2015/16 invitation to tender (suppliers)

Tender Closed

PHARMAC is seeking feedback from pharmaceutical suppliers and interested parties on:

  • A proposal to tender certain pharmaceuticals for sole supply;
  • The draft process and terms and conditions for the 2015/16 Invitation to Tender (2015/16 Tender); and
  • Commercial proposals as an alternative to tendering.

PHARMAC welcomes all feedback on the draft 2015/16 Tender. Feedback received by the deadline may be considered by the Tender Medical Evaluation Subcommittee of PTAC and would be considered by the PHARMAC Board (or its Delegate, where applicable) prior to making a decision on this proposal.

Feedback should be submitted by the following dates; late feedback may not be considered:

Alternative commercial proposal responses due by
5 pm, Thursday 27 August 2015

All other consultation responses due by
5 pm, Thursday 3 September 2015

Feedback should be provided by submitting an email or letter to the Tender Analysts:

Email: tender@pharmac.govt.nz

Letter:
Tender Analysts
PHARMAC
PO Box 10254
Wellington 6143

DDI:    
Laurence Holding:       (04) 901 2844
Chloe Dimock:            (04) 916 7263

Feedback we receive is subject to the Official Information Act 1982 (OIA) and we will consider any request to have information withheld in accordance with our obligations under the OIA. Anyone providing feedback, whether on their own account or on behalf of an organisation, and whether in a personal or professional capacity, should be aware that the content of their feedback and their identity may need to be disclosed in response to an OIA request.     

We are not able to treat any part of your feedback as confidential unless you specifically request that we do, and then only to the extent permissible under the OIA and other relevant laws and requirements. If you would like us to withhold any commercially sensitive, confidential proprietary, or personal information included in your submission, please clearly state this in your submission and identify the relevant sections of your submission that you would like it withheld.  PHARMAC will give due consideration to any such request.

Details of the proposed 2015/16 Tender

In general, the proposed 2015/16 Tender process would be similar to the 2014/15 Tender. In addition to Alternative Commercial Proposals (discussed below), we seek comments on all sections of the draft 2015/16 Tender, in particular on:

  • The proposed changes to the 2015/16 Tender;
  • An indication of any pharmaceuticals, whether or not they are included in Schedule Two of the draft 2015/16 Tender, that you consider should be tendered, and the reasons for that view. If you wish, you may provide a non-binding confidential indication of the price or price range that you might be able to offer for a line item or group of line items you wish to have tendered;
  • An indication of any pharmaceuticals, whether or not they are included in Schedule Two of the draft 2015/16 Tender, that you consider would be inappropriate to tender, and the reasons for that view, including any contractual constraints or patent protection that could restrict PHARMAC from awarding a tender on a particular pharmaceutical;
  • For Hospital Pharmaceuticals, feedback on the appropriate Discretionary Variance Limit for each pharmaceutical, in the event that a 1% Discretionary Variance Limit is not considered clinically acceptable; and
  • Feedback on any unresolved Tender Bid(s) from previous tenders that you consider should remain open for acceptance. Please note that some currently unresolved Tender Bids may be resolved prior to the consultation deadline and the final Tender being issued.

Draft Invitation to Tender

We are seeking feedback on the composition of the draft 2015/16 Tender. This is still under development and may change before it is taken to the Board for approval and subsequently issued. At this stage, but depending on the extent of any changes, PHARMAC does not intend to send out further drafts for consultation.

A complete copy of the draft 2015/16 Tender, including the proposed terms and conditions which successful tender bids would be subject to, is available on our website (www.pharmac.health.nz). The draft 2015/16 Tender comprises the following sections:

Schedule 1:       Definitions and interpretation**

Schedule 2:       The list of pharmaceuticals proposed for tender* #

Schedule 3:       The Tender process (for both hospital and community Tenders)

Schedule 4:       Contract terms for Sole Subsidised Supply and/or Hospital Supply Status

Schedule 5:       Additional contract terms for Sole Subsidised Supply Status

Schedule 6:       Additional contract terms for Hospital Supply Status

** The draft 2015/16 Tender template allows an option for medical devices to be included as part of the tender process for hospital supply, following the amendments made to the 2014/15 Tender. Note this is a template change only.

*The market data for the year ended 30 June 2015 has not yet been finalised and the units provided in Schedule Two currently consist of market data for the year ended 30 June 2014; however, finalised 2015 market data would be included in the final 2015/16 Tender. The figures included are indicative only and are provided on the basis set out in clause 1.3 of Schedule 2 of the draft 2015/16 Tender.

# The final list of products, which may change following consultation, would be released as part of the 2015/16 Tender, following Board approval. You may provide feedback on the inclusion of any additional pharmaceuticals after the 2015/16 Tender has been issued, and any such feedback would be considered by the Board (or its Delegate under Delegated Authority) before making a final decision on any product, provided that any feedback is given prior to the tender close date in late 2015.

