The Facts

From international comparisons to funding gaps,

this is where the evidence lives.

How does Medicines funding work in NZ?
(In a nutshell)

Key Players:

Medsafe: The regulator

Medsafe1 is New Zealand's Medicines and Medical Devices Safety Authority. It's part of the Ministry of Health and is responsible for regulating therapeutic products here.

By overseeing the regulation of therapeutic products, Medsafe plays a cruicial role in protecting public health and ensuring healthcare professionals and consumers have access to safe and effective treatments.

Pharmac: The Funder

Pharmac2 a.k.a The Pharmaceutical Management Agency, is a crown agency that decides which medicines to fund and manages a fixed budget for them

Their process involves evaluating applications, consulting with clinical experts, assessing costs and benefits, negotiations and consulting with the public.

The Process:

Getting a medicine publicly funded in New Zealand is a bit complex, and compared with other countries, we don't move very fast.
Click below for a simplified overview: 

Approval

A medicine needs to be assessed by Medsafe to make sure it's safe and effective.
Registering a medicine is about whether it can be legally supplied here, not whether or not it will be publicly funded.

Application

A supplier, healthcare professional, or even a member of the public can put in an application with Pharmac for public funding.

assessment

Pharmac considers a wide range of factors when considering a funding application, including:

  • How well the medicines works
  • The health needs it could meet
  • Cost-effectiveness
  • How well it fits within a fixed budget

Expert advisory committees review the evidence and applications are sometimes sent back for more information.

decision

Only a small number of medicines are funded each year, while many others sit on a waiting list.

Want to know more about the full funding process? 

Pharmac's funding process

Where does NZ sit internationally?

It's clear that New Zealand isn't leading the pack when it comes to publicly funded access to prescription medicines, we're not even middle of the road.

Compared to countries we think of as peers, like Australia, the UK and Finland our system funds fewer new medicines, and it takes longer to do so.  
The numbers speak for themselves.

Sources

Numbers, facts, evidence. We've got it all. Here's the data that shows New Zealand's medicines reality.
Below you can find more detail about the sources we've used on this website, and the sources we've used for our social content.
These will be regularly updated as we add new content.

On this Website

  1. Medsafe. About Medsafe.
    Available From:  https://www.medsafe.govt.nz/other/about.asp (Accessed 14 September 2025)
  2. Pharmac. What we do. Available from: https://www.pharmac.govt.nz/about/what-we-do (Accessed 16 September 2025)

In our social content