New Zealand Proposes New Pharmac Deal for Drug-Eluting Stents in Public Hospitals

The New Zealand Government has announced a provisional procurement proposal for coronary drug‑eluting stents in public hospitals, marking the first major medical device proposal since changes were introduced to improve the procurement process. Announced on 26 March 2026, the agreement negotiated by Pharmac could deliver estimated savings of $1.2m per year while maintaining clinical choice for hospitals. The proposal is now open for consultation with healthcare professionals and sector stakeholders before a final decision is made.

According to the official government announcement, the provisional agreement would grant Principal Supply Status for permanent coronary drug‑eluting stents used in public hospitals to Medtronic New Zealand from 1 June 2026, if consultation feedback supports the proposal.

Proposed Supply Arrangement for Coronary Stents

Under the proposed arrangement, Medtronic would supply around 65% of drug‑eluting stents used by public hospitals for a three‑year period. Other brands would remain listed on the Pharmaceutical Schedule, allowing hospitals to continue purchasing alternative devices where clinically appropriate.

This means that up to 35% of the drug‑eluting stents used across public hospitals could still come from other suppliers. Drug‑eluting stents are small mesh tubes inserted into coronary arteries to keep them open while gradually releasing medication that helps prevent the artery from narrowing again.

“When you spend better, you can afford more,” — David Seymour, Associate Health Minister, New Zealand Government

“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,” — David Seymour, Associate Health Minister, New Zealand Government

Procurement Reform Enables New Medical Device Proposals

The proposal follows reforms introduced last year to address longstanding delays in medical device procurement. According to Mr Seymour, the previous system had stalled progress for more than a decade, limiting the ability of health agencies to negotiate national supply arrangements.

“Medical device procurement was paralysed for 13 years. Last year we made procurement more efficient, certain, and transparent. Now we can get the benefits,” — David Seymour, Associate Health Minister, New Zealand Government

The updated framework divides procurement responsibilities between Pharmac and Health New Zealand, with each agency responsible for different categories of medical devices while collaborating on planning and implementation. The changes are part of broader health system modernisation efforts, which complement initiatives such as New Zealand’s 10-year digital healthcare plan aimed at improving patient-centred services across the health system.

Clinical Input and Implementation Planning

Pharmac and Health New Zealand worked with the Interventional Cardiology Advisory Group during the development of the proposal. The group provided clinical guidance on the design of the procurement model and assessed the suitability of the proposed stents.

If approved, both agencies will coordinate the transition to the new supply arrangement. This would include collaboration with Medtronic to deliver training, education, and support to hospital teams adopting the devices.

New Zealand’s health sector has increasingly combined procurement reform with wider digital and data initiatives, including projects where AI tools are being introduced across healthcare services to support clinical decision-making and system efficiency.

Consultation Open Until Late April

Pharmac is seeking feedback from clinicians, procurement specialists, funding managers, and suppliers to assess the impact of the proposal before confirming the agreement.

Consultation will remain open until 4pm on Tuesday 28 April. Stakeholders can submit feedback directly to Pharmac via email.