Pharmac proposal to procure drug-eluting stents will mean savings for public hospitals

25 March 2026

Media release Hospital devices

Pharmac has negotiated a provisional agreement for the supply of drug eluting stents to public hospitals that would result in savings of $1.2m for public hospitals per annum.

The proposed deal would award Principal Supply Status for permanent coronary drug-eluting stents for public hospitals to Medtronic New Zealand. Hospitals would be able to invest the proposed savings into new and emerging technologies.  

Drug‑eluting stents are small tubes placed in narrowed or blocked heart arteries to restore blood flow and help prevent future blockages.

“These devices are a critical piece of medical technology used every day in our public hospitals,” says Pharmac’s Director of Medical Devices, Catherine Epps.

“This proposal would ensure hospitals have continued access to clinically appropriate stents, while also getting the best possible value for the health system.”

Under the agreement Medtronic would supply 65% of drug-eluting stents to public hospitals for a term of three years. The remaining 35% of stents could be sourced from alternative suppliers, meaning hospitals could continue using other brands. 

“Principal Supply Agreements are a cost-effective way for Pharmac to secure medical devices that are clinically suitable for the majority of patients, while still providing the flexibility for hospitals to use alternative stents if they need to,” says Epps.

Pharmac and Health New Zealand (Health NZ) have been working together closely on Medical Devices since the Government decided on a new way of working for the procurement of devices between Pharmac and Health NZ last year. This has included working with the Interventional Cardiology Advisory Group (ICAG) to understand the needs of the clinicians who use drug-eluting stents.

Chair of ICAG, Professor Scott Harding says the advisory group provided advice on the design of the Request for Proposal (RFP), as well as evaluating the clinical suitability of the proposed drug-eluting stents.

“When you’re talking about 65% of the market it’s critical that there’s feedback from the ground. It’s about understanding the nuances, the strengths and weaknesses of each device, from the cardiologists who have used them.” 

“No one stent is suitable for everyone – our recommendation on the proposal is that the Medtronic stent is clinically suitable for most people.”

If the proposal is approved Pharmac and Health NZ will work together to transition public hospitals to the new stents, including coordinating with Medtronic to provide training, education and support.

Pharmac has run an RFP process for principal supply of drug-eluting stents twice previously; the prior agreement ended 28 February 2026. If approved the proposed Principal Supply Status pricing would take effect from 1 June 2026. 

Pharmac is seeking feedback on this proposal.  Consultation is open until 4pm, Tuesday 28 April. Feedback can be emailed to devices@pharmac.govt.nz