Removal of Xpharm restrictions
Thank you for your request under the Official Information Act 1982 (the Act), which was partially transferred to Pharmac by Health New Zealand on 13 June 2025. You requested:
The total cost incurred to lift the Xpharm restriction including all processes, resources and meetings
Please find in the table below the Budget Impact Summary for removing Xpharm restrictions for some childhood vaccines to the Combined Pharmaceutical Budget (CPB).
Any other costs associated with this proposal were met from within baseline operational funding.
Budget Impact Summary
|
Market data |
Year ending |
30 Jun 2024 |
30 Jun 2025 |
30 Jun 2026 |
30 June 2027 |
30 June 2028 |
|
Estimated number of people affected by proposal |
1,455 |
6,402 |
7,170 |
7,170 |
7,170 |
|
|
Estimated number of Māori or Pacific people affected by proposal |
611 |
2,689 |
3,012 |
3,012 |
3,012 |
|
|
Reimbursed Pharmaceutical Expenditure |
Expenditure (gross) |
$6,520,000 |
$20,410,000 |
$20,590,000 |
$20,590,000 |
$20,590,000 |
|
Expenditure (net) |
$1,300,000 |
$1,860,000 |
$2,210,000 |
$2,210,000 |
$2,210,000 |
|
|
Net present value (NPV, net) |
$9,180,000 |
|
|
|
|
|
|
Hospital Pharmaceutical Expenditure (bulk funded) |
Expenditure (gross) |
$0 |
$0 |
$0 |
$0 |
$0 |
|
Expenditure (net) |
$0 |
$0 |
$0 |
$0 |
$0 |
|
|
NPV (net) |
$0 |
|
|
|
|
|
|
TOTAL - Combined Pharmaceutical Budget |
Net cost to CPB |
$1,300,000 |
$1,860,000 |
$2,210,000 |
$2,210,000 |
$2,210,000 |
|
NPV (net) |
$9,180,000 |
|
|
|
|
|
|
Other (Non-Pharmaceutical) Health Sector Costs |
Net distribution costs |
$0 |
$0 |
$0 |
$0 |
$0 |
|
Other (non-pharmaceutical) Health Sector costs |
$0 |
$0 |
$0 |
$0 |
$0 |
|
|
Total net other Health Sector costs |
$0 |
$0 |
$0 |
$0 |
$0 |
|
|
|
NPV |
$0 |
|
|
|
|
|
Total - Pharmaceutical and Health Sector Costs |
Total cost (savings) to Health Sector including net CPB cost |
$1,300,000 |
$1,860,000 |
$2,210,000 |
$2,210,000 |
$2,210,000 |
|
NPV |
$9,180,000 |
|
|
|
|
|
Notes:
- Expenditure (gross) = forecast of spending at the proposed price and subsidy.
- Expenditure (net) = gross expenditure less rebates
- Other (non-pharmaceutical) health sector costs = any additional costs/savings the pharmaceutical is expected to generate in other health budgets
- Net cost to CPB/Health Sector = forecast of change in spending compared with status quo.
- All pharmaceutical costs are ex-manufacturer, excluding GST
- NPV is calculated over 5 years using an annual discount rate of 8%.