AstraZeneca challenged Pharmac's decision to reduce the subsidies payable for some of AstraZenca's asthma treatments. AstraZeneca submitted that Pharmac was required to reduce payment subsidies according to the method described in Pharmac's Guidelines and that Pharmac should have referred the proposal to the Pharmacology and Therapeutic Advisory Committee (PTAC) before finalising its decision. The High Court disagreed, finding that Pharmac's Guidelines were intended to be flexible outlines and were not intended to be read in an overly formalistic way. The Court also found that while Pharmac's Decision Criteria in the Guidelines for making funding decisions were mandatory considerations, ultimately the decision as to whether or not to refer the matter to PTAC for advice remained a matter Pharmac's judgement. The Court noted that the proposal had been widely circulated and that Pharmac was not obliged, as a matter of law, to also refer the matter to the PTAC. AstraZeneca's application for review was dismissed. AstraZeneca Limited v Pharmaceutical Management Agency (HC Wellington CIV-2011-485-2314, 22/12/2011, Kós J).