Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


PHARMAC tender reveals vibrant market for pharmaceuticals

PHARMAC tender reveals vibrant market for pharmaceuticals


The number of companies bidding to be suppliers through the PHARMAC tender has grown to its largest size ever.

PHARMAC runs a tender each year, asking pharmaceutical suppliers to provide pricing proposals for off-patent medicines listed on the Pharmaceutical Schedule. The current tender round, which opened in November, has now closed with a record response.

Director of Operations Sarah Fitt says PHARMAC received nearly 3500 offers to supply pharmaceuticals, and these were provided by 54 companies. The number of offers is 1000 more than the previous year. This is the largest number of offers, and the largest number of companies ever involved in the PHARMAC tender.

“What this shows is that New Zealand has a vibrant and healthy pharmaceutical supply market,” says Sarah Fitt. “The tender has run for more than a decade and is a major part of PHARMAC’s savings programmes. But it can only do this if it operates in a healthy and competitive commercial environment.”

Annual savings from last year’s tender were $34.4 million, including $4.1 million savings for DHB Hospitals – more than a third of the total savings PHARMAC reported in 2012/13.

“Having a growing range of pharmaceutical companies in New Zealand means that there is strong competition for medicine supply. This is important because it is through this competition that PHARMAC is able to secure some of the lowest prices for off-patent medicines in the world.”

“Savings from the tender become available for reinvestment in new medicines. Essentially it frees up funding that was previously committed, enabling greater health outcomes to be achieved overall.”

Products in the tender this year range from some of the most commonly-prescribed medicines in New Zealand such as paracetamol, through to medicines only used by a handful of people. The common factor is that the medicines must be off-patent, which means that multiple manufacturers can make the medicine and compete for its supply.

With the current tender bidding process closed, PHARMAC is now assessing the bids and will be announcing the successful bidders over the coming months. Assessment includes each product being considered by the Tender Medical Subcommittee, which is made up of external experts such as pharmacists and prescribers. The subcommittee checks each product’s suitability, looking at whether changes like the size, colour, or taste of a product will cause any issues.

The tender awards successful bidders with national sole supply contracts, usually for three years. The contracts require suppliers to hold at least two months of stock and to keep PHARMAC informed of any potential supply issues, so that steps can be taken to ensure ongoing supply of the medicine if required.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Fairfax Moves To Create Modern Newsroom

Fairfax Media New Zealand continues its newsroom transformation this week, with a proposal to further organise its editorial operations into focused, local teams and specialist national topic areas. More>>

ALSO:

Dairy: Fonterra Forecast For 2015/16 Season

Fonterra Co-operative Group Limited has today reduced its forecast Farmgate Milk Price for the 2014/15 season to $4.40 per kgMS. Along with its previously announced forecast dividend range of 20-30 cents per share, the change amounts to a forecast ... More>>

ALSO:

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>


BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news