Pharmaceutical Management Agency (PHARMAC)

What Pharmaceutical Management Agency (PHARMAC) does

PHARMAC (Pharmaceutical Management Agency), also known as Te Pātaka Whaioranga in Māori, is a statutory Crown entity of the New Zealand Government established in 1993 under the New Zealand Public Health and Disability Act 2000 and accountable to the Minister of Health. It is the sole national agency responsible for deciding which medicines, vaccines, and related products are publicly funded in New Zealand, operating within a fixed government budget allocated via the Ministry of Health. Over 4 million New Zealanders access funded medicines every year through PHARMAC's Pharmaceutical Schedule.

The core product is the Pharmaceutical Schedule (Te Rārangi Rongoā), which includes the Community Schedule for community pharmacy dispensing, the Hospital Medicines List (HML) for Te Whatu Ora hospital use, the Practitioners Supply Order (PSO) system, and the Ambulance Medicines List (Section E). Supporting digital platforms include the Application Tracker for funding application status, PharmConnect for online applications, and various application services for Special Authority and Named Patient Pharmaceutical Assessment (NPPA) approvals. PHARMAC also operates the Hospital Medical Devices Programme through national contracting, and specialty programmes including CGMs and Insulin Pumps (effective 1 October 2024), the ADHD Treatments Management Programme, and the Timely Assessment Programme (TAP). Extemporaneously Compounded Products and galenicals are funded for patients requiring specially compounded medicines.

PHARMAC does not generate revenue; instead, it allocates a fixed government healthcare budget to maximize health outcomes for New Zealanders, negotiating medicine prices with suppliers on behalf of the government and managing supply continuity. Its key institutional partners include Health New Zealand (Te Whatu Ora), the Ministry of Health (Manatū Hauora), Medsafe, and the Pharmaceutical Society of New Zealand. Distribution of funded medicines is channeled through community pharmacies, public hospitals, ambulance services, and authorized prescribers, with no commercial sales motion.

Name

Pharmaceutical Management Agency (PHARMAC)

Legal name

Pharmaceutical Management Agency (PHARMAC)

Website

https://pharmac.govt.nz

Company type

Private

Founded year

1993

Operating status

Operating

Headcount range

101–250 employees

Short description

PHARMAC is a New Zealand government Crown entity that decides which medicines, vaccines, and medical devices are publicly funded, managing the national Pharmaceutical Schedule and serving over 4 million New Zealanders under a fixed government budget.

Ownership category

akta.pro rank

Product category

Pharmaceutical Benefits Management

NAICS

Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds (524292), Administration of Public Health Programs (92312)

SIC

Hospital & Medical Service Plans (6324)

akta.pro primary industry

Pharmacy Benefit Management (PBM) & Pharmacy Network Administration (HLAFALAI)

akta.pro secondary industries

Specialty Pharmacy & Complex Therapy Management Platforms (HLACAKAG), Hospital & Health-System Pharmacies (Inpatient/Outpatient) (HLAFALAB)

Keywords

• Pharmaceutical benefits management
• Government medicine funding
• National pharmaceutical schedule
• Medicine subsidy administration
• Public pharmaceutical procurement

Headquarters

HQ city

Wellington

HQ country

New Zealand

HQ region

Oceania

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Infrastructure, Others

Distribution channels4 records

Marketing channels4 records

Core offering

PHARMAC manages the national Pharmaceutical Schedule (Te Rārangi Rongoā), the comprehensive list of all medicines, vaccines, and related products funded by the New Zealand Government. It operates the Community Schedule for pharmacy dispensing, the Hospital Medicines List (HML) for hospital use, the Practitioners Supply Order (PSO), the Ambulance Medicines List, and the Application Tracker for funding application status. The agency also runs the Hospital Medical Devices Programme and processes Special Authority, NPPA, and Exceptional Circumstances funding applications.

Product overview

PHARMAC (Pharmaceutical Management Agency) is New Zealand's government agency responsible for deciding which medicines, vaccines, and related products will be funded by the government. Rather than a single product, PHARMAC operates a portfolio of interconnected systems and programmes. The core offering is the Pharmaceutical Schedule (Te Rārangi Rongoā), which includes the Community Schedule for community pharmacy dispensing, the Hospital Medicines List (HML) for hospital use, the Practitioners Supply Order (PSO) system, and the Ambulance Medicines List (Section E). Supporting systems include the Application Tracker for monitoring funding applications, the Hospital Medical Devices Programme for contracting hospital equipment, the Exceptional Circumstances Framework for accessing non-scheduled medicines, and various application services including Special Authority and NPPA applications. PHARMAC also manages specialty programmes such as Continuous Glucose Monitors and Insulin Pumps, the ADHD Treatments Management Programme, and the Timely Assessment Programme. Extemporaneously Compounded Products (ECPs) and galenicals are funded for patients requiring specially compounded medicines.

