Consultation on possible brand changes through the annual tender

28 May 2025

Medicines Consultation Closes 16 Jun

We are seeking feedback on possible brand changes for medicines in Pharmac’s annual tender

Pharmac is seeking feedback on possible brand changes through our 2024/25 Annual Invitation to Tender. In particular, we’re wanting feedback on how a brand change could be managed to best support people taking these medicines.

No decisions about brand changes for these medicines have been made. We will use your feedback to help us make an informed decision about whether to change the funded brands of these medicines.

The medicines are from the following therapeutic groups, as listed in the Pharmaceutical Schedule (the list of funded medicines). A brief explanation of the treatment areas for each therapeutic group is also provided in brackets:

Alimentary Tract and Metabolism (digestive issues and metabolic disorders)
Anti-Infectives (bacterial and other infections)
Blood and Blood Forming Organs (disorders that affect blood and its components)
Cardiovascular System (heart and blood vessel conditions)
Dermatologicals (skin conditions)
Genito Urinary System (urinary and reproductive system issues)
Hormones (conditions requiring regulation or replacement of hormones)
Musculoskeletal System (conditions affecting bones, muscles and joints)
Nervous System (includes analgesics, anaesthetics, neurological conditions, mental health, and dementia)
Oncology Agents (cancer)
Respiratory System and Allergies (lung conditions and allergies)
Sensory Organs (eye and ear conditions).

We’re doing this because it’s important to us that annual tender decisions are informed by the experiences of people taking the medicines, and those who support them, including clinicians and caregivers.

The annual tender is a key tool for Pharmac to release savings from funded medicines that can then be used to fund more medicines for New Zealanders.

Last year we made several decisions through annual tender process that resulted in changes to the brands of funded medicines. Pharmac acknowledges that in previous years people weren’t consulted enough about tender brand changes. We have learnt valuable lessons from this experience, and that’s why we’re adding this additional consultation step, so we can better understand what a brand change could mean for people and how we could best support a change.

Consultation closes at 4 pm Monday 16 June. You can email feedback to tenderconsult@pharmac.govt.nz or

Complete the online form

Pharmac staff explain the tender process and this consultation

View transcript

[Nat James] The annual tender is one of the ways that Pharmac manages how much New Zealand spends on medicines each year. We're given a fixed budget by the government to spend on the medicines that we fund and that money needs to pay for all the medicines we already fund. If there's money available after that, we can look at funding new medicines.

The annual tender process is really important because it allows Pharmac to free up funds and that's usually somewhere between $30 and $50 million a year. We can then use that money to fund more medicines.

When a medicine is no longer under patent, suppliers are able to manufacture and sell generic versions of that medicine so that means the same medicine but with a different manufacturer and a different brand name. This allows for competition which can lead to significant price reductions for the medicines that are already funded in New Zealand.

[Geraldine MacGibbon] So a really important part of our tender process is understanding the impact of brand changes on people who need those medicines. Last year we heard really clearly from the community that we could do a better job about consulting with them on brand changes that we might be making.

We're adding a new step to the annual tender process: an additional consultation step to seek feedback from people prescribing dispensing and taking these medicines about the impact of a potential brand change. We're adding this extra step because it's really important to us that our decisions are informed by people's lived experiences.

[Nat James] In addition to the consultation, we also have our tender advisory committee and that's a group made up of doctors, pharmacists, nurses, and other clinical specialists. They provide input around items that we're considering for tender. Once we've considered their advice and the advice from that consult, we invite suppliers to submit their commercial bids.

This process closes in December and then once we receive those bids, we're in a position to start evaluating them. This year we're carrying out an extra consultation step as part of our annual tender because we'd like to give people who use these medicines the opportunity to share with us what the impact might be and let us know if there's any support that would be required. We expect that the 2025 to 26 annual tender will have a slightly different timeline as we work through changes to improve how we consult.

