Hon David Seymour
Associate Minister of Health

Pharmac has negotiated a provisional agreement for the supply of drug eluting stents to public hospitals that would result in estimated savings of $1.2m for public hospitals per annum, says Associate Health Minister David Seymour.

If feedback is positive, the deal would award Principal Supply Status for permanent coronary drug-eluting stents for public hospitals to Medtronic New Zealand from 1 June 2026.

“When you spend better, you can afford more,” Mr Seymour says.

Under this proposal Medtronic would supply 65% of drug-eluting stents to public hospitals for a term of three years. Other brands would remain listed on the Pharmaceutical Schedule and be available for use by public hospitals. 35% of the drug-eluting stents purchased in public hospitals could be another brand that is not the Medtronic brand.

“Not only will this proposal save the health system $1.2m every year, but it will also ensure hospitals have continued access to high quality stents. A drug-eluting stent is a tiny support tube that keeps an artery open and releases medicine to stop it from re-blocking,” Mr Seymour says.

“Medical device procurement was paralysed for 13 years. Last year we made procurement more efficient, certain, and transparent. Now we can get the benefits.

“The new procurement process recognises that both Pharmac and Health New Zealand (HNZ) are best suited to managing and procuring certain devices. Each agency has separate responsibility for the procurement of certain devices, but they work together too.

“Pharmac and HNZ have worked closely to draw up this proposal. This has included working with the Interventional Cardiology Advisory Group to better understand the needs of the clinicians who use drug-eluting stents, because they know best. The advisory group provided advice on the design of the proposal, as well as evaluating the clinical suitability of the proposed stents.

“If the proposal is approved Pharmac and Health NZ will work together to transition public hospitals to the new stents. This transition will include coordinating with Medtronic to provide training, education and support to hospitals.

“Now Pharmac want to hear from health professionals, procurement personnel, funding managers and suppliers to make sure this proposal works for everyone.”

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