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

 

Employment: ANZ Proposes Casualisation In Whangarei Stores

ANZ workers in Whangarei could see their incomes drop by 20 to 40 percent if the bank’s proposal to reduce the number of full-time positions goes ahead says FIRST Union national organiser Tali Williams. More>>

Finance: BNZ Develops Specialist Tāmaki Māori Banking Team

BNZ develops specialist Tāmaki Māori Banking Team to support Māori as Auckland grows More>>

Pharmaceuticals: Commerce Commission To Consider Pharmaceuticals Merger

The Commerce Commission has received an application from Pfizer Inc. seeking clearance to acquire all of the shares in Hospira Inc. More>>

Real Estate: Housing Unaffordability Issues Spread

Surging house prices in Auckland and Queenstown last month pushed home ownership even further beyond the reach of first home buyers in the two districts, according to the AMP360 Home Loan Affordability Report for March. More>>

Statistics NZ: Annual Exports To China Dip Below Australia

The value of goods exports to Australia ($8.7 billion) surpassed those to China for the year ended March 2015, Statistics New Zealand said today. More>>

Science: Hookworm Discovery At Malaghan Institute

Professor Graham Le Gros has led a team which has stimulated both innate and memory responses to the parasite, discovering along the way the unexpected behaviour of one particular immune cell, in Hookworm, one of the world’s most devastating tropical ... More>>

Business: Provinces Urged To Make Full Use Of New Air Services

Provincial New Zealand has been urged to use new air services to Auckland or risk losing them either partially or completely. The stark warning was issued today by Far North mayor John Carter at a ceremony at Kaitaia airport to mark the final Air ... More>>

Mobile: 2degrees To Credit All Calls And SMS To Nepal

In the wake of the devastating earthquake in Nepal in the weekend, 2degrees will be crediting all calls and SMS messages made to mobiles and landlines in Nepal from Friday 24th April until midnight Wednesday 29th April. More>>

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news