Consultation on the draft 2025/26: Invitation to tender for health care professionals

Overview

Pharmac | Te Pātaka Whaioranga is seeking feedback from healthcare professionals, medical groups, hospital pharmacies, and other interested parties on the draft 2025/26 Invitation to Tender.

We are seeking feedback on the draft 2025/26 Invitation to Tender. The list of medicines proposed for inclusion in the 2025/26 Invitation to Tender is still under development and may change before the final 2025/26 ITT is issued. In particular, we are seeking:

We’re particularly interested in feedback on the following questions:

• whether a brand change for any of the medicines included in the draft tender list would not be appropriate, and why?
• whether Pharmac should delay or avoid a brand change for any of these medicines and, if so, why?
• are there any features of the medicines that we should consider when evaluating them?
• what are the potential benefits, issues, or consequences of dispensing 3 months supply of any of these medicines at once?
• are there potential benefits, issues, or consequences if we removed any funding restrictions from the medicine (such as Special Authority criteria)?
• which medicines, indications (uses), or population groups might need an alternative brand if a brand change were to occur and why?
• are the proposed Additional Special Terms for intra-uterine devices [non-hormonal] (IUDs) appropriate?
• For intra-uterine devices [non-hormonal] (IUDs), we are considering making a MDR certification a mandatory requirement, rather than a preference. What are the potential issues, benefits or consequences of this change?

We welcome any other feedback you may wish to provide. Please contact us if you wish to discuss anything in this consultation.

We are also seeking feedback from the industry and people who take medicines.

Industry consultation

• Consumer consultation(external link)

Please share this consultation with others who you think might be interested. We want to hear feedback from a range of people.

About the tender

Pharmac’s annual tender is used to contract for supply of medicines. Most of these medicines are already funded in New Zealand and are no longer under patent.

The tender helps to secure the ongoing supply of medicines and generate savings. These savings can be used to fund new medicines. Each year, some of the medicines on the Pharmaceutical Schedule (the list of funded medicines) are included in the annual tender. Although the tender is run annually, the list of medicines included in it changes from year to year. Typically, each medicine is tendered every three years.

Before we run the tender each year, we seek feedback from healthcare professionals, consumer groups, the pharmaceutical industry and the public. This can tell us if:

• tendering is appropriate for each medicine
• there are any potential issues when considering a change in brand for a particular medicine

We get expert advice from Pharmac’s Tender Clinical Advisory Committee on every tender decision we make. The committee is made up of healthcare professionals, including doctors, nurse practitioners, and pharmacists. We’ll also seek additional advice from specialists in particular fields, such as cancer or mental health, as needed.

The feedback and advice we get makes sure our decision supports New Zealanders to live longer, healthier lives.

New round of consultation

For last year’s invitation to tender, Pharmac introduced an extra consultation step. This was intended to help us better understand what a brand change could mean to people and how we could best support any change.

We did two consultations:

28 May 2025 | Consultation on possible brand changes through the annual tender

8 July 2025 | Second consultation on possible brand changes through the annual tender July 2025

This additional consultation step will be incorporated into the 2025/26 annual Invitation to Tender and for future tenders.

What the tender means

If we award a tender for a medicine to a pharmaceutical supplier, then that supplier’s brand becomes the principal funded brand of that medicine. It would likely be the only brand of that medicine funded on the Pharmaceutical Schedule (Principal Supply Status). For this tender round, Principal Supply Status would be in place until 30 June 2029. Principal Supply Status means that if a supplier is selected, they become the main supplier of that medicine in New Zealand with a guaranteed supply of at least 95% of the total funded market.

There may be no change

If the brand awarded the tender was already the only funded brand, there would be no noticeable difference for most people, although the price that Pharmac pays may change.

Many funded brands may change to only one funded brand

If that brand was one of multiple funded brands, we would transition from the various funded brands to the brand that has been awarded the tender (and therefore would have Principal Supply Status). The other brands would be removed from the Pharmaceutical Schedule. Usually, this transition lasts for five months.