Proposed inclusion of the following provisions in the 2015/16 Invitation to Tender

Pharmaceutical Price

PHARMAC propose to include provisions in the 2015/16 Invitation to Tender that amend the terms and conditions relating to pharmaceutical price changes in the market.

In summary, PHARMAC propose to amend the price change date for a pharmaceutical that is currently listed and awarded a tender to the following:

  • If the pharmaceutical is currently listed on the Schedule, then the price must change from the 12th of the month prior to the start date, and the supplier must provide price support to wholesalers (or other such distributors) to ensure pharmacy can purchase stock at the new price; or
  • If the pharmaceutical is currently listed on the Schedule, then the supplier may reduce the price from the 1st of the month prior to the start date instead of price support to wholesalers (or other such distributors) provided there is more than 2 months lead time.

The incumbent supplier must note in its tender bid which of the above price change criteria would apply to its pharmaceutical. If there is no notification provided by a supplier then the price change on the 12th of the month prior to the start date with price support to wholesalers (or other such distributors) would be considered the default position. 

If the pharmaceutical has a rebate, PHARMAC may at its option ask suppliers to reduce the price of the pharmaceutical on the 22nd of the month prior to the start date provided the supplier provides price support to wholesalers (or other such distributors) to ensure that pharmacy can purchase stock at the new price.

PHARMAC acknowledge that price support would require wholesalers (or other such distributors) to provide information on stockholding of a pharmaceutical to allow a supplier to provide price support which would include stock on hand of the pharmaceutical on the 12th of the month prior to the start date.

For pharmaceuticals that are not currently listed on the Schedule, the provisions stated in the terms and conditions of the draft 2015/16 Invitation to Tender will apply.

Pharmacode and NZMT numbers

PHARMAC propose to include a provision in the 2015/16 Invitation to Tender relating to the supply of product identification codes used throughout the health sector.

The provision would require that, prior to the listing of a new pharmaceutical, the supplier must provide both the Pharmacode and the New Zealand Medicines Terminology (NZMT) Containered Trade Product Pack (CTPP) number for that pharmaceutical to PHARMAC no later than the earlier of:

a)    10 business days following the market notification date; or

b)    the 5th day of the month immediately prior to the start date.  

Key Dates and Timeframes for the 2015/16 Tender:

The timelines for the 2015/16 Tender are envisaged to be similar to the 2014/15 Tender; we propose to release the final 2015/16 Invitation to Tender in early November 2015 and consequently the closing date for tender submissions would be late December 2015. The proposed timeline is outlined in the following table:

Date Event
3 August 2015 Consultation with suppliers, medical groups and interested parties on the proposed pharmaceutical list and draft Invitation to Tender.
27 August 2015 Final date for receipt of Alternative Commercial Proposals (ACPs) to tendering by PHARMAC.
3 September 2015 Final date for all consultation to be received.
September 2015 PHARMAC considers feedback from consultation, negotiates with suppliers over any ACP proposals it considers would meet PHARMAC’s Decision Criteria, and enters into provisional contracts with suppliers where appropriate.
September 2015 Meeting of the Tender Medical Evaluation Subcommittee of PTAC to consider clinical issues in relation to the proposed Tender list.
September/October 2015 Consultation and decisions on Alternative Commercial Proposals.
Early November 2015 Issuing of the 2015/16 Tender.
17 December 2015 Invitation to Tender closes.
From end of January 2016 Decisions on the first Tender winners announced.

Unresolved Tender Bids

We intend to review any unresolved Tender Bids from the 2013/14 Tender and the 2014/15 Tender prior to issuing the 2015/16 Tender.  The following Tender Bids remain unresolved:

2013/14 Invitation to Tender

Chemical Name Line Item
Aciclovir Eye oint 3%
Ciprofloxacin Eye Drops 0.3%
Hyoscine N-butylbromide Tab 10 mg
Ornidazole Tab 500 mg
Thiopental [Thiopentone] sodium Inj 500 mg
Zinc Crm BP
Zinc Oint BP

