddel succeeds Denis Tait as PHARMAC Board chairman.
- PHARMAC initiates a review of its Operating Policies and Procedures.
2001
- PHARMAC becomes a stand-alone Crown Entity, with an independent Board.
- PHARMAC takes over management of the Exceptional Circumstances scheme from the Ministry of Health
- Wayne McNee becomes the first PHARMAC Chief Executive.
- Cumulative savings surpass $1 billion.
- Hui held to consult on PHARMAC’s Maori Responsiveness Strategy.
2002
- PHARMAC takes on the management of hospital pharmaceutical purchasing.
- Hospital Pharmaceuticals Advisory Committee (HPAC) established.
- Consumer Advisory Committee (CAC) established. Sandra Coney is appointed the committee’s chair.
- Review of the Pharmacology and Therapeutics Advisory Committee (PTAC)’s guidelines, and of the scope and memberships of its subcommittees, is completed.
- Exceptional Circumstances comes under PHARMAC management.
2003
- Cumulative savings from PHARMAC’s policies surpass $2 billion.
- The Wise Use of Antibiotics campaign enters its fifth year – to date has contributed to a 16 percent drop in antibiotic prescribing.
- The 2002-03 tender calls for bids for over 1000 line items, and produces savings of about $23 million.
2004
- PHARMAC assumes responsibility for purchasing influenza vaccine.
- Pilots of One Heart Many Lives cardiovascular risk management campaign take place in Porirua, Gisborne.
2005
- Centralised purchasing of haemophilia products produces savings of $30 million.
- DHBs seek PHARMAC assistance in purchasing some products used in DHB hospitals – radiological contrast media; bulk intravenous fluids.
- Review of Operating Policies and Procedures underway.
2006
- Matthew Brougham appointed Acting Chief Executive.
- One Heart Many Lives expands into Hawke’s Bay, Northland.
- Further projects initiated to assist spending by DHBs in their hospitals.
2007
- PHARMAC launches Gut Reaction campaign for heart burn and dyspesia.
- Wise Use of Antibiotics enters 10th year with new look and animated TV commercials.
Page updated on 13 Feb 2008
