Removal of Xpharm restrictions

OIA response

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:

  1. Expenditure (gross) = forecast of spending at the proposed price and subsidy.
  2. Expenditure (net) = gross expenditure less rebates
  3. Other (non-pharmaceutical) health sector costs = any additional costs/savings the pharmaceutical is expected to generate in other health budgets
  4. Net cost to CPB/Health Sector = forecast of change in spending compared with status quo.
  5. All pharmaceutical costs are ex-manufacturer, excluding GST
  6. NPV is calculated over 5 years using an annual discount rate of 8%.