Pharmac has started fully funding a new contraceptive, which will be available in December.
Pharmac said in a statement that by offering sole supply to one brand, Ava, it could could unlock $3 million of funding over three years that would then be available to fund other medicines.
"Sole supply means we will delist all the other brands apart from Ava.''
The agreement with Arrow pharmaceuticals for Ava enables Pharmac to fully fund the 20mcg low dose combination pill for the first time.
The cost to women choosing the oral contraceptive is $3 for a six-month prescription.