The Pharmac / supplier relationship

Key things to keep in mind after you’ve entered into an Agreement for supply with Pharmac:

Ensure you’re aware of the terms of your contract

Please read through the agreement and become familiar with the Terms of the Agreement. If you have any questions, please contact your Contract Manager.

Generally, agreements include separate sections for the standard terms and for the terms specific to the Agreement.

Continuity of supply is our priority

We understand that sometimes supply issues happen. It is important however that we’re advised as soon as possible. This allows us to help you resolve the issue and develop plans to reduce the impact on patients.

Supplier performance in responding to supply issues, including timely communications and working to a resolution that mitigates the impact on patients, may be a factor that Pharmac considers as part of its procurement process for future Agreements.

Contract Managers should be your first point of contact for product changes

Pharmac is responsible for making decisions on what is listed in the Pharmaceutical Schedule, therefore we need to be made aware of any changes to the listed products.

Chances are that patients, pharmacists, distribution chains, hospital staff or any number of interested parties will reach out to us with questions – it’s helpful for everyone if we’re given a heads-up first. 

Before you first list a pharmaceutical on the Pharmaceutical Schedule 

Pharmaceuticals are listed on the Pharmaceutical Schedule with unique identifiers for brands, presentations, and pack sizes.  The Pharmaceutical Schedule uses Pharmacodes and NZMT CTPP codes.  You are required to apply for both a Pharmacode and NZMT CTPP codes for all of your products.  

Pharmacodes are issued by the Pharmacy Guild of New Zealand (PGNZ). There is a fee applied for each Pharmacode by PGNZ.  At least one month before your listing due please do the following:

• Set up an account with PGNZ (so you can apply for Pharmacodes)
• Apply for a Pharmacode for each of the products and pack sizes you have a listing Agreement for.  

PGNZ will provide you with NZMT CTPP codes are issued by New Zealand Universal List of Medicines (NZULM). These codes are free.  

As soon as you have both codes for each brand/presentation/pack, complete and submit a Notification of Product Change (NOPC) form [PDF, 273 KB]. More information on the NOPC process and timings.
 

In order to list a hospital medical device on the Pharmaceutical Schedule, you will need to provide a supplier code unique for each device and where available, a GTIN code. We use GTIN codes as part of our partnership with Health New Zealand’s Health System Catalogue (HSC) team and GS1. We encourage you to provide information to 
the HSC and in the future, GTIN codes will be required to list medical devices on the Pharmaceutical Schedule.

Notify us with significant product changes and changes to regulatory status.

Depending on what the change is, we may need to seek advice from industry experts on the impact. It’s important that we’re given enough notice to do this and consider whether additional communications are required. 

If regulatory activity may impact supply continuity, please let us know. While we expect you to maintain marketing approvals (and with medical device contracts it is an obligation to do so), we may seek feedback from Medsafe on pathways that mitigate patient impact. Note again that we operate independently of Medsafe and engage with them on an advisory basis only.

Keep agreements and the Schedule up to date.

We will action any necessary amendments to our Agreement and align the Pharmaceutical Schedule with the changes (such as list new Pharmacodes for medicines and product codes for devices). It’s important that the Schedule reflects the codes of the available product. The market cannot access funding for any medicine which does not have a Pharmacode listed.

Communicate any discontinuations of supply – immediately.

Medicine and Medical Device continuity for patients is critical. We understand that events happen which need to be managed - including discontinuations. We would expect that the notice period (lead-time) would be sufficient to enable alternative products (clinical suitability) for the ongoing supply be arranged so that patients can continue receiving treatment without interruption.

A discontinuation of a Pharmaceutical or Medical Device needs to be carefully managed and significant time must be dedicated to factors including:

• For medicines, enabling patients to be able to safely transfer to alternative treatments.
• For medical devices, enabling training and clinical assessments that may be needed to transition products.

Keep us informed when transferring the supply of a medicine or medical device from one supplier to another.

Get in touch with us. The rights and obligation of supply sit with the contracted party; however, we understand that changes at a global level, changes to licences for distribution, or other factors, mean that transferring an Agreement from one supplier to another may be required. Pharmac reserves its rights in this regard; however, we have a process in place to help manage this with you.

Pay rebates on time

If your agreement includes rebate provisions, then please get familiar with these.  If you have any questions, please contact your Contract Manager. Invoicing, data receipt and credit control is managed by Pharmac’s Finance team in collaboration with Contract Managers. Medical device rebates are paid directly to the hospitals.

Report to us – Both regularly and as needed

Our Agreements outline when you need to notify or report to us. Examples include:

• If stockholdings go below a certain level
• Sales data, including for rebates

Additionally, medical device Agreements have quarterly reporting requirements including sales data and KPI.