2 May 2011

US drug firms step up attack on Pharmac

7:01 am on 2 May 2011

American pharmaceutical companies have stepped up their attack on the New Zealand drugs-buying agency Pharmac at a crucial stage in free trade talks including New Zealand and the United States.

The lobbying comes as the US prepares to outline its position on protections for the pharmaceutical industry in the TransPacific Partnership (TPP) trade talks.

The Pharmaceutical Research and Manufacturers of America says New Zealand does not buy as many drugs as other developed countries, meaning there are more deaths from treatable diseases.

Medicines New Zealand, which represents US pharmaceutical companies, says changes to Pharmac would save lives and money.

Auckland University law professor Jane Kelsey, who opposes the TPP, says Pharmac's effectiveness in getting value for money from its purchases is at risk if New Zealand caves into the American demands.

She says the big drug companies want more say in the process of Pharmac, and the removal of the cost-effectiveness criteria used in different ways in New Zealand and Australia.