Drug industry criticises review of Pharmac

A drug company lobby group has sharply criticised the appointment of a Canadian doctor to review Pharmac's operating policies and procedures, saying it is "potentially unlawful."

Emergency medicine specialist Joel Lexchin was appointed last week by the Health Funding Authority, which owns Pharmac, the Government drug-funding agency.

The Researched Medicines Industry Association, representing most of the pharmaceutical companies whose drugs are sold in New Zealand, said Dr Lexchin "has a massive conflict of interest should he attempt to undertake this task."

It said the doctor's appointment was "quite inappropriate" as he was not legally qualified to deal with the legal complexities of the operating policies and procedures.

The association had supported Health Minister Annette King's suggestion of appointing a retired High Court judge to review Pharmac's operating policies and procedures.

Dr Lexchin was also the secretary/treasurer of an anti-drug industry organisation called the Medical Lobby for Appropriate Marketing, which received money from Pharmac to produce a magazine called Health Scepticism, the association said.

"Any report he produced would not be worth the paper it was written on," the association's board said.

"We are advised that this appointment is potentially unlawful as it is procedurally unfair."

Pharmac was conducting its own review of its operating policies and procedures, which the association also criticised.

It said Pharmac sought to change the content of the policies and procedures after contracts had been formally signed off.

Dr Lexchin's review will begin when Pharmac's own review is completed.

- NZPA