1 October 2018 - PHARMAC director of operations Lisa Williams says the drug-buying system delivers good value for Kiwis, even though the true price of drugs is opaque.

Confidential deals which see New Zealand receive hundreds of millions of dollars in rebates from pharmaceutical companies unfairly hide the real cost of drugs, say international academics.

Under the system, PHARMAC negotiates with the companies to pay one price - which is made public - but then receives a confidential rebate, meaning no one except the drug companies know the actual price.

Last year, over $400 million - which is more than a third of PHARMAC's gross expenditure - was paid back by companies, and use of the practice is rising.

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