New Zealand is significantly behind other OECD nations in providing access to new medicines, according to a report released in October 2023 by the New Zealand Institute of Economic Research. The findings highlight that the country spends only 0.4% of its GDP on outpatient pharmaceuticals, a fraction of Australia’s 1.2% and among the lowest in the developed world. This gap in access is affecting the health outcomes and quality of life for many New Zealanders, particularly those with cancer, rare disorders, and chronic conditions.

Health Outcomes at Risk

The report, titled the Health Priorities Report, notes that many therapies funded in Australia and the UK are not available in New Zealand. This disparity in access is not just a matter of cost but also of health outcomes. Patients with life-threatening conditions such as certain cancers and rare genetic disorders are missing out on treatments that could improve their survival rates and quality of life.

According to the report, New Zealand’s current system is not keeping pace with medical innovation seen in other developed countries. The findings reflect consistent feedback from patients and clinicians that the medicines access system is not meeting the needs of those who rely on advanced therapies.

“Access to innovative medicines in New Zealand remains significantly behind many comparable nations, affecting the health outcomes and quality of life for many New Zealanders, particularly those with cancer, rare disorders and chronic conditions,” the report said.

Government Response and Reforms

Health Minister David Seymour said the report “supports our direction, and I strongly agree with most of the points it makes.” He emphasized that the government is committed to improving access to medicines and has already allocated Pharmac its largest ever budget of $6.294 billion over four years, including a $604 million uplift since November 1, 2023.

Seymour stated that Pharmac has made 122 decisions to fund or widen access to medicines, benefiting over 200,000 patients. He said the government is “not stopping there” and will continue to secure more funding for Pharmac to ensure Kiwis have access to the medicines they need.

However, when asked about the report’s recommendation to prioritize health equity for Māori, Pacific peoples, and underserved communities, Seymour said: “A recommendation to promote health equity by giving certain groups of people preferential treatment isn’t something I’m looking into. This Government has been very clear. Health services should be delivered based on need, not race.”

Owen Smith, general manager of pharmaceutical company Bristol Myers Squibb Australia and New Zealand, which commissioned the report, said there is a “clear and strong consensus from those consulted that reform is necessary to improve access to medicines in New Zealand to support better outcomes for patients and, over time, help reduce pressure across the wider health system.”

Call for Systemic Change

Peter Boyes, author of the report, emphasized that the findings are intended to support a constructive, evidence-based discussion on how the system could evolve to better meet patient needs while remaining transparent, equitable, and fiscally responsible.

“The findings reflect consistent feedback from patients and clinicians that New Zealand’s medicines access system does not always keep pace with the speed of medical innovation seen overseas,” Boyes said.

The report outlines five priority areas for improvement, including the need for more funding for Pharmac, faster decision-making on drug approvals, and better support for patients with rare diseases. These recommendations come as pressure mounts on the government to address the growing gap in access to life-saving treatments.

With the global healthcare landscape evolving rapidly, experts warn that without significant reform, New Zealand risks falling further behind in providing equitable and timely access to new medicines. The coming months will be critical as the government considers how to implement the report’s findings and secure the necessary resources to support a more responsive and effective healthcare system.