2025/26 Pharmac Letter of Expectations progress update | July 2026

The Minister identified 13 expectations across three themes for Pharmac in his 2025/26 Letter of Expectations. This report tracks our progress on delivering to these expectations.

Improving access to medicines and medical technology

Need to continue to innovate and optimise within Pharmac to ensure we are delivering greatest value for the largest number of New Zealanders we can through improving access to new medicines and medical technologies. This is how we drive better health outcomes and productivity. There is also a need to continue to explore how the different roles Pharmac undertakes in relation to health technology assessment and procurement can be optimised and made fit-for-purpose.

Progress to 30 June 2026 and summarised description

How the current statutory objectives and functions of Pharmac are working with a view to updating. Any updates could include reflecting the wider fiscal impacts to government, and broader societal and non-health outcomes, of funding medicines and medical devices. Please report back to me on this work in December 2025.

We provided initial advice to the Ministry of Health in June 2025 on options for potential amendments to Pharmac’s statutory objective and functions.

We subsequently engaged with the Consumer and Patient Working Group, the Consumer Advisory Committee and Ministry of Health on options for potential amendments to Pharmac’s statutory objective and functions. We provided a briefing to the Associate Minister of Health in September 2025. This advice included the direct feedback provided by the Consumer and Patient Working Group

In October 2025 the Health Select Committee sought advice from Pharmac on submissions received pertaining to Pharmac in the Healthy Futures (Pae Ora) Amendment Bill.

The Government agreed to make no changes Pharmac’s statutory objective and functions as part of the Healthy Futures (Pae Ora) Amendment Act.

This expectation is not included in the 2026/27 Letter of Expectations.