David Seymour Demands Pharmac Modernise to Improve Medicine Access

Associate Health Minister David Seymour has laid out a bold and detailed vision for reforming Pharmac, New Zealand’s medicine-buying agency, with an updated letter of expectations that urges the organisation to modernise, adopt technology, and increase transparency to better serve patients across the country.

Speaking at today’s press briefing, Minister Seymour emphasised that delivering timely and equitable access to medicines remains one of his top policy priorities. “For many New Zealanders, pharmaceutical funding decisions are a matter of life and death, or the difference between a life of suffering and one of freedom,” he said.

A Progress Report on Pharmac’s Reforms

The Minister acknowledged improvements made by Pharmac since his previous letter of expectations in 2024, describing recent progress as a “good start” while reiterating that “more work is needed to meet the demands of a modern healthcare system.”

Key accomplishments since last year include:

• Improved Public Engagement: Pharmac has enhanced its consultation processes and added a new consultation phase to its annual tender process, allowing greater public input into decision-making.

• Responsive Funding Criteria: The agency revised its criteria for funding oestradiol patches after receiving feedback from affected communities.

• Leadership Overhaul: Natalie McMurtry was appointed the incoming Chief Executive, signalling a leadership commitment to building a transparent and patient-centred organisation.

• Strengthened Consumer Voice: Pharmac held a Consumer Engagement Workshop and established a Consumer Working Group to help rebuild trust and partnership with patients.

• Expanded Access to Medicines: Using the Government’s $604 million budget boost over four years, Pharmac has funded 66 additional medicines, expected to benefit more than 200,000 New Zealanders.

Despite these advancements, Seymour stressed that Pharmac must not become complacent.

Expectations for 2025: Innovation, Efficiency, and Transparency

The new letter of expectations sets out seven clear directives for Pharmac:

1. Optimise Medicines Assessment and Procurement: Seymour expects the agency to streamline and modernise its assessment methods to accelerate decision-making and remove unnecessary bureaucratic hurdles.

2. Leverage Artificial Intelligence: In a significant shift, Pharmac has been urged to explore the use of AI to improve performance and efficiency. Seymour argued that smarter processes can lead to better, faster outcomes for patients.

3. Account for Societal Costs: The Minister called on Pharmac to include broader fiscal and social impacts in its funding decisions—moving beyond a narrow cost-benefit analysis to consider the consequences of not funding particular treatments.

4. Boost Stakeholder Engagement: Pharmac must actively seek input from clinicians, patients, and the pharmaceutical industry early and often in its processes.

5. Pursue New Funding Avenues: Seymour instructed the agency to explore partnerships, philanthropic support, or new public funding mechanisms to expand the pool of resources available for medicines and medical technologies.

6. Establish Clear Metrics: In the interest of accountability, Seymour directed Pharmac to publish measurable performance indicators and provide timely updates on funding decisions.

7. Prioritise Patient-Centred Engagement: Pharmac should ensure that patients are meaningfully involved throughout the assessment and decision-making process—not merely consulted after decisions are made.

A System Under Pressure

Pharmac has faced growing public scrutiny in recent years over slow funding decisions, limited medicine availability compared to other OECD countries, and perceived lack of transparency. Seymour’s directive is a response to those concerns and signals the Government’s intent to accelerate healthcare reform.

“We’re committed to ensuring the regulatory system for pharmaceuticals doesn’t delay or deny access to lifesaving treatment,” Seymour said. “Modernising Pharmac will help ensure that New Zealanders—regardless of where they live or what they earn—can access the medications they need to live fulfilling lives.”

Next Steps

The Ministry of Health and Pharmac are expected to collaborate on implementing these expectations, with progress reports likely to be made public. Seymour concluded by affirming his confidence in Pharmac’s leadership team and their ability to enact meaningful change.

“I look forward to continuing to work alongside Pharmac to deliver on the promise of a more responsive, efficient, and compassionate medicine funding system for all New Zealanders.”