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

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news