Wellington, Sept 7 NZPA - Competition between pharmaceutical companies over the heart drug metoprolol has resulted in a $65 million saving over five years for government drug buying agency Pharmac.

Metoprolol, a beta-blocker, is used by about 200,000 people to treat raised blood pressure and heart failure.

Pharmac acting chief executive Steffan Crausaz said the savings were the result of competition between pharmaceutical companies for supply of the same medicine.

"This gives us the opportunity to reduce prices, which in turn helps us to manage expenditure and fund more medicines," he said.

"Where one supplier has a monopoly, prices are generally higher. When companies compete, prices generally reduce. This is what we have seen in the market for metoprolol."

As part of the negotiations, the price was also lowered on prostate cancer medicine goserelin, Mr Crausaz said.

"The net effect is a saving of around $65 million, if the new prices are applied over the next five years," he said.

"This makes it one of the largest savings achieved in dollar terms in Pharmac's history.

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