We will be encouraging people to give us feedback via an online form. We'll be asking if you use the medicine, if you're a health professional that supports patients, or if you're a supplier of that medicine. We'll also be asking what support people might need and what the impacts of a potential brand change might be.

What you can tell us

For each medicine:

For the proposed medicines where there is currently more than one funded brand, would there be any issues in moving to a single funded brand?
What would be the key issues for Pharmac to consider if there was a change in funded brand for the proposed medicines?
In addition to the things we usually evaluate are there any features of the medicines that we should consider, for example pack sizes?
Are there any groups of people where it would be clinically inappropriate, or more difficult, to undergo a brand change for a particular medicine? If yes, please provide detail.
What support or resources would people using these medicines need if a brand change were to occur?
What support or resources would healthcare professionals prescribing or dispensing these medicines need if a brand change were to occur?
Besides the things that we already consider when making a tender decision, are there any additional features of the proposed medicines that should be considered?

We welcome any other feedback you may wish to provide.

About the annual tender

How the annual tender works

The annual invitation to tender (“the annual tender”) is a procurement process that Pharmac runs each year. It gives suppliers the opportunity to bid for supply of a large range of different medicines (350 to 600 line items per tender). Suppliers bid to have “Principal Supply Status” which means that if they are selected, they become the main supplier of that medicine in New Zealand with a guaranteed supply of at least 95% of the total funded market.

The annual tender is one of the ways that Pharmac manages New Zealand’s spend on medicines. It is key in helping Pharmac keep up with increasing demand for medicines we fund, and to fund new and innovative medicines. It means we can secure ongoing supply to help reduce the likelihood of stock issues, as well as decreasing cost so we can invest in more medicines.

The Funding Process - The Annual Tender

What is the Alternative Brand Allowance

The alternative brand allowance (ABA) refers to a specific percentage of the funded market of a medicine that can be funded as an alternative brand, rather than the Principal Supply Status brand. This allowance provides flexibility for people in situations where they cannot take the Principal Supply Status brand.

In most cases, the Principal Supply Status brand is the only brand listed on the Pharmaceutical Schedule, and ABA use is generally managed through Pharmac’s exceptions processes.

The ABA percentage for each medicine included in this proposal is specified in the table

What are the possible outcomes from the annual tender?

When Pharmac makes decisions to award a tender for a currently funded medicine, there are three main outcomes, as summarised below.

If the brand awarded the tender was already the only funded brand

There would be no noticeable difference for people using the medicine, although the price that Pharmac pays may change.

If the brand awarded the tender was one of multiple funded brands

People would need to move to the brand that has been awarded the tender over time. This usually happens over five months. After this, the other brand(s) would no longer be funded by Pharmac.

If the brand awarded the tender was not already funded

People would need to move to the new brand that has been awarded the tender over time. This usually happens over five months. After this, any other brands that were funded would no longer be funded by Pharmac.

What we consider when we make decisions to award tenders

Clinical and technical advice is an important part of the review of the tender bids that are received. Pharmac gets this advice from the Tender Clinical Advisory Committee. This Committee is made up of a range of health professionals including community and hospital pharmacists, a Specialist GP, Nurse Practitioners and an anaesthetist. Their role is to evaluate:

the packaging – is it easy to store, is it easy to get into
the labelling – is it easy to read and understand and follows the Pharmac labelling guidelines
the tablets – is it easy to break along the score lines, are they easy to swallow
the taste – will the taste of the medicine deter some people from taking the medicine
risk – is it okay for a medicine to have Principal Supply Status
other clinical and technical details

The links below contain further information:

Tender Clinical Advisory Committee membership

Pharmac labelling guidelines

In addition to this evaluation, Pharmac also considers other factors as part of our assessment against our decision-making framework, the Factors for Consideration. We look at things like:

Does the supplier have a good supply record? Do we have confidence that the supplier can meet demand?
Is the brand approved by Medsafe?
Is the price sustainable? Would it provide savings which can be used to invest in more medicines?
Are there groups of people for whom a brand change would not be appropriate and if so, what actions can we take to mitigate or prevent impacts from this on people and their families, whānau?

