Dr Coleman said the government would instead be upgrading New Zealand's health products regulation scheme.
"I have asked the Ministry of Health to develop a comprehensive regulatory scheme for therapeutic products in New Zealand.
"It is important we modernise our regulation of medicines. There are benefits in bringing medicines, devices, cell and tissue therapies under a single cost-effective regulatory framework.
"Other countries are increasingly looking for assurances about health and safety of therapeutic products. We are committed to maintaining standards in line with international best practice."
Consumer healthcare products industry body, the New Zealand Self-Medication Industry Association (SMI) said it was disappointed the government had once again shelved plans for ANZTPA.
SMI executive director Tim Roper said the formation of a single regulatory body has been one of his organisation's key platforms for a number of years.
"The SMI remains a strong supporter of the joint agency. ANZTPA would have provided a unique opportunity to pursue best practice regulation through harmonisation and adoption of the best of both worlds. However, we appreciate the joint agency needs to be cost effective and efficient for both countries." Mr Roper said he was concerned about the prevailing attitude that the Australian regulatory scheme is the 'gold standard' to which New Zealand needs to harmonise, when New Zealand was progressive in some aspects.