28 July 2020: OIA response: indemnities sought from pharmaceutical companies for out-of-stock/supply issues

28 July 2020

Dear [name and contact details withheld]

REQUEST FOR INFORMATION

Thank you for your request dated 30 June 2020 under the Official Information Act 1982 (OIA) for information relating to PHARMAC’s “penalty clauses” (we have interpreted these as a reference to indemnities, but note that these are not “penalties”).  You asked:

  1. How many times has PHARMAC enforced the penalty clauses in its supply contracts with pharmaceutical companies for out-of-stock/supply issue situations each year since 2014? Please provide this information as a consolidated number for each year (not per company, so as to maintain commercial confidentiality), and provide it for the PHARMAC financial years 2014-2019.
  2. How many times has PHARMAC enforced the penalty clauses in its supply contracts with Medicines New Zealand member companies * for out-of-stock/supply issue situations each year since 2014?  Please provide this information as a consolidated number for each financial year (not per company, so as to maintain commercial confidentiality), and provide it for the PHARMAC financial years 2014-2019.

*MNZ members: Abbvie, Amgen, Astra Zeneca, Aspen,  Bayer , BMS , Boehringer Ingelheim,  Biogen, GSK, Janssen, Merck Group (Merck KgAA) , Merck Sharp & Dohme (MSD), Menarini, Mundipharma, Novartis, Pfizer, Roche, Sanofi, Seqirus, Takeda, Vifor 

The information you have requested is listed in the table below. 

Financial year - 1 July to 30 June

Number of indemnities sought from all pharmaceutical companies

Number of indemnities sought from Medicines NZ members

2014-15

8

2

2015-16

1

1

2016-17

3

0

2017-18

7

3

2018-19

1

1

2019-20

6

4

We trust that this information answers your queries. We are making our information more freely available, so we will now publish selected OIA responses (excluding personal details) on our website. Please get in touch with us if you have any questions about this.

Yours sincerely


Rachel Read
Manager, Policy and Government Services