Differentiator

Problem solved

Functional benefit

Products and services

• Pharmaceutical Schedule (Te Rārangi Rongoā) Comprehensive national listing of all medicines, vaccines, and related products funded by the New Zealand Government, including access conditions and pricing information for the public system.
• Community Schedule Online searchable database of all medicines funded in the community setting for dispensing at community pharmacies across New Zealand.
• Hospital Medicines List (HML) List of medicines that may be used in Te Whatu Ora hospitals, including any access conditions or restrictions that apply for hospital use.
• Practitioners Supply Order (PSO) List of medicines that practitioners can order for emergency use, teaching, and demonstration purposes where individual prescriptions are not practical.
• Ambulance Medicines List (Section E) Medicines funded for ambulance services across New Zealand for emergency medical service use.
• Extemporaneously Compounded Products (ECPs) and Galenicals Specially compounded pharmaceutical products including dermatological ECPs, oral liquid mixtures, and standard formulae funded for patients with specific needs.
• Hospital Medical Devices Programme National programme managing the contracting and listing of medical devices used in Health New Zealand | Te Whatu Ora hospitals.
• Application Tracker Online tool containing all medicine funding applications received and their current status, including applications that have been funded.
• Special Authority Applications Online forms and processes for applying for Special Authority approvals to access certain funded medicines with restrictions.
• Named Patient Pharmaceutical Assessment (NPPA) Applications Application process for exceptional circumstances medicine access for named patients requiring medicines not on the standard Schedule.
• Exceptional Circumstances Forms Specific funding application forms for medicines including bevacizumab, imiglucerase, trastuzumab, and others requiring exceptional circumstances approval.
• Continuous Glucose Monitors (CGMs) and Insulin Pumps Programme Funded programme providing continuous glucose monitors and insulin pumps for eligible people with type 1 diabetes in New Zealand.
• COVID-19 Antiviral Treatments Programme Information and access criteria for government-funded COVID-19 oral antiviral treatments for eligible New Zealanders.
• ADHD Treatments Management Programme Changes to how ADHD treatments are managed in New Zealand, including funding of additional ADHD medicines to improve supply.
• Timely Assessment Programme (TAP) Programme focused on ensuring timely assessment of funding applications for medicines within PHARMAC's funding process.

Quantifiable outcome

• Over 4 million New Zealanders access funded medicines every year

Segments1 record

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature1 record

Partnerships

Four partnerships are on record, tiered core and minor.

• Health New Zealand | Te Whatu OracoreStrategic or Co-development PartnerPHARMAC works with Health New Zealand | Te Whatu Ora, which operates the public hospital system. PHARMAC funds medicines for use in hospitals and coordinates with Te Whatu Ora on supply management and hospital medical devices contracting.
• Ministry of Health | Manatū HauoracoreStrategic or Co-development PartnerThe Ministry of Health focuses on strategy, policy, regulation, and monitoring outcomes for the health system. PHARMAC coordinates with the Ministry on healthcare policy and funding alignment.
• MedsafecoreStrategic or Co-development PartnerMedsafe is the regulatory body that ensures medicines in New Zealand are safe and effective. PHARMAC works within Medsafe's regulatory framework to fund approved medicines.
• Pharmaceutical Society of New Zealand (PSNZ)minorStrategic or Co-development PartnerPHARMAC references the Pharmaceutical Society of New Zealand's compounding guidelines for extemporaneously compounded oral liquids, ensuring consistency and avoiding medicine dosing errors.

Recent moves6 records

Expansion highlights6 records

Direct peers

• Pharmaceutical Benefits Advisory Committee (PBAC): The independent expert body that recommends which medicines should be funded under Australia's PBS. PBAC's health technology assessment and cost-effectiveness evaluation mandate is functionally analogous to PHARMAC's funding-decision process for the NZ Pharmaceutical Schedule.
• NHS Business Services Authority: UK arm's-length body that administers NHS pharmaceutical payments, prescription processing, and supply chain data. Directly comparable to PHARMAC's back-office pharmaceutical schedule administration and supply management functions.
• Canadian Agency for Drugs and Technologies in Health (CADTH): Canada's national HTA and drug reimbursement recommendation agency. CADTH provides formulary listing recommendations to Canadian provinces (similar to PHARMAC's role for NZ), including health technology assessments and pricing negotiation support for public payers.
• NICE (National Institute for Health and Care Excellence): UK's HTA body that evaluates which medicines and treatments the NHS should fund. While NICE is primarily an HTA evaluator, its cost-per-QALY threshold and funding recommendation function directly parallel PHARMAC's pharmaceutical funding decisions.
• Pharmaceutical Benefits Scheme (PBS) Australia: Australia's national subsidized medicines programme, the most direct functional peer to PHARMAC. PBS similarly manages a fixed-budget national formulary for ~25 million Australians, negotiating with suppliers on behalf of government and operating a Schedule of Pharmaceutical Benefits.

Broad incumbents

• Express Scripts (Evernorth): Major US PBM and pharmacy services business within Cigna's Evernorth health services portfolio. Directly comparable commercial PBM counterpart to PHARMAC's procurement and formulary administration function, although operating in a private-payor context rather than national single-payer.
• OptumRx (UnitedHealth Group): Another top-3 US PBM handling pharmacy benefit administration for tens of millions of members. Comparable to PHARMAC in core capabilities (formulary management, pharmacy network administration, drug pricing negotiation) but embedded within an integrated US insurance/PBM conglomerate.
• CVS Health (Caremark PBM): The largest US Pharmacy Benefit Manager, administering prescription drug benefits for ~100M+ Americans. Operates a private-sector equivalent of PHARMAC's centralized formulary and price-negotiation mandate, but at much larger scale and as a commercial entity rather than a Crown agency.

Others

• IQVIA: Global life-sciences analytics and clinical research provider that supplies real-world evidence, commercial analytics, and market access services used by PBMs and national payers like PHARMAC for pricing negotiations and outcome-based contract design. Adjacent rather than a direct competitor.
• Medsafe (New Zealand Medicines and Medical Devices Safety Authority): NZ's medicines regulator operating under the Ministry of Health. While Medsafe regulates market authorization (which medicines can be sold in NZ) rather than funding, it is PHARMAC's upstream counterpart in the medicines lifecycle and works closely with PHARMAC on funding decisions for approved medicines.

Market position

Strengths4 records

Weaknesses5 records

Competitive moat3 records

Key risks6 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/PHARMACnz
• LinkedInlinkedin.com/company/pharmaceutical-management-agency
• Xx.com/PHARMACnz

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds1 record

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Pharmaceutical Management Agency (PHARMAC)