New Zealand offers no appeal for drug companies because it is difficult to make a sale, the Cancer Society says.
Pharmac says this week’s $1.7 billion boost to its budget over four years will keep it afloat, but will not cover new medicines.
The government said the extra cash injection, which takes the agency’s budget to more than $6b over the period, was needed to fix a funding shortfall left by the previous government.
Pharmac chief executive Sarah Fitt said the increase would ensure ongoing access to all funded medicines and allow it to keep working on continuous glucose monitors for diabetes, and more treatments for people with myeloma.
However, any money for new drugs would have to come from the Budget 2024 announcement.
Cancer Society chief executive Dr Rachael Hart said the funding offered no capacity to invest in new drugs.
New Zealand was at the bottom of OECD rankings in terms of spending on medicines, "so we need a radically new approach ... [to] keep pace with technological advancement".
New Zealand needed to start benchmarking itself against other countries and consider the capped nature of the medicines budget which should be "right-sized" — possibly with another $2b or $3b.
Other countries’ basic standard of care was not available for New Zealand patients.
Drug manufacturers were also not holding clinical trials in New Zealand because they knew their medications would not be funded once they were approved for general use, Dr Hart said.
The Cancer Society would be talking to the government about funding for the 13 cancer drugs National had promised to pay for, during the last election campaign.
