Important Facts of the News

• Pharmac assessed against 21 expectations in the 2024/25 Letter of Expectations.
• 8 expectations fully achieved as of October 2025.
• Largest ever budget allocated to Pharmac: $6.294 billion over four years.
• Additional $604 million funding provided for enhanced operations.
• Established a monthly consumer update forum for public engagement.
• First 90-day progress report on five-year Reset Programme published recently.
• Pharmac’s first Minister oversees performance and expectations.
• Positive feedback received from consumer advocates on recent changes.

Pharmac’s Progress Gains Ministerial Approval

Pharmac has demonstrated meaningful improvements in its operations and engagement, aligning closely with the standards set out by Associate Health Minister David Seymour in his 2024/25 Letter of Expectations. Mr Seymour emphasised the vital role pharmaceutical funding plays in the wellbeing of New Zealanders, often determining the quality and longevity of life.

He underlined the importance of transparent decision-making processes that allow input from patients, their families, and healthcare providers. These expectations were outlined in the ACT-National Coalition Agreement and set the tone for restructuring Pharmac’s public engagement approach.

More Transparency and Stakeholder Involvement

Pharmac’s culture is noticeably changing, according to Mr Seymour. A milestone achievement was the release of its first 90-day report under the five-year Reset Programme. Additionally, the agency has provided regular updates on implementing the 2022 Independent Pharmac Review recommendations and published a detailed report about consumer engagement earlier in the year. These actions have been widely welcomed by consumer advocates.

Key Deliverables Achieved

Out of the 21 outlined expectations for 2024/25, eight have been accomplished fully. Notable achievements include:

• Public sharing of materials and launching a monthly forum to connect with consumers and gather feedback from early engagement efforts.
• Forming the Health Sector Implementation Group and Sector Equity Working Group to enhance collaboration.
• Introducing organisational culture tracking with quarterly and annual reporting mechanisms.
• Conducting ongoing reviews into legislative roles and technology procurement.
• Boosting involvement of consumer groups in decision-making processes and making clinical advice more open to scrutiny.

Record Funding Boost Strengthens Pharmac’s Outlook

Mr Seymour noted an entirely new phase for Pharmac, highlighting the shift in its relationship with the public. Attendees at this year’s Medicines Summit, who once protested outside the organisation’s premises, now share productive dialogues with its leadership. This transformation in engagement is bolstered by the Government’s significant budget allocation of $6.294 billion over four years, including a $604 million increase for initiatives aimed at securing better healthcare outcomes for New Zealanders.

With sustained efforts and increased funding, the Minister believes Pharmac is on a strong trajectory to meet public needs and expectations more effectively than before.