About PHARMAC
Who we are and what we do
PHARMAC (the Pharmaceutical Management Agency) is the part of the 
New Zealand Medicines System that works to ensure New Zealanders have affordable access to medicines, and that they use those medicines optimally.
See our Introduction to PHARMAC (2 pages, 248 KB) Information Sheet for more details.
Improving access to medicines
Our central role is to manage the pharmaceutical budget on behalf of District Health Boards, and to decide which medicines are funded by the Government. The list of funded medicines is published in the Pharmaceutical Schedule.
We work out which medicines provide the best health results and the best value, and then work with pharmaceutical companies to make these medicines available to New Zealanders. This means that the Government fully or partially pays the cost of most prescription medicines for New Zealanders.
The use of a budget is what sets PHARMAC apart from other international funding agencies. District Health Boards continue to hold the funding for prescription medicines.
You can use our interactive flow chart to see how PHARMAC makes its funding decisions.
Promoting the Optimal Use of Medicines
We also play an important role in helping New Zealanders understand how to make the optimal use of their medicines. Our Access and Optimal Use team runs patient information campaigns and other promotions to encourage people to use medicines well, or to improve their health through better and healthier lifestyles.
See our Improving the access and optimal use of medicines (2 pages, 415 KB)Information Sheet for more details.
Assisting DHBs
Our expertise helps District Health Boards manage their expenditure on pharmaceuticals and some other products used in hospitals. We also use our expertise in assessing new medicines to help DHBs decide which new hospital medicines are cost-effective.
We also work alongside DHBs on Access and Optimal Use campaigns like One Heart Many Lives.
Legal purpose
PHARMAC's legal purpose is:
"to secure for people in need of pharmaceuticals, the best health outcomes that are reasonably achievable from pharmaceutical treatment and from within the amount of funding provided."
New Zealand Public Health and Disability Act 2000
History
Initially set up in 1993, PHARMAC is now a stand-alone Crown entity, accountable to the Minister of Health.
You can view important events in PHARMAC's history here, and see the PHARMAC's history (2 pages, 232 KB) Information Sheet for more details.
Page updated on 16 Sep 2011
Linked documents
Introduction to PHARMAC (2 pages, 248 KB)
Pharmaceutical Management Agency information sheet Introduction to PHARMAC What is PHARMAC? The Pharmaceutical Management Agency (PHARMAC) is the New Zealand Crown agency that decides, on behalf of District Health Boards, which medicines and related products are subsidised for use in…
Improving access and optimal use of medicines (2 pages, 415 KB)
Pharmaceutical Management Agency information sheet Improving access and optimal use of medicines Making the best use of medicines The debate about access to medicines is often focused around new medicines. But getting the best out of what’s already in the…
PHARMAC's history (2 pages, 232 KB)
Pharmaceutical Management Agency information sheet PHARMAC’s history PHARMAC’s history During the 1980s medicines prices were increasing at a faster rate than other healthcare spending, and were one of the fastest growing items of Government expenditure. Growth of more than 20%…
