Medsafe has approved a new medicine, Ronapreve, for treating Covid-19 though its effectiveness against the latest variant, Omicron, is yet to be shown.
Medsafe describes Ronapreve as "a monoclonal antibody drug" that mimics the body's natural defences for fighting disease.
Group manager Chris James describes it as a "significant advance" for treating Covid-19.
He said it was important because it reduced the severity of the disease and shortened the length of symptoms and infectious period, which in turn reduced the risk of patients passing the virus on to other people.
James said Ronapreve was approved for the treatment of patients who are badly affected by Covid-19 and who were at more risk of their illness becoming severe.
It is also approved for preventing Covid-19 in people who have been exposed to the virus and have a medical condition that makes them unlikely to be protected by vaccination.
"This group includes people with compromised immune systems such as individuals with cancer, transplant recipients and those with immunodeficiency disorders. These individuals are often susceptible to infections and respond poorly to vaccination," James said.
The drug is not approved for use in children.
James said it would be an extra tool for health professionals that allowed them to save lives and take pressure off hospitals.
Ronapreve is known to be effective against the Delta variant and research is now focusing on its effectiveness against the Omicron variant.
Medsafe will continue to evaluate that information when it becomes available, James said.
In late October, the government announced that Pharmac had already secured access to enough doses of Ronapreve to be able to treat 5300 people and expects to be able to buy more next year.
Ronapreve and four other drugs, including molnupiravir, have been fast tracked for approval for use during the pandemic.
Read RNZ's summary of all the treatment options for Covid-19
Dexamethasone, an existing steroid treatment, has also been approved for treatment as it helps limit the body's over-reaction to Covid-19 that can occur in severe cases of infection.
James said the Ministry of Health was still focused on getting as many people as possible vaccinated, including booster shots, and practical measures like wearing facemasks, social distancing and scanning into any locations visited.