Minister David Seymour Demands Pharmac Modernisation to Improve Medicine Access

Government Pushes for Sweeping Reforms in New Zealand’s Medicine-Buying Agency

Wellington, New Zealand – July 21, 2025:
Associate Health Minister David Seymour has outlined an ambitious roadmap for reforming Pharmac, New Zealand’s government agency tasked with managing the nation’s medicine purchasing. Addressing a press briefing, Seymour underscored his commitment to providing timely and equitable access to essential medicines for all New Zealanders, describing pharmaceutical funding decisions as “a matter of life and death, or the difference between a life of suffering and one of freedom”.

Key Accomplishments in 2024-2025

The Minister acknowledged that Pharmac has made strides since 2024 in response to a previous letter of expectations:

• Enhanced Public Engagement:
  Pharmac reformed its consultation process, adding a new consultation phase to its annual tender to broaden public participation.

• Responsive Funding Criteria:
  Changes were implemented in funding criteria for oestradiol patches after listening to affected communities.

• Leadership Overhaul:
  Natalie McMurtry was appointed as the incoming Chief Executive, reflecting a renewed focus on transparency and patient-centered leadership.

• Stronger Consumer Voice:
  Initiatives like the Consumer Engagement Workshop and a new Consumer Working Group were established to rebuild trust and partnership with patients.

• Expanded Medicine Access:
  An additional 66 medicines have been funded using a government budget boost, a move projected to benefit more than 200,000 people.

Despite these improvements, Seymour emphasized there is more to be done to address persistent delays and limited medicine availability compared to other OECD countries1.

New Directives for 2025: Innovation, Efficiency, and Transparency

Minister Seymour has issued a new letter of expectations for Pharmac, detailing seven key priorities:

1. Optimise Assessment and Procurement:
   Modernise and streamline medicine assessment procedures to deliver faster decisions and reduce bureaucratic obstacles.

2. Leverage Artificial Intelligence:
   Implement AI tools to improve efficiency and the speed of decision-making.

3. Account for Societal Costs:
   Consider broader economic and social impacts, not just direct costs, in funding decisions.

4. Boost Stakeholder Engagement:
   Involve clinicians, patients, and the pharmaceutical industry early and often in the funding process.

5. Pursue New Funding Avenues:
   Explore partnerships, philanthropic support, and new public funding mechanisms to enlarge the resource pool for vital medicines and technologies.

6. Establish Clear Metrics:
   Publish measurable performance indicators and ensure clear communication of funding decisions.

7. Prioritise Patient-Centered Engagement:
   Involve patients in every stage of decision-making, moving engagement upstream from post-decision feedback to early participation.

Addressing Systemic Challenges

The reform push comes amid heightened public scrutiny over perceived delays and transparency issues in Pharmac’s operations. Seymour reinforced the government’s resolve to prevent regulatory obstacles from delaying access to lifesaving treatment, stating, “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 will collaborate to implement the outlined directives, with progress updates expected to be made public. Seymour conveyed his confidence in the newly appointed leadership and their capability to deliver a more responsive, efficient, and compassionate medicine funding system.

Disclaimer: This article is based on information from the referenced news release and is intended for informational purposes only. It does not constitute official government communication or policy advice.