Todd Stephenson speaks about Pharmac and healthcare in New Zealand. Video / DailyDispatch
Act MP Todd Stephenson has investments in three biotech or drug companies - and is Act leader David Seymour’s special Pharmac envoy;
Seymour met Stephenson’s former employer in April, two months after the new MP got the Pharmac role;
Seymour also met one of the companies in which Stephenson has investments - the new MP was not present for that meeting.
Act leader and Associate Health Minister David Seymour has met representatives of three pharmaceutical companies since becoming responsible for drug-buying agency Pharmac - of which two are linked to the Act MP who serves as his special envoy for medicines.
The Opposition is calling for Act MPTodd Stephenson to sell investments in three biotech and drug companies if he is to continue using his 17 years’ experience in the pharmaceutical industry to support Seymour with his Pharmac duties.
But Seymour says Stephenson had no role in organising the meetings - although he attended two of them - and he has declared his investments publicly.
Stephenson was called a “pharmaceutical industry plant” in Parliament last week by Labour’s deputy leader Carmel Sepuloni - an allegation that drew a sharp rebuke from Deputy Prime Minister Winston Peters.
Peters said Sepuloni was “defaming … someone who’s got no chance to defend himself” with an allegation for which there was no evidence.
The questions in Parliament followed the Heraldrevealing Stephenson’s investments in three biotech or drug firms and his close links to the pharmaceutical industry.
Prime Minister Christopher Luxon told media he dealt with Seymour as the Associate Minister responsible for Pharmac and not with Stephenson, and while not briefed on the former drug company executive’s investments, noted that they had been publicly declared.
On Stephenson, he said: “He’s got a lot of expertise in the pharmaceutical world. He’s got a lot of expertise and contribution to make to Pharmac supporting David Seymour.”
The Herald reviewed Seymour’s Beehive diaries since he was appointed to his ministerial roles in November and identified three meetings with pharmaceutical companies.
Seymour today confirmed that Stephenson - his Parliamentary Private Secretary for Pharmac - attended the 30-minute meeting held with Stephenson’s former employer, Vertex Pharmaceuticals, at Parliament on April 10.
Stephenson worked for Vertex Pharmaceuticals as its “international patient engagement director” immediately before being elected. The company is known for drugs that combat serious illness and particularly for its cystic fibrosis medication.
Prior to working for Vertex Pharmaceuticals, Stephenson spent a decade working for multinational pharmaceutical giant Johnson & Johnson.
Act MP and new Parliamentary Private Secretary Todd Stephenson, Associate Minister of Health David Seymour, and Pharmac chief executive Sarah Fitt.
Seymour also met Johnson & Johnson in which Stephenson has investments, according to the Register of Pecuniary Interests. Stephenson was not present for that meeting.
Stephenson spent nine years, until 2022, working for The Janssen Pharmaceutical Companies of Johnson & Johnson.
The third pharmaceutical company Seymour met was Merck, Sharp & Dohme, on February 27 at Parliament.
While there is no direct connection to Stephenson, Merck is a member of industry body Medicines Australia, which he co-chaired for six years, and is known for collaborating with Australian multinational CSL Ltd, in which he has investments.
The diaries for Seymour’s office note Stephenson’s presence at the Merck meeting but he is not referenced as being present for the Vertex meeting. Seymour’s office said “staff” who attend meetings are not always listed in the minister’s diary.
Seymour has rejected criticism of Stephenson’s close links to the pharmaceutical industry, saying he brings valuable experience and skills.
“If we start applying a standard where no-one can work in an area where they have expertise, Parliament would suffer as a result.”
He said farmers brought expertise to agriculture policy as did teachers to education policy - “Todd shouldn’t be treated any differently”.
Seymour said the meetings were organised by his office after requests from the companies and were important in helping him understand “the challenges we face in making sure Kiwis can access life-changing medicines”.
“Todd is welcome to attend these meetings in his role as Parliamentary Private Secretary, although he did not attend all of them. He has disclosed all of his interests and since becoming a candidate has been open about his experience in patient advocacy.”
Seymour said the Government supported the independence of Pharmac which meant the drug-buying agency did not discuss specific drugs with his office and he had no way of influencing its decision-making process.
When approached, Seymour’s office said parliamentary private secretaries were not bound by the same rules as ministers and he had declared his interests as MPs were required to do so.
It referred the Herald to the Cabinet Manual which described the PPS role as “building relationships with relevant communities, representing the minister at public events, delivering speeches on occasions when the minister is not available, and assisting with administrative matters”.
“Todd is fully compliant with the Cabinet Manual and we are comfortable that there is no conflict of interest. If Todd was part of the executive he would review the situation and make appropriate arrangements.”
The Herald has posed questions to Stephenson on the issue. His office said it was a matter for Seymour to handle as minister. His office did refer Sepuloni’s comments to Stephenson but no response has been forthcoming.
Labour’s health spokeswoman Dr Ayesha Verrall said in her view Stephenson’s presence should be disclosed where he was at any meetings with companies with which he was associated.
“It feels like a grey zone where a Member of Parliament has none of the requirements of the Cabinet Manual but can work so closely with a minister - on briefings from officials, key information on Pharmac, accessing key documents - and not have any process around conflicts of interest.”
She said in her opinion Stephenson should attempt to manage any potential conflicts by selling his investments in biotech and pharmaceutical companies.
“There is always the option for MPs to sell or divest themselves of their shares as ministers would be expected to.”
David Fisher is based in Northland and has worked as a journalist for more than 30 years, winning multiple journalism awards including being twice named Reporter of the Year and being selected as one of a small number of Wolfson Press Fellows to Wolfson College, Cambridge. He joined the Herald in 2004.