A new funded brand may replace an existing one

If that brand was not already funded, we would transition from the old brand to the new one over time. The new brand is listed on the Pharmaceutical Schedule, and there is then a period of time when both the old and new brands would be available and funded. The old brand is then removed from the Pharmaceutical Schedule. Usually, this transition lasts for five months. We notify of any upcoming changes at least one month before any changes occur.

Access to other brands if a tender is awarded to a new brand

Most people will start on, or move to, the new brand easily. However, we understand that people’s experiences when taking medicines may be different. We use an “alternative brand allowance” (ABA) to support people who may experience, or are at heightened risk of, adverse outcomes from a brand change. This may mean:

• moving back to the old brand after adverse side effects
• having a longer period to change brands
• allowing some people to avoid switching altogether.

The structure of the tender gives Pharmac the flexibility to fund alternative brands in different ways. For example:

• in hospitals, we would use the alternative brand allowance provisions in the Schedule. This lets hospitals purchase alternative brands up to a certain percent of volume, typically 5 percent.
• in the community, alternative brands could be funded through listing (or maintaining the listing of) other brands under Special Authority criteria, or
• managing case-by case approvals through our Exceptional Circumstances framework.

While Pharmac can fund alternative brands, continued supply of a particular alternative brand cannot always be guaranteed. It is helpful to understand what medicines might need access to alternative brands before we run the tender.

We are keen to understand:

• which medicines, indications, or population groups might need funding for an alternative brand, and if so, why?
• are there any particular features of the medicines that we should be considering when evaluating potential medicines?

Other potential changes

The tender can result in substantial price reductions, and we can use the savings to fund new medicines. We also use the savings to fund changes to the tendered medicines. For example:

• We might change or remove funding restrictions so more people can use it (for example, a Special Authority restriction, endorsement, or prescriber-type restriction). We might consult on this separately before making a decision.
• If the medicine is currently partially funded, it could become fully funded if the tender were awarded.
• We might change the amount of medicine that could be dispensed at a time – for example we might let people collect three months’ supply of medicine at a time instead of one month.
• Some medicines or formulations may become funded for the first time through the tender.

We are interested in your feedback on potential changes for the medicines we are tendering. You can see the Pharmaceutical Schedule for all dispensing and funding restrictions

Pharmaceutical Schedule

Additional Special Terms

We have included Additional Special Terms in the draft 2025/26 Invitation to Tender contract for intra-uterine devices [Non-hormonal] (IUDs). This clause would require that potential suppliers offer education, training, and support resources to safely use the supplier’s IUD product. This could include a description of the inserter and IUD materials and insertion instructions. 

Any feedback on these Additional Special Terms will help inform the final contract. 

Intra-uterine device (Non-hormonal)

You shall provide the following information when submitting a Tender Bid for the Pharmaceutical intra-uterine device [Non-hormonal] (IUD Tender Item):

• the size of the IUD Tender Item, including length and width measurements as well as the diameter of the inserter;
• a description of the material the inserter is made of;
• the duration of the therapeutic effect of the IUD Tender Item; and
• the metals which are contained in the IUD Tender Item.

You shall provide the following Resources at no cost for the IUD Tender Item, for the provision of education, training and support to healthcare professionals in respect of the use of the IUD Tender Item. 

For the purposes of this clause “Resources” shall include but not be limited to the:

• provision of training materials (DVDs, pamphlets, leaflets, brochures) to healthcare professionals;
• provision of an information sheet explaining the differences between the current brand of intra-uterine device and your IUD Tender Item; and
• provision of presentations and/or demonstrations on the use of your IUD Tender Item to patients and/or healthcare professionals.

The tender list

See Schedule Two: Products to be tendered (draft, by therapeutic group) for the list of medicines that we are proposing to include in this year’s tender. Medicines have been grouped according to the therapeutic group classification system used in the Pharmaceutical Schedule.

