Following a review sought by the Otago Daily Times, Minister of Health Tony Ryall has released some information on the estimated cost of the 12-month programme of the breast cancer drug Herceptin, but the actual cost remains unclear.
Mr Ryall says that the estimated "gross cost" of the drug for the financial year is $16.2 million, but this does not include "the significant rebate received under the purchase arrangement".
Mr Ryall was not prepared to release the net cost because it involved a confidential rebate.
The public interest had been considered, but it was determined the public interest did not outweigh the reasons for withholding the information, he said.
Because the net cost has not been released by Mr Ryall, it is not known whether the amount paid would have exceeded the $9 million a year for three years referred to by the National Party in the election campaign last year.
Mr Ryall was asked to reconsider his refusal last month to release the cost of the 12-month programme after the Otago Daily Times complained to the Office of the Ombudsmen.
Mr Ryall had refused to release information on the grounds it was subject to an obligation of confidence.
Making the information available would likely prejudice supply of similar information and this would not be in the public interest.
The information sought by the Otago Daily Times (originally in September) was the cost of the 12-month programme to date and the prediction of what it might cost over a year.
In his letter this week, Mr Ryall said from January to October 31 the Ministry of Health had paid $4,549,710 to district health boards and private hospitals for the 12-month programme.
He noted that this figure might not reflect the total cost of treatment during this period as some invoices might not have been presented.
This cost covers the drug alone and does not include the cost of administering the drug, something for which the Government has allowed $3.6 million this financial year.
Mr Ryall also said the overall cost to taxpayers was even further reduced by a combination of savings from fewer women in the international synergism or long duration trial which is comparing the 12-month treatment with the nine-week option.
Pharmac agreed to put $3.2 million towards the Finnish trial in 2006-07 and results are still some years away.
