Govt Unveils Major Pharmacy Ownership and Medicines Advertising Reforms

Associate Health Minister Casey Costello announced that the new Medical Products Bill will remove the long-standing requirement for pharmacies to be majority owned by registered pharmacists.

The Government has confirmed sweeping reforms to New Zealand’s pharmacy ownership laws and rules governing the advertising of medicines, as part of the forthcoming Medical Products Bill. The reforms, detailed in Cabinet papers released today, mark one of the most significant overhauls of medicines regulation in decades, aimed at modernising access, governance, and innovation across the health sector.

Pharmacy Ownership to Open Up for Greater Flexibility

Associate Health Minister Casey Costello announced that the new Medical Products Bill will remove the long-standing requirement for pharmacies to be majority owned by registered pharmacists. The move, she said, will encourage investment, innovation, and improved access to healthcare while retaining strict safeguards for patient safety.

“The new bill will remove restrictions on ownership of community pharmacies, allowing for more flexibility and innovation that will improve safe access to medicines and healthcare,” Ms Costello said.

Under the current Medicines Act 1981, pharmacy ownership has been restricted to ensure that registered pharmacists hold at least 51 percent of ownership in community pharmacies. However, this structure has often been criticised for being outdated and overly restrictive, leading to complex ownership arrangements involving corporate entities and investors.

“This is an antiquated and unnecessary law that companies have found complex ways of working around,” Ms Costello explained. “We want to make sure pharmacists can concentrate on what matters—providing high-quality care to patients.”

Strong Regulatory Oversight to Remain

While the ownership model will become more open, the Government has stressed that pharmacy operations will continue to be tightly regulated. Dispensing and other professional activities must still be carried out under the supervision of registered pharmacists, ensuring clinical integrity and patient safety.

To strengthen accountability, the Bill will establish a new role of ‘supervisory pharmacist’ in companies operating multiple pharmacies. This individual will bear overall responsibility for ensuring compliance with professional and regulatory standards across all branches within a company.

“These changes are about enabling different models for pharmacy ownership, allowing for more innovative and integrated healthcare that will improve safe access to medicines,” said Costello.

Reforms to Advertising Rules for Medicines and Devices

Another key pillar of the Bill involves modernising rules around the advertising of medicines and medical devices. The proposed changes will allow some flexibility for promoting unapproved medicines—under specific circumstances—while maintaining consumer protections.

Under the current law, advertising any medicine that lacks Medsafe approval is prohibited. This strict rule, according to the Minister, has sometimes produced unreasonable outcomes for individuals and organisations seeking legitimate access to emerging treatments.

“This restriction is about protecting consumers from unsafe or ineffective treatments,” Costello said. “But it’s also important that our legislation allows some common-sense exemptions. People raising money for their family members to access a promising new treatment overseas shouldn’t be at risk of a fine or jail just because the manufacturer hasn’t yet applied to bring it to New Zealand.”

The Medical Products Bill will redefine what constitutes “advertising,” ensuring that activities such as education, news reporting, and charitable fundraising are not inadvertently captured under advertising prohibitions.

Promoting Innovation and Information Access

The Bill also introduces measures to allow the promotion of unapproved medicines at medical conferences and trade shows, aligning New Zealand’s framework with international practices. This will enable healthcare professionals to stay informed about global innovations in pharmaceuticals and medical technology.

In addition, unapproved products may be promoted if approved by the Director-General of Health, particularly in the context of a public health emergency—such as during a pandemic—where rapid information dissemination is vital.

Maintaining Direct-to-Consumer Advertising with Safeguards

Despite ongoing debate, the Government has chosen to maintain the direct-to-consumer advertising (DTCA) of prescription medicines. Officials reviewed evidence on DTCA’s public health impact and found “no convincing evidence” that it causes significant harm.

However, the Bill will include provisions for the Government to make regulations restricting certain types of advertising should new risks emerge.

“Modernising medicines advertising regulations will ensure that the public has better access to information on medical products, the sector understands their responsibilities, and health practitioners are informed of innovative treatment options,” Ms Costello said.

Looking Ahead: Legislative Timeline and Scope

The Medical Products Bill is expected to be introduced to Parliament in 2026. It will replace outdated provisions of the current Medicines Act and Medicines Regulations, bringing a more flexible and future-focused approach to health product governance.

Importantly, the Bill will not cover natural health products, which are subject to separate regulatory reforms expected later.

Health sector stakeholders have broadly welcomed the changes, noting that they balance modernisation with safety. However, some have cautioned that increased corporate involvement in pharmacy ownership must not undermine professional autonomy or patient trust.

As the Government prepares to table the Bill, the coming months are likely to see vigorous debate across Parliament and the health sector about how best to achieve both innovation and accountability in the delivery of medicines and healthcare.