Agreement with ConvaTec (New Zealand) Limited for the supply of wound care products

11 March 2015

Hospital devices Decision

PHARMAC is pleased to announce the approval of an agreement with ConvaTec (New Zealand) Limited (“ConvaTec”) for the supply of wound care products.

This was the subject of a consultation letter dated 5 February 2015.

In summary, the effect of the decision is that:

A range of wound care products supplied by ConvaTec will be listed in Section H, Part III, (‘Optional Pharmaceuticals’) of the Pharmaceutical Schedule from 1 April 2015.
DHB hospitals can purchase these items either directly from ConvaTec or through a designated third party logistics provider under the national agreement.

Agreement with ConvaTec (New Zealand) Limited for the supply of wound care products [PDF, 66 KB]

Details of the decision

Following a Registration of Interest issued in August 2013, PHARMAC has entered into an agreement with ConvaTec for the supply of a selection of wound care products to be listed on the Pharmaceutical Schedule. This means that DHB hospitals may purchase these products under the national agreement at the new pricing.

che proposal is cost neutral to the pricing negotiated by Health Alliance on behalf of the DHBs some time ago.

The agreement is not exclusive. DHBs can continue to purchase other brands of wound care products at their discretion.

Educational services will be provided by ConvaTec to DHB personnel on appropriate use of its wound care products and will be arranged in a format and times as agreed with individual DHBs.

Feedback received

PHARMAC appreciates all of the feedback that it has received and acknowledges the time people took to respond. All consultation responses received by 20 February 2015 were considered in their entirety in making a decision on the proposed changes. Most responses were supportive of the proposal. The following issues were raised in relation to specific aspects of the proposal:

Theme	Comment
It was noted that the agreement with ConvaTec did not require a change to individual DHB processes in relation to internal product evaluation and procurement processes. It was noted that the agreement with ConvaTec allowed sufficient flexibility to purchase other brands of products and from other suppliers as appropriate.	As stated in this notification, this agreement is not exclusive. DHBs can continue to purchase other brands of wound care products at their discretion, and can evaluate new products as they would normally.
It was noted the Niltac and Silesse range of products was useful in patients with epidermolysis bullosa but there was concern that supply had been discontinued in New Zealand	Distribution rights for the Niltac and Silesse range of products are now owned by ConvaTec. We would expect the Niltac and Silesse range of products to be available for supply to DHBs at the listed price from 1 April 2015.

Theme

Comment

It was noted that the agreement with ConvaTec did not require a change to individual DHB processes in relation to internal product evaluation and procurement processes.

It was noted that the agreement with ConvaTec allowed sufficient flexibility to purchase other brands of products and from other suppliers as appropriate.

As stated in this notification, this agreement is not exclusive. DHBs can continue to purchase other brands of wound care products at their discretion, and can evaluate new products as they would normally.

It was noted the Niltac and Silesse range of products was useful in patients with epidermolysis bullosa but there was concern that supply had been discontinued in New Zealand

Distribution rights for the Niltac and Silesse range of products are now owned by ConvaTec. We would expect the Niltac and Silesse range of products to be available for supply to DHBs at the listed price from 1 April 2015.

More information

If you have any questions about this decision you can email PHARMAC at enquiry@pharmac.govt.nz or call our toll free number (9 am to 5 pm, Monday to Friday) on 0800 66 00 50.