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

 

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Gordon Campbell: On The Australians Scoring Trade Points Against Us With The Chinese

It hasn’t been a great year for Trade Minister Tim Groser... To top it off, Australia has just signed a FTA with China that has far better provisions on dairy exports than what New Zealand currently enjoys in our own FTA with China. More>>

ALSO:

Iwi & Local Consultation: Oil And Gas Block Offer 2015 Begins

Energy and Resources Minister Simon Bridges today announced the start of the Block Offer 2015 process for awarding oil and gas exploration permits. More>>

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news