Below is a list of these groups, and the corresponding page numbers in the PDF version of this consultation [PDF, 230 KB]. Medicines with multiple indications only appear in one group.

Therapeutic group	Pages
Alimentary Tract and Metabolism	11 - 12
Blood and Blood Forming Organs	12
Cardiovascular System	13 - 16
Dermatologicals	16 - 18
Genito-Urinary System	18
Hormone Preparations	18 - 19
Infections	19 - 21
Musculoskeletal System	21
Nervous System	22 - 25
Oncology and Immunosuppressants	25 - 26
Respiratory	26
Sensory Organs	26

This year’s draft Invitation to Tender includes 61 tender items that have not previously been included in the tender and/or are not currently listed on the Pharmaceutical Schedule. These tender items are as follows:

Information provided for each medicine

For each medicine (as defined by chemical name, form, and strength), we have provided where applicable:

• the current subsidy paid per unit (e.g. capsule, tablet, injection) as of 1 July 2025. These values are ex-manufacturer excluding GST
• the number of units funded in the community per year in the year ending 30 June 2025 These may be partially funded or full funded
• an estimate of the annual community-market value based on the current subsidy paid per unit. This is estimated by multiplying the volume of units used in the year ending 30 June 2025 by the current listed unit subsidy as of 1 July 2025
• comments specifically relating to the tender item and/or its current listing on the Pharmaceutical Schedule
• please note that these volumes and figures are approximate and indicative only. Pharmac makes no representation as to the accuracy of these volumes and figures or the level of sales or likely sales of any tender item.

Explanation of terms, symbols, and abbreviations

 “Tab” means tablet, “cap” means capsule, “liq” means liquid, “inj” means injection, “suppos” means suppository, “grans” mean granules and “OP” means original pack to be dispensed.

Symbols used in the draft tender list:

Symbol	Explanation
Underlined	Tender items where there is currently a principal supply contract are underlined. The price and subsidy for these items are fixed until 30 June 2025 unless otherwise stated in the comments column, therefore a listing of a new brand could only occur after that date.
C	To be tendered for Principal Supply Status (community medicines).
H	To be tendered for Principal Supply Status (hospital medicines).
PCT	Pharmaceuticals Health New Zealand | Te Whatu Ora hospitals may claim a subsidy through Section B of the Pharmaceutical Schedule.
+	Pharmac has been advised of the existence of a patent.
*	There is no fully funded medicine available for this tender item (in relation to community supply).
@	Additional Stock Pharmaceuticals (ASP). The supplier of the successful tender bid would be required to hold additional stock.
#	A rebate currently exists.

Key dates

30 July 2025 – Consultation begins

10 September 2025 – Consultation closes

September 2025 –Tender Clinical Advisory Committee meets

Late October/Early November 2025 – Final Invitation to Tender issued

December 2025 – Invitation to Tender closes

January 2026 – Earliest tender results announced

April 2026 – Earliest listing of new brands

Providing feedback

Feedback should be provided to the tender analysts via

our online form or 

tenderconsult@pharmac.govt.nz

All feedback received before the closing date will be considered by Pharmac’s Board or its delegate before finalising the 2025/26 Invitation to Tender.

Your feedback may be shared

When you give feedback on a consultation, your feedback becomes official information that Pharmac holds. Pharmac has legal responsibilities for how we manage this official information, under laws such as the Official Information Act and Privacy Act.

Pharmac may receive a request from people for official information, which could include your feedback. Legally, Pharmac must consider whether your feedback should be released.

We will consider your views when assessing whether the feedback has to be released. Tell us if there is anything about your feedback that you would prefer wasn’t released.

If your feedback is proposed for release, then Pharmac will contact you, unless there is a legal reason that we can't.

Note that Pharmac collects and holds your information in line with our Privacy Statement.