A brand change can often be from the original brand to a generic brand, or between different generic brands of a medicine. Generic medicines have the same active ingredients and work in the same way as the original brand. Generic medicines can look different to the original brand. Any generic medicine considered for a brand change must be approved by Medsafe before Pharmac will fund it. The Medsafe approval process includes ensuring that the brand meets acceptable standards and works as well as the original brand.

About generic medicines

Medsafe’s Q&A on Generic Medicines(external link)

Before a decision to change the funded brand of a medicine is made it’s important that we also hear from consumers and healthcare professionals who use and prescribe these medicines. We want to understand how a brand change would impact people using the medicines included in this proposal and how this could be managed.

What does this mean for medicines included in this consultation?

If we award a tender for a particular brand of medicine to a pharmaceutical supplier, then that supplier’s brand would become the main funded brand of that medicine. For medicines included in this consultation, it would be the main funded brand until 30 June 2028. The brand change transitions would start at different times for different medicines, depending on when a decision is made and when the successful supplier expects to be able to have enough stock to supply the New Zealand market.

The specifics of the brand(s) being proposed have not been included, due to the commercially sensitive nature of this information. At this stage we are wanting to understand how a brand change would impact people using these medicines.

No decisions have been made yet as to whether the brand of these medicines would change. The funded brand(s), pricing and timeframes for any change would be confirmed as part of a future decision. We will incorporate the feedback received through this consultation to help inform any decision, and our decisions will be publicly notified.

Medicines with possible brand changes table [PDF 144 KB]

