Second consultation on possible brand changes through the annual tender July 2025

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.

This is the second round of additional consultation on the annual tender.

We appreciate the time and effort taken by everyone who provided feedback for the first round of additional consultation on the annual tender. Your insights have been invaluable and have helped us make informed annual tender decisions.

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)
• Dermatologicals (skin conditions)
• 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).

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 achieve 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, Wednesday 23 July. Feedback can either be emailed to tenderconsult@pharmac.govt.nz or by completing the online form.

What we are wanting to hear from you

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.

What is 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 below.

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 which could occur, 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.

Pharmac’s Funding Process – Generic Medicines

Medsafe’s Questions and answers 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

Therapeutic group	Medicine	Current funded brand(s)	What medicine is used for	ABA
Alimentary Tract and Metabolism	Calcitriol Cap 0.25 mcg	Calcitriol-AFT Calcitriol XL (S29)	Calcitriol is a medicine that is a form of vitamin D. It's used for people with severe kidney disease to lower their parathyroid hormone (PTH) levels.	5%
Alimentary Tract and Metabolism	Calcitriol Cap 0.5 mcg	Calcitriol-AFT Calcitriol XL (S29)	Calcitriol is a medicine that is a form of vitamin D. It's used for people with severe kidney disease to lower their parathyroid hormone (PTH) levels.	5%
Alimentary Tract and Metabolism	Calcium Gluconate Inj 10%	Hameln (S29)	Calcium gluconate is a medicine used to treat acute hypocalcaemia; hypocalcaemic tetany; hyperkalaemia with secondary cardiac toxicity; and hypermagnesaemia.	5%
Alimentary Tract and Metabolism	Iron (as Ferric Carboxymaltose) Inj 50 mg per ml, 10 ml vial	Ferinject	Iron (as ferric carboxymaltose) is an iron infusion used to treat iron-deficiency or anemia.	5%
Alimentary Tract and Metabolism	Pantoprazole Tab EC 20 mg	Panzop Relief	Pantoprazole is a medicine used to treat problems affecting the stomach and gut, such as indigestion, reflux and ulcers.	5%
Alimentary Tract and Metabolism	Pantoprazole Tab EC 40 mg	Panzop Relief	Pantoprazole is a medicine used to treat problems affecting the stomach and gut, such as indigestion, reflux and ulcers.	5%
Alimentary Tract and Metabolism	Thiamine Hydrochloride Tab 50 mg	Thiamine multichem	Thiamine hydrochloride is used for the treatment and prophylaxis of vitamin B1 deficiency states including beriberi and Wernicke’s encephalopathy.	5%
Anti-Infectives	Amphotericin B Liposomal inj 50 mg	AmBisome	Amphotericin B liposomal injection is a medicine used for the treatment and prophylaxis of serious systemic fungal infections.	5%
Anti-Infectives	Raltegravir potassium Tab 600 mg	Isentress HD	Raltegravir potassium is a medicine used for the treatment of HIV-1 infection in combination with other antiretroviral drugs.	5%
Blood and Blood Forming Organs	Plerixafor Inj 20 mg per ml	Mozobil	Plerixafor is a medicine used for the mobilisation of haematopoietic stem cells to peripheral blood for collection and subsequent autologous or allogenic transplantation in patients with lymphoma or multiple myeloma.	5%
Dermatologicals	Dimethicone Crm 5% (pack size greater than 100 g)	healthE Dimethicone 5%	Dimethicone crm 5% is used as a barrier to protect the skin against nappy rash, bedsores and urinary incontinence.	5%
Dermatologicals	Dimethicone Lotn – head lice suffocant	healthE Dimethicone 4% Lotion	Dimethicone lotn 4% is used to treat head lice.	5%
Dermatologicals	Ivermectin Tab 3 mg	Stromectol	Ivermectin is used to treat certain types of parasite infections, and for scabies when other treatments have not worked well.	5%
Dermatologicals	Liquid paraffin with white soft paraffin Liquid paraffin 50% with white soft paraffin 50% ointment (pack size 100 g or less)	White Soft Liquid Paraffin AFT	Liquid paraffin with white soft paraffin is used as an emollient to manage dry skin conditions like eczema and psoriasis.	5%
Dermatologicals	Liquid paraffin with white soft paraffin Liquid paraffin 50% with white soft paraffin 50% ointment (pack size greater than 100 g)	White Soft Liquid Paraffin AFT	Liquid paraffin with white soft paraffin is used as an emollient to manage dry skin conditions like eczema and psoriasis.	5%
Dermatologicals	Sunscreens, propriety SPF 50+ or greater	Marine Blue Lotion SPF 50+	Sunscreen is used to help protect your skin from the sun’s damaging ultraviolet (UV) light when outdoors.	5%
Musculoskeletal System	Teriparatide Inj 250 mcg per ml	Teriparatide - Teva	Teriparatide is a medicine used to treat osteoporosis (bone loss).	5%
Nervous System	Cyclizine Lactate Inj 50 mg per ml, 1 ml	Hameln	Cyclizine is used for nausea or vomiting caused by motion sickness, vertigo or Meniere's disease.	5%
Oncology Agents and Immunosuppressants	Bortezomib Inj 3.5 mg	DBL Bortezomib	Bortezomib is a medicine used to treat multiple myeloma	5%
Oncology Agents and Immunosuppressants	Carmustine Inj 100 mg vial	BiCNU	Carmustine is a medicine used to treat multiple myeloma, non-Hodgkin's lymphomas, and brain tumours	5%
Oncology Agents and Immunosuppressants	Nilotinib Cap 150 mg	Tasigna	Nilotinib is a medicine used to treat newly diagnosed chronic phase Philadelphia chromosome-positive chronic myeloid leukaemia, chronic or accelerated phase Philadelphia chromosome-positive chronic myeloid leukaemia resistant or intolerant to previous therapy	5%
Oncology Agents and Immunosuppressants	Nilotinib Cap 200 mg	Tasigna	Nilotinib is a medicine used to treat newly diagnosed chronic phase Philadelphia chromosome-positive chronic myeloid leukaemia, chronic or accelerated phase Philadelphia chromosome-positive chronic myeloid leukaemia resistant or intolerant to previous therapy	5%
Respiratory System and Allergies	Icatibant Inj 10 mg per ml, 3 ml prefilled syringe	Firazyr	Icatibant is a medicine used to relieve acute attacks of hereditary angioedema (HAE) in patients with C1-esterase inhibitor deficiency	5%
Respiratory System and Allergies	Loratadine Tab 10 mg	Lorafix	Loratadine is an antihistamine used to treat and prevent allergies such as hay fever.	5%
Respiratory System and Allergies	Xylometazoline  Nasal spray 0.1%	Any brand	Xylometazoline is used to help nasal congestion.	5%

If you would like to sign up to receive future information about our tender consultations and decisions, you can sign up here: pharmac.govt.nz/subscribe

To provide feedback

Send us an email: tenderconsult@pharmac.govt.nz or complete the online form by 4 pm, Wednesday 23 July.

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.