A sum of $65 million was saved over five years by government drug buying agency, Pharmac, due to competition between pharmaceutical companies over the heart drug metoprolol.

Around 200,000 people utilize Metoprolol, a beta-blocker, to treat increased blood pressure and heart failure.

Pharmac's acting chief executive Steffan Crausaz says that the competition between pharmaceutical companies for supply of the same medicine has led to the savings. He said: "This gives us the opportunity to reduce prices, which in turn helps us to manage expenditure and fund more medicines."

"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."

Crausaz explained that the price was even decreased on prostate cancer medicine, goserelin, as the part of the negotiations.

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

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