Decision to fully fund econazole nitrate cream

We are pleased to announce a decision to fully fund econazole nitrate 1% cream, as a result of Pharmac’s 2023/24 Annual Tender. This means:

• The currently listed Pevaryl brand of econazole nitrate 1% cream will be fully funded from 1 January 2025.
• Pevaryl (supplied by Inova) will be the Principal Supply brand of econazole nitrate 1% cream from 1 June 2025 until 30 June 2027.

There are no changes to the funding of econazole nitrate 1% foaming solution as part of this decision. This means that the part charge on the foaming solution will remain unchanged. However, this does not prevent Pharmac from considering removing the part charge for the foaming solution in the future.

The Government provided additional funding to Pharmac in June 2024 to fund new medicines and widen access to medicines that are already funded. The funding increase covers medicines for both cancer and other health conditions. This decision is one of many that we’re working on to put our budget increase into action.

Questions and answers about the funding increase

Who we think will be most interested

• People who get fungal skin infections, their whānau, and caregivers.
• Healthcare professionals who care for people with fungal skin infections.
• Dermatologists, primary care practitioners (including general practitioners, pharmacist prescribers, and nurse practitioners).
• Health New Zealand | Te Whatu Ora hospitals and other organisations who deliver services and support for people with fungal skin infections.
• Pharmacies and wholesalers.
• Pharmaceutical suppliers.

About econazole nitrate 1% cream (Pevaryl)

Econazole nitrate cream (Pevaryl) is currently funded in the community (Section B) with a part charge, meaning that people have to pay some of the cost of the medicine.

Econazole nitrate cream is currently funded in hospitals (Part II of Section H) and listed as ‘any brand’, meaning that any brand can be sourced. It is funded ‘for continuation only’, meaning that people can only receive it in hospital if they have previously been prescribed it.

Econazole nitrate cream is used to treat fungal skin infections. It is applied directly to the affected area and kills the fungi causing the infection. Pevaryl cream is usually used for fungal infections affecting a small area, such as on the toes, in the groin, or on other parts of the body.

About Pevaryl on Healthify(external link)

What we’re doing

From 1 January 2025, econazole nitrate 1% cream will be fully funded in the community. Currently people have to pay some of the cost of the medicine (a part charge). The funded brand will still be Pevaryl, however the part charge will be removed.

From 1 January 2025, econazole nitrate 1% cream (Pevaryl) will be funded in hospitals and the restriction ‘for continuation only’ will be removed. This means people will be able to receive it in hospital, even if they have not been prescribed it before.

In the first year of funding, we expect about 780 people would receive econazole nitrate 1% cream. We expect that by year five, around 820 people would receive this treatment each year.

2023/24 Annual Tender

Econazole nitrate 1% cream was included in the 2023/24 Annual Tender. In July 2023, we sought feedback on:

• including econazole nitrate 1% cream in the 2023/24 Annual Tender and whether a brand change would be clinically appropriate.
• the possibility of fully funding econazole nitrate 1% cream.

We did not receive any feedback about econazole nitrate 1% cream.

Details about this decision

Pevaryl (Inova) will be listed in Section B and Part II of Section H of the Pharmaceutical Schedule from 1 January 2025, as follows:

The following changes will apply:

• The Pevaryl brand of econazole nitrate 1% cream will be fully funded from 1 January 2025 without a part charge.
• Pevaryl will be the Principal Supply brand of econazole nitrate 1% cream from 1 June 2025 until 30 June 2027. This means it will be the main funded brand of econazole nitrate 1% cream in the community and hospitals.

There will be no changes to the funding restrictions for econazole nitrate 1% cream in the community. This means it will be funded for any clinically appropriate use. Econazole nitrate 1% cream will remain listed in Section B with the following funding restrictions:

• Only on a prescription
• Not in combination (this means it cannot be prescribed alongside the foaming solution).

Econazole nitrate cream is currently funded ‘for continuation only’ in Health NZ hospitals. We will be removing this restriction from 1 January 2025, which will allow people to receive econazole nitrate cream in hospital regardless of if they have been prescribed it before.

There are no changes to the funding of econazole nitrate 1% foaming solution as part of this decision. This means that the part charge on this product will remain unchanged. However, this does not prevent Pharmac from considering removing the part charge for the foaming solution in the future.

If you have any questions about this decision, you can email us at enquiry@pharmac.govt.nz; or call our toll-free number (9 am to 5 pm, Monday to Friday) on 0800 660 050.