Medicines with possible brand changes

Therapeutic group	Medicine	Current funded brand(s)	What medicine is used for	ABA
Alimentary Tract and Metabolism	Bisacodyl Tab 5 mg	Bisacodyl Viatris	Bisacodyl is used for short term relief of constipation.	5%
Alimentary Tract and Metabolism	Docusate sodium with sennosides Tab 50 mg with sennosides 8 mg	Laxsol	Docusate sodium with sennosides is a combination medicine used to treat constipation.	5%
Alimentary Tract and Metabolism	Ferrous Sulphate Oral liq 30 mg (6 mg elemental) per ml	Ferodan Ferro-Liquid	Ferrous sulphate is an iron supplement used to treat and prevent iron deficiency.	5%
Alimentary Tract and Metabolism	Ferrous Sulphate Tab long-acting 325 mg	Ferrograd	Ferrous sulphate is an iron supplement used to treat and prevent iron deficiency.	5%
Alimentary Tract and Metabolism	Glycopyrronium bromide Inj 0.2 mg per ml, 1 ml	Robinul	Glycopyrronium bromide is an antimuscarinic agent used to reduce secretions like saliva and mucus.	5%
Anti-Infectives	Amoxicillin Cap 500 mg	Miro-Amoxicillin	Amoxicillin is a penicillin antibiotic. It is used to treat bacterial infections.	5%
Anti-Infectives	Cefalexin monohydrate Cap 250 mg	Cephalexin ABM	Cefalexin monohydrate is a cephalosporin antibiotic used to treat a variety of bacterial infections.	5%
Anti-Infectives	Cefalexin monohydrate Cap 500 mg	Cephalexin ABM	Cefalexin monohydrate is a cephalosporin antibiotic used to treat a variety of bacterial infections.	5%
Anti-Infectives	Cefalexin monohydrate Grans for oral liq 25 mg per ml	Flynn	Cefalexin monohydrate is a cephalosporin antibiotic used to treat a variety of bacterial infections.	5%
Anti-Infectives	Cefalexin monohydrate Grans for oral liq 50 mg per ml	Flynn Cefalexin Sandoz	Cefalexin monohydrate is a cephalosporin antibiotic used to treat a variety of bacterial infections.	5%
Anti-Infectives	Daptomycin Inj 350 mg – 500 mg	Daptomycin Dr Reddy's	Daptomycin is a lipopeptide antibiotic used to treat serious bacterial infections.	5%
Anti-Infectives	Methenamine (hexamine) Hippurate Tab 1 mg	Hiprex	Methenamine (also known as hexamine) hippurate is a medicine used to prevent urinary tract infections (UTIs).	5%
Anti-Infectives	Phenoxymethylpenicillin (penicillin V) Grans for oral liq 125 mg per 5 ml	AFT	Phenoxymethylpenicillin, also known as penicillin V, is an antibiotic used to treat various bacterial infections.	5%
Anti-Infectives	Phenoxymethylpenicillin (penicillin V) Grans for oral liq 250 mg per 5 ml	AFT	Phenoxymethylpenicillin, also known as penicillin V, is an antibiotic used to treat various bacterial infections.	5%
Blood and Blood Forming Organs	Compound electrolytes with glucose [dextrose] Soln with electrolytes	Hydralyte - Lemonade	Compound electrolytes with glucose (dextrose) is a solution used to treat dehydration, electrolyte imbalances, and provide a source of calories.	5%
Blood and Blood Forming Organs	Heparin Sodium Inj 5,000 iu per ml, 5 ml	Heparin Sodium Panpharma	Heparin sodium is an anticoagulant medicine used to prevent and treat blood clots.	5%
Blood and Blood Forming Organs	Sodium chloride Inj 0.9%, 3 ml, prefilled syringe	BD PosiFlush	Sodium chloride prefilled syringes are used to flush intravenous lines to prevent blockages and reduce the risk of infection.	5%
Blood and Blood Forming Organs	Sodium chloride Inj 0.9%, 5 ml, prefilled syringe	BD PosiFlush	Sodium chloride prefilled syringes are used to flush intravenous lines to prevent blockages and reduce the risk of infection.	5%
Blood and Blood Forming Organs	Sodium chloride Inj 0.9%, 10 ml, prefilled syringe	BD PosiFlush	Sodium chloride prefilled syringes are used to flush intravenous lines to prevent blockages and reduce the risk of infection.	5%
Blood and Blood Forming Organs	Water for injection Purified for inj, 20 ml	Fresenius Kabi	Water for injection is used to dissolve or dilute medicines which may then be injected. It can also be used for washing and cleaning purposes during minor surgical procedures, and to clean wounds.	5%
Blood and Blood Forming Organs	Water for injection Purified for inj, 500 ml bag	Any Brand	Water for injection is used to dissolve or dilute medicines which may then be injected. It can also be used for washing and cleaning purposes during minor surgical procedures, and to clean wounds.	5%
