Consultation on the draft 2026/27: Invitation to Tender for public input

What we’re proposing

Pharmac runs the annual Invitation to Tender (“the annual tender”) process every year. It helps keep medicines affordable and make the best use of available funding. Savings from the tender are reinvested in the medicines budget, helping fund new treatments and improve access to funded medicines.

Pharmac | Te Pātaka Whaioranga is seeking feedback from consumers, whānau, patient support groups, consumer advocacy groups, the public, and other interested people on the draft 2026/27 Invitation to Tender (ITT).

We’re particularly interested in feedback on the following questions:

• Would changing the brand of any of the medicines be inappropriate, and why?
• 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 would be the key issues for Pharmac to consider if there was a change in funded brand for any of the medicines?
• What support or resources would you or other people using these medicines need if a brand change were to occur?
• Are there any features of the medicines that we should consider when evaluating them, for example pack sizes?
• For medicines tendered for “current access” and “widened access”, if funding restrictions (such as Special Authority criteria) were widened or removed, what potential benefits, issues, or consequences could occur?
• Are the proposed Additional Special Terms for somatropin injections appropriate?

We welcome any other feedback you may give. You can contact us if you wish to meet to discuss anything in this consultation.

We are also seeking feedback from healthcare professionals and medicines suppliers.

Healthcare professionals consultation

Suppliers’ consultation

Please share this consultation with others who you think might be interested. We want to hear feedback from a range of people.

What could change?

As a result of the annual tender, your medicine may:

• change from one brand to another
• change from multiple brands to a single brand
• not change brand
• become available to more people

We introduce any brand changes over time, usually five months. The new brand will then be in place and funded until at least 30 June 2030, subject to future tender decisions.

Understanding the impact of brand changes

People may start on, or move to, any new brand easily. However, we understand that people’s experiences when taking medicines can be different.

In addition to clinical advice, we use our consultation on the draft tender to find out if we might need more options for some medicines. We can use an “alternative brand allowance” (ABA) to support people who may experience, or are at greater risk of, negative outcomes from a brand change.

This consultation is your opportunity to provide feedback on whether we should allow for:

• people to move back to the old brand after bad side effects
• more time to change brands
• some patients to avoid switching altogether.

Consultation on possible brand changes through the Invitation to Tender

Pharmac may undertake further consultation on potential brand changes following the closure and assessment of bids for the 2026/27 ITT, where a brand change is being considered. This consultation is intended to help us better understand what a brand change could mean for people and how we can best support any potential change.

We will use the feedback we receive during this consultation and the future potential brand changes consultation to help us make informed decisions about whether to change the funded brands of these medicines and how any changes would be supported.

For more information on why and how this consultation is undertaken, please refer to the 2026 consultation on possible brand changes through the annual tender.

Is my medicine in the tender list?

Schedule two: Products to be tendered (draft, by therapeutic group) [XLSX, 34 KB] lists the medicines that we are proposing to include in this year’s tender. Medicines have been grouped according to the therapeutic group classification system used in the Pharmaceutical Schedule.

A therapeutic group is a category that includes medicines used to treat similar health conditions.  

Below is a list of these groups, and the corresponding page numbers. Medicines that may treat multiple health conditions only appear in one group.

Therapeutic group	Pages
Alimentary Tract and Metabolism (digestive issues, diabetes, laxatives, vitamins and minerals and metabolic disorders)	9 - 10
Blood and Blood Forming Organs (disorders that affect blood and its components)	10
Cardiovascular System (heart and blood vessel conditions)	10 - 12
Dermatologicals (skin conditions)	12 - 15
Genito-Urinary System (urinary and reproductive system issues)	15
Hormone Preparations (conditions requiring regulation or replacement of hormones)	15 - 17
Infections (bacterial and other infections)	17 - 19
Musculoskeletal System (conditions affecting bones, muscles and joints)	19 - 20
Nervous System (includes analgesics, anaesthetics, neurological conditions, mental health, and dementia)	20 - 22
Oncology and Immunosuppressants (cancer)	22 - 23
Respiratory (lung conditions and allergies)	23
Sensory Organs (eye and ear conditions)	24 - 25
Various	25

If you are unsure of the chemical name or therapeutic group for your brand of medicine, you can search the brand in the Pharmaceutical Schedule.

Search the Pharmaceutical Schedule(external link)

About the annual tender

How the annual tender words

The annual tender is a procurement process that Pharmac runs each year to secure the best possible health outcomes, prices and supply arrangements from the funding provided for many of the medicines used by New Zealanders.

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 supply of up to 95% of the total funded market.

The Funding Process – About the Annual Tender

Why does Pharmac run the tender?

The annual tender is key in helping Pharmac keep up with increasing demand for medicines we fund, and to fund new and innovative medicines. The annual tender is also a way for Pharmac to manage New Zealand’s spend on 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. All savings achieved through the annual tender are reinvested to provide more medicines for more people, either by introducing new treatments or expanding access to existing ones.

What is the result of the tender?

If we award a tender for a medicine to a pharmaceutical supplier, then that supplier’s brand becomes the main funded brand of that medicine. It would likely be the only brand of that medicine funded on the Pharmaceutical Schedule. We call this “Principal Supply Status”. For this tender round, Principal Supply Status would be in place until June 2030. 

