The drugmaker is griping over accusations by the government’s drug-buying agency, Pharmac, that it’s gambling with patients lives, the New Zealand Press Association reports. Pharmac medical director Peter Moodie made the comments about AstraZeneca following protracted and unresolved negotiations over cardiovascular drug Betaloc.

“Pharmaceutical suppliers must realise that when a patent runs out, other suppliers will enter the market and it is not acceptable to hold patients to ransom for commercial gain in such an unethical way,” says Moodie. “It is not acceptable for AstraZeneca to gamble with the lives of acutely ill patients in order to protect itself from competition.”

AstraZeneca’s New Zealand general manager, Lance Gravatt, tells NZPA the drugmaker is a tough negotiator but still cares about patients. “Completely flabbergasted by their statement was my initial reaction when I read it this morning,” says Gravatt. “When the country ran out of adrenaline in January this year, it was AstraZeneca that stepped in at short notice to supply the country and ensure that patients didn’t suffer. So we do definitely care, but we’re also tough negotiators.”

In a bid to pressure the government, AstraZeneca issued a statement that hospital supplies of the drug are in jeopardy over the stalled talks. Now, that’s tough negotiating.

AstraZeneca made several proposals to Pharmac over Betaloc, the latest being in late June, including a three-year agreement. However, Pharmac did not want to be locked in, and had not even responded to the latest offer, Gravatt claims. Moodie says AstraZeneca had initially notified Pharmac it would increase the price of Betaloc tablets unless Pharmac protected its market.

Pharmac reacted by notifying its intention to subsidize a generic, which wasn’t yet registered by MedSafe. “AstraZeneca is now pursuing a further tactic. In its latest communication with medical professionals, AstraZeneca has announced the termination of supply of Betaloc injection - a market solely supplied by AstraZeneca due to its relatively small size,” he says.

Gravatt stood by the company’s tactics, saying Pharmac had been told AstraZeneca wouldn’t keep supplying the low-volume, low-margin injections without the table business. “(Pharmac) need to look to the generic supplier to be able to meet that need as well and not just cherrypick from us our tablet business,” he says.