Increasing demand for lifestyle drugs and treatments for chronic conditions has pushed expenditure on private purchase medicines up to $70 million last year.
Drug company GlaxoSmithKline (GSK) estimates there was an increase in spending of around 6 per cent from 2003 to 2004.
Private purchase medicines are prescription medicines notsubsidised by the Government through Pharmac.
Lifestyle drugs include Viagra for erectile dysfunction, Xenical for weight loss, Zyban for quitting smoking, while medicines for chronic conditions cover arthritis, Alzheimers disease and diabetes.
The second category was a smaller proportion of the market but growing more rapidly, vice-president and managing director at GSK Lisa Bright said. It includes the 1800 New Zealanders now paying about $90 a month for Avandia, a diabetes drug.
While the government had allocated $565 million for Pharmac to subsidise medicines this year, this was insufficient to subsidise many of the new and innovative medicines that are widely available in other countries, Ms Bright claimed.
When Pharmac has been able to subsidise a new medicine, the restrictions around eligibility for that medicine mean that only a small portion of those who could benefit from it actually qualify for subsidised access, GSK said.
"Opting for private purchase medicines is no different than choosing to have an operation like a hip replacement done privately," Ms Bright said.
"Although there is a cost involved, many people are prepared to pay if they can achieve a better health outcome."
She said in a statement today that without a private market, medicines not subsidised by government would not be available in New Zealand.
Private purchase medicines are available in New Zealand for a range of conditions including type 2 diabetes, Parkinson's disease, asthma, Alzheimer's disease, depression, erectile dysfunction, eczema, osteoporosis, smoking cessation, alopecia, pain and malaria prevention and treatment.