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

If the awarded brand is already the only funded brand

There would be no noticeable change for people using the medicine, although the price of the medicine may change.

If a different brand is awarded the tender

People using this medicine 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 medicine is not currently funded

The new medicine would be funded and listed on the Pharmaceutical Schedule, with the brand awarded the tender becoming the main funded brand.

Which medicines are included in the tender?

Each year, Pharmac runs a tender that includes some of the medicines on the Pharmaceutical Schedule (the list of funded medicines). The list of medicines changes from year to year. Typically, medicines are tendered every three years.

Most medicines in the annual tender are already funded in New Zealand and are no longer under patent. A patent lets the inventor of a medicine own it exclusively for a set period – when that period ends, other suppliers can then make and sell that medicine.

Who does Pharmac talk to about the tender?

Before we run the tender each year, we ask for feedback from healthcare professionals, consumer groups, the pharmaceutical industry, and the public. This can tell us if:

• tendering is appropriate for each medicine
• there are any potential issues for us to think about when considering a change in brand for a particular medicine.

Pharmac’s Tender Clinical Advisory Committee gives us advice on every tender decision we make. The committee is made up of healthcare professionals, including doctors, nurse practitioners, pharmacists as well a consumer representative. As needed, we also seek more advice from specialists in particular fields, such as cancer or mental health.

The feedback and advice we get makes sure our decisions support New Zealanders to live longer, healthier lives.

More about the annual tender

Other benefits from the annual tender

The tender can result in savings for the medicines budget. We can use the savings to fund new medicines and make changes to the tendered medicines. For example:

• If the medicine is currently partially funded, it could become fully funded if the tender was awarded
• The medicine could be added to the all-at-once (‘stat’) dispensing list, which would mean that people could collect prescriptions all at once, rather than monthly.
• We might change or remove funding restrictions so more people can use it (for example, a Special Authority restriction, endorsement, or prescriber-type restriction). We might consult on this separately before making a decision.
• Some medicines or formulations may become funded for the first time through the tender

We are interested in your feedback on potential changes for the medicines we are tendering.

On the Pharmaceutical Schedule(external link) you can search for your medicine to see all dispensing and funding restrictions that apply.

More about the Pharmaceutical Schedule 

Additional Special Terms

We have included Additional Special Terms in the draft 2026/27 ITT contract [PDF, 1 MB] for somatropin injections, used to treat growth failure, growth hormone deficiency, and short bowel syndrome.

This would require any potential suppliers to offer education, training and support resources to patients and healthcare professionals, and related products required for the safe handling and use of the supplier’s somatropin product (such as associated devices, needles, needle clippers, sharps bins).

The full Additional Special Terms for somatropin can be found in the draft 2026/27 ITT contract. [PDF, 1 MB] Any feedback on these Additional Special Terms would be useful to inform the final contract.

Explanation of terms, symbols, and abbreviations

Some of the terms, abbreviations and symbols used in the draft tender list are quite specific.

Terms / abbreviations used in the draft tender list:

Term / abbreviation	Explanation
Tab	Tablet
Cap	Capsule
Liq	Liquid
Inj	Injection
Suppos	Suppository
Grans	Granules
OP	Original pack to be dispensed

Symbols used in the draft tender list:

Symbol	Explanation
Underlined	Tender items where there is currently a principal supply contract are underlined. The price and subsidy for these items are fixed until 30 June 2027 unless otherwise stated in the comments column, therefore a listing of a new brand could only occur after that date.
C	To be tendered for Principal Supply Status (community medicines).
H	To be tendered for Principal Supply Status (hospital medicines).
PCT	Pharmaceuticals for which Health New Zealand | Te Whatu Ora hospitals may claim a subsidy through Section B of the Pharmaceutical Schedule.
+	Pharmac has been advised of the existence of a patent.
*	There is no fully funded product available for this tender item (in relation to community supply).
@	Additional Stock Pharmaceuticals (ASP). The supplier of the successful tender bid would be required to hold additional stock.
#	A rebate currently exists. Rebates mean the price published in the Pharmaceutical Schedule may vary to the actual net price paid.

Key dates

Thursday 30 July 2026 – Consultation begins

Thursday 10 September 2026 – Consultation closes

September 2026 – Tender Clinical Advisory Committee meets

Late October/Early November 2026 – Final Invitation to Tender issued

December 2026 – Invitation to Tender closes

January 2027 – Earliest tender results announced

April 2027- Potential brand change consultation is released

May 2026 – Earliest listing of new brands

To provide feedback

Please provide feedback using one of the options below by Thursday 10 September 2026, midnight NZT.

All feedback received before the closing date will be considered by Pharmac’s Board or its delegate prior to finalising the 2026/27 Invitation to Tender.

Option 1 – Feedback form(external link)

Use the feedback form. Each feedback form is limited to five medicines. This helps us ensure that your feedback is accurately recorded and considered. You are welcome to submit multiple feedback forms. Each form takes approximately 5 – 10 minutes and will automatically be sent to us once you have completed it.

Option 2 – Feedback upload (Excel)

For people providing feedback on multiple medicines, you may find it easiest to:

1. Download the Excel template [XLSX, 35 KB]
2. Enter your feedback
3. Send us the Excel spreadsheet by uploading the template through the feedback form(external link)

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. Tell us if there is anything about your feedback that you would prefer wasn’t released and we will take that into consideration.