Vol 21 - November 2008
 
Panel discussion
 panel picture

 L-R
Prof Harvey White, Dr Pippa MacKay, Eamonn Smythe,
Ken Shirley and Matthew Brougham


  
A lively discussion around medicines policies involving four panellists was enjoyed by RMI members and guests in Auckland recently.  Chaired by Dr Pippa MacKay, the panel was made up of PHARMAC CEO, Matthew Brougham, NZMA representative, Professor Harvey White, Eamonn Smythe represented the Access to Medicines Coalition (ATM) along with the RMI’s CEO, Ken Shirley.
  Matthew Brougham outlined what he believed were the opportunities arising out of the Medicines Strategy which was released nearly a year ago.  He suggested that on the whole, the current system was reasonable, but that some evolutionary, rather than revolutionary, change was occurring.  One suggestion was that PHARMAC, in the future, might not wait for companies to apply for reimbursement, and that it might instigate the process, where a medicine might fill a requirement.
  As an example of the evolutionary change, he cited a review of the terms of reference for PHARMAC’s Consumer Advisory Committee and suggested that the coalition of patient groups, the ATM, could be encouraged to become involved.  He said an announcement could be expected after Christmas.
  There was considerable discussion about his statements that he was agnostic to the size of the medicines’ budget and his rejection of the notion of part subsidies.  Professor Harvey White disagreed with both statements and pointed out that partial subsidies allow for choice particularly where side effects from medicines are concerned.
  Dr White, who was representing the NZMA, New Zealand’s largest pan-medical association, was concerned that PHARMAC’s sole supply arrangements might not meet supply needs.  He also echoed earlier statements by the NZMA regarding the PHARMAC structure and processes stating that these were not sufficiently accountable and costs seem to dominate decision making.
  Eamonn Smythe outlined the ATM’s role as advocate for a wide range of patient groups seeking better health outcomes.  The ATM, he pointed out, represents hundreds of thousands of patients.
  Ken Shirley noted the disappointing outcome of the Medicines Strategy which represents a mere tweaking of the existing processes and structures.
  He also explained that the heralded $1.3billion of savings attributed to PHARMAC was the low fruit available to any organisation focussing on generic substitution with global prices tumbling over the past 15 years.  Other countries it seems have a better appreciation of the positive health benefits that result from investing in modern innovative medicines.


Election 2008
pre-election brochure  The RMI has published and distributed a pre-election brochure outlining the key issues together with responses by the political parties to questions seeking clarification of their policies. For a copy click here 
  The RMI Chairman, Dr Pippa MacKay said “Our four key policy requirements are:
 1. Increased investment in innovative medicines to better meet the health care needs of New Zealanders to a level that compares more favourably with other OECD nations.
  2. Improved clarity and transparency in both the processes that determine the budgeted money available for publicly funded medicines and in the setting of funding priorities.
  3. Increased protection of intellectual property rights in line with best practice among OECD nations.
  4. An enabling regulatory framework that provides efficient and cost-competitive medicines registration, updates the out-of-date Medicines Act and which addresses the issue of PHARMAC’s exemption from Part II of the Commerce Act.”
  Pippa MacKay said the RMI welcomes the National Party’s commitment to increased funding for innovative medicines as a positive signal.
  “However, the RMI, like the rest of New Zealand, will need to wait for the outcome of the likely coalition talks and formation of a new government, as well as a better understanding of the implications of the global financial crisis, before seeing any promises translated into action,” she said.


Some positive initiatives - improved PTAC transparency and accountability

  The new PTAC Terms of Reference released by PHARMAC last week are certainly an acknowledgement of the need for change says RMI CEO Ken Shirley.
  The announced changes provide for:
  - increased publication of information
  - increased clarity of the role, scope and functions of PTAC; and
  - increased clarity of the relationship between PHARMAC and PTAC.
  While these proposed changes are steps in the right direction they will not achieve the independence of PTAC and its separation from PHARMAC control which is considered necessary by the RMI and other key stakeholders.


 




This newsletter is published on behalf of the
Researched Medicines Industry Association of New Zealand. The views and opinions expressed in this publication are not necessarily those of the RMI.


For further information:

Researched Medicines Industry Association
PO Box 10447 Wellington
Phone 04 499 4277
http://www.rmianz.co.nz


Stop Press   
  
  National's pledge to boost funding for subsidised medicines by an extra $180m over three years is a significant advancement.  
  Many innovative medicines that have received a positive recommendation by PTAC but to date have not been funded should now become available to New Zealanders.  While this policy represents a signficiant improvement it will still leave New Zealand well behind most other OECD countries in access to innovative medicines.

Low and slow confirmed 
  A recently published international analysis by Canadian researchers Wyatt Health Management places New Zealand in bottom place for public reimbursement of pharmaceuticals. 
 
The research compares the availability of 36 innovative medicines in a wide range of OECD markets.  The average positive reimbursement rate among the 14 EU countries was 91%, Canada had 61%, Australia 58% with New Zealand on 22%.
 
“This is, yet again, confirmation that New Zealanders are denied access to a wide range of innovative medicines that people in other countries are prescribed as a matter of course,” Ken Shirley said.
 
“Not only are New Zealanders restricted to a narrow portfolio of mostly older generic medicines, but they often have to wait till patents on the innovative medicine expire and the cheap generic becomes available.  Only then do New Zealanders get access….
 
Source:  The 2007 Wyatt Health International Comparison.  Access to Innovative Pharmaceuticals; How do countries compare?  Wyatt Management Consulting Inc., Oakville, Ontario, Canada.  May 2008



Costs of developing new and innovative medicines soars   
  
 
“Getting drugs to the market has never been more expensive.  The price tag for developing a single medication can now top US $1 billion, compared with less than $300 million 15 years ago,” Time Magazine reported.
 
It pointed out that the rise partially due to the need to produce bigger and bolder breakthroughs as portfolios mature and patents lapse.
  Source :
Time NZ 13 October 2008


 

 

  

 



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