Cardiovascular System	Enalapril Tab 5 mg	Acetec	Enalapril is an angiotensin-converting enzyme (ACE) inhibitor. It's used to treat high blood pressure (hypertension) and heart failure.	5%
Cardiovascular System	Enalapril Tab 10 mg	Acetec	Enalapril is an angiotensin-converting enzyme (ACE) inhibitor. It's used to treat high blood pressure (hypertension) and heart failure.	5%
Cardiovascular System	Enalapril Tab 20 mg	Acetec	Enalapril is an angiotensin-converting enzyme (ACE) inhibitor. It's used to treat high blood pressure (hypertension) and heart failure.	5%
Cardiovascular System	Furosemide [Frusemide] Inj 10 mg per ml, 2 ml	Furosemide-Baxter	Furosemide (also known as frusemide) is a medicine used to treat fluid retention and high blood pressure.	5%
Cardiovascular System	Losartan with hydrochlorothiazide Tab 50 mg with hydrochlorothiazide 12.5 mg	Arrow-Losartan & Hydrochlorothiazide	Losartan with hydrochlorothiazide is a combination medicine used to treat high blood pressure (hypertension).	5%
Cardiovascular System	Noradrenaline Inj 1 mg per ml, 4 ml ampoule	Noradrenaline BNM	Noradrenaline also known as norepinephrine is used in emergency situations to increase and maintain blood pressure in patients with severe low blood pressure (hypotension).	5%
Genito Urinary	Ethinyloestradiol with levonorgestrel Tab 20 mcg with levonorgestrel 100 mcg and 7 inert tabs	Lo-Oralcon 20 ED	Ethinyloestradiol with levonorgestrel is a combination hormonal contraceptive used to prevent pregnancy.	5%
Genito Urinary	Ethinyloestradiol with levonorgestrel Tab 30 mcg with levonorgestrel 150 mcg	Microgynon 30	Ethinyloestradiol with levonorgestrel is a combination hormonal contraceptive used to prevent pregnancy.	5%
Genito Urinary	Ethinyloestradiol with levonorgestrel Tab 30 mcg with levonorgestrel 150 mcg and 7 inert tabs	Oralcon 30 ED	Ethinyloestradiol with levonorgestrel is a combination hormonal contraceptive used to prevent pregnancy.	5%
Genito Urinary	Levonorgestrel Tab 1.5 mg	Levonorgestrel BNM	Levonorgestrel is a hormonal medicine used for emergency contraception to prevent pregnancy.	5%
Hormone Preparations	Dexamethasone phosphate Inj 4 mg per ml, 1 ml	Hameln	Dexamethasone phosphate is a type of corticosteroid medicine used to reduce inflammation and supress the immune system.	5%
Hormone Preparations	Dexamethasone phosphate Inj 4 mg per ml, 2 ml	Hameln	Dexamethasone phosphate is a type of corticosteroid medicine used to reduce inflammation and supress the immune system.	5%
Hormone Preparations	Testosterone undecanoate Inj 250 mg per ml	Reandron 1000	Testosterone undecanoate is a long-acting form of testosterone and it helps increase testosterone levels in the body.	5%
Musculoskeletal System	Celecoxib Cap 200 mg	Celecoxib Pfizer Celebrex	Celecoxib is a nonsteroidal anti-inflammatory (NSAID) medicine used to relieve pain and inflammation.	5%
Musculoskeletal System	Colchicine Tab 500 mcg	Colgout	Colchicine is a medicine used to treat and prevent gout attacks and other inflammatory conditions. Colchicine works by reducing inflammation and decreasing the build-up of uric acid crystals in the joints.	5%
Musculoskeletal System	Rocuronium bromide Inj 10 mg per ml, 5 ml	Hameln	Rocuronium bromide is a medicine used as a muscle relaxant during surgery and other medical procedures.	5%
Nervous System	Citalopram hydrobromide Tab 20 mg	Celapram	Citalopram hydrobromide is a selective serotonin reuptake inhibitor (SSRI) medicine which is used to treat depression.	5%
Nervous System	Droperidol Inj 2.5 mg per ml, 1 ml	Droperidol Panpharma	Droperidol is a medicine used to prevent nausea and vomiting that may occur after surgery or diagnostic procedures.	5%
Nervous System	Fluoxetine hydrochloride Cap 20 mg	Arrow-Fluoxetine	Fluoxetine hydrochloride is a medicine used to treat various mental health conditions like major depressive disorder, obsessive-compulsive disorder (OCD), bulimia nervosa, panic disorder, and premenstrual dysphoric disorder (PMDD).	5%
Nervous System	Lidocaine [lignocaine] hydrochloride Oral [gel] 2%	Mucosoothe	Lidocaine [lignocaine] hydrochloride is a local anaesthetic and antiarrhythmic drug. It's used to numb specific areas of the body during minor surgical procedures, dental work, or other medical procedures.	5%
Nervous System	Methadone hydrochloride Tab 5 mg	Methadone BNM	Methadone hydrochloride is a medicine used for the relief of moderate to severe pain, for example pain caused by a terminal illness such as cancer.	5%
Nervous System	Metoclopramide hydrochloride Inj 5 mg per ml, 2 ml	Baxter	Metoclopramide hydrochloride is a medicine used to help with certain stomach and digestive issues.	5%
Nervous System	Paracetamol Oral liq 120 mg per 5 ml	Paracetamol (Ethics)	Paracetamol is a medicine used to treat mild to moderate pain, such as headaches, toothaches, muscle aches, and to reduce fever.	5%
Nervous System	Paracetamol Oral liq 250 mg per 5 ml	Pamol	Paracetamol is a medicine used to treat mild to moderate pain, such as headaches, toothaches, muscle aches, and to reduce fever.	5%
Nervous System	Sertraline Tab 50 mg	Setrona	Sertraline is a medicine used to treat various mental health conditions like major depressive disorder, obsessive-compulsive disorder (OCD), panic disorder, post-traumatic stress disorder (PTSD), social anxiety disorder (SAD), and premenstrual dysphoric disorder (PMDD).	5%
Nervous System	Sertraline Tab 100 mg	Setrona	Sertraline is a medicine used to treat various mental health conditions like major depressive disorder, obsessive-compulsive disorder (OCD), panic disorder, post-traumatic stress disorder (PTSD), social anxiety disorder (SAD), and premenstrual dysphoric disorder (PMDD).	5%
Nervous System	Varenicline Tab 0.5 mg x 11 and 1 mg x 42	Champix	Varenicline is a medicine used to help adults stop smoking.	5%
Nervous System	Varenicline Tab 1 mg	Champix	Varenicline is a medicine used to help adults stop smoking.	5%
Oncology Agents	Fulvestrant Inj 50 mg per ml, 5 ml	Faslodex	Fulvestrant is a chemotherapy medicine used to treat certain types of breast cancer.	5%
Oncology Agents	Mitomycin C Inj 5 mg vial	Accord (S29) Mitomycin (Sagent) (S29) Mitomycin (Fresenius Kabi) (S29)	Mitomycin is a chemotherapy medicine used to treat cancers such as upper gastrointestinal cancers (like esophageal cancer), anal cancer, breast cancer and superficial bladder tumours	5%
Oncology Agents	Mitomycin C Inj 20 mg vial	Teva Omegapharm (S29)	Mitomycin is a chemotherapy medicine used to treat cancers such as upper gastrointestinal cancers (like esophageal cancer), anal cancer, breast cancer and superficial bladder tumours	5%
Respiratory System and Allergies	Pirfenidone Tab 267 mg	Esbriet	Pirfenidone is used to treat idiopathic pulmonary fibrosis, a condition in which the lungs become scarred and stiff, making it hard to breathe.	5%
Respiratory System and Allergies	Pirfenidone Tab 801 mg	Esbriet	Pirfenidone is used to treat idiopathic pulmonary fibrosis, a condition in which the lungs become scarred and stiff, making it hard to breathe.	5%
Sensory Organs	Chloramphenicol Eye drops 0.5%	Chlorsig	Chloramphenicol eye drops are used to treat bacterial eye infections	5%

You can subscribe to get future information about our tender consultations and decisions.(external link)

To provide feedback

Send us an email: tenderconsult@pharmac.govt.nz or complete the online form by 4 pm Monday 16 June.

All feedback received before the closing date will be considered by Pharmac’s Board (or its delegate) prior to making a decision for all items included in this proposal.

Your feedback may be shared

When you give feedback on a consultation, your feedback becomes official information that Pharmac holds. Pharmac has legal responsibilities for how we manage this official information, under laws such as the Official Information Act and Privacy Act.

Pharmac may receive a request from people for official information, which could include your feedback. Legally, Pharmac must consider whether your feedback should be released.

We will consider your views when assessing whether the feedback has to be released. Tell us if there is anything about your feedback that you would prefer wasn’t released.

If your feedback is proposed for release, then Pharmac will contact you, unless there is a legal reason that we can't.

Note that Pharmac collects and holds your information in line with our Privacy Statement.