2014/15 Invitation to Tender

Chemical Name Line Item
Atorvastatin Tab 10 mg
Atorvastatin Tab 20 mg
Atorvastatin Tab 40 mg
Atorvastatin Tab 80 mg
Atropine sulphate Inj 600 mcg, 1 ml
Baclofen Inj 2 mg per ml, 5 ml
Bimatoprost Eye Drops 0.03%
Bortezomib Inj 3.5 mg
Brimonidine Tartrate with Timolol Maleate Eye drops 0.2% with timolol maleate 0.5%
Buspirone hydrochloride Tab 5 mg
Buspirone hydrochloride Tab 10 mg
Calcipotriol Crm 50 mcg per g (pack size 30 g or less)
Calcipotriol Crm 50 mcg per g (pack size greater than 30 g)
Calcipotriol Oint 50 mcg per g (pack size 30 g or less)
Calcipotriol Oint 50 mcg per g (pack size greater than 30 g)
Candesartan with hydrochlorothiazide Candesartan 8 mg, hydrochlorothiazide 12.5 mg tablet
Candesartan with hydrochlorothiazide Candesartan 16 mg, hydrochlorothiazide 12.5 mg tablet
Caspofungin Inj 50 mg
Caspofungin Inj 70 mg
Celiprolol Tab 200 mg
Chloramphenicol Eye oint 1%
Chloramphenicol Inj 1 g
Clonazepam Tab 500 mcg
Clonazepam Tab 2 mg
Clonidine Inj 150 mcg per ml, 1 ml
Condoms Latex-free 55 mm or greater (nominal width)
Crisantaspase Inj 10,000
Dipyridamole Tab long-acting 150 mg
Domperidone Tab 10 mg
Eptifibatide Inj 0.75 mg per ml, 100 ml
Eptifibatide Inj 2 mg per ml, 10 ml
Famotidine Tab 20 mg
Fludarabine phosphate Inj 50 mg
Fondaparinux sodium Inj 2.5 mg syringe
Granisetron Inj 1 mg
Hyoscine N-butylbromide Inj 20 mg, 1 ml
Ketamine Inj 100 mg per ml, 2 ml vial
Latanoprost with timolol Eye drops 50 mcg per ml with timolol 0.5%
Lidocaine [Lignocaine] Hydrochloride Inj 1%, 5 ml
Lidocaine [Lignocaine] Hydrochloride Inj 1%, 20 ml
Lidocaine [Lignocaine] Hydrochloride Inj 2%, 5 ml
Lidocaine [Lignocaine] Hydrochloride Inj 2%, 20 ml
Lidocaine [lignocaine] hydrochloride with adrenaline Inj 2% with adrenaline 1:80,000, 2.2 ml dental cartridge
Metformin Hydrochloride Tab immediate-release 1 g
Methadone hydrochloride Inj 10 mg per ml, 1 ml
Midazolam Inj 1 mg per ml, 5 ml
Midazolam Inj 5 mg per ml, 3 ml
Milrinone Inj 1 mg per ml, 10 ml
Mixed salt solution for eye irrigation Eye irrigation solution calcium chloride 0.048% with magnesium chloride 0.03%, potassium chloride 0.075%, sodium acetate 0.39%, sodium chloride 0.64% and sodium acetate 0.17%, 15 ml
Mixed salt solution for eye irrigation Eye irrigation solution calcium chloride 0.048% with magnesium chloride 0.03%, potassium chloride 0.075%, sodium acetate 0.39%, sodium chloride 0.64% and sodium acetate 0.17%, 250 ml
Mixed salt solution for eye irrigation Eye irrigation solution calcium chloride 0.048% with magnesium chloride 0.03%, potassium chloride 0.075%, sodium acetate 0.39%, sodium chloride 0.64% and sodium acetate 0.17%, 500 ml
Naloxone Hydrochloride Inj 400 mcg per ml, 1 ml
Nitrofurantoin Tab 50 mg
Nitrofurantoin Tab 100 mg
Nitrofurantoin Tab modified release 50 mg
Nitrofurantoin Tab modified release 100 mg
Oestradiol TDDS 25 mcg per day
Oestradiol TDDS 50 mcg per day
Oestradiol TDDS 75 mcg per day
Oestradiol TDDS 100 mcg per day
Oxycodone hydrochloride Inj 10 mg per ml, 1 ml
Oxycodone hydrochloride Inj 10 mg per ml, 2 ml
Oxycodone hydrochloride Inj 50 mg per ml
Oxycodone hydrochloride Tab controlled-release 5 mg
Oxycodone hydrochloride Tab controlled-release 10 mg
Oxycodone hydrochloride Tab controlled-release 20 mg
Oxycodone hydrochloride Tab controlled-release 40 mg
Oxycodone hydrochloride Tab controlled-release 80 mg
Propranolol Cap long-acting 160 mg
Pyrazinamide Tab 500 mg
Tobramycin Inj 40 mg per ml, 2 ml
Travoprost with timolol Eye drops 0.004% with timolol 0.5%
Trimethoprim with sulphamethoxazole [Co-trimoxazole] Tab trimethoprim 80 mg and sulphamethoxazole 400 mg
Urokinase Inj 10,000 iu
Urokinase Inj 100,000 iu
Urokinase Inj 500,000 iu

Should any unresolved Tender Bids be declined prior to the release of the 2015/16 Tender, PHARMAC would consider re-tendering those pharmaceuticals when the 2015/16 Tender is issued. Unresolved Tender Bids have not been included in the draft pharmaceutical list (Schedule Two).

Products not currently listed in Section B of the Pharmaceutical Schedule

The following products included in Schedule Two of the draft 2015/16 Tender are not currently listed in Section B of the Pharmaceutical Schedule:

Chemical Name Line Item
Albendazole Tab 200 mg
Aprepitant Cap 40 mg
Baclofen Oral liq
Benzoyl peroxide Gel 2.5%
Benzoyl peroxide Gel 5%
Betamethasone valerate with clioquinol Oint 0.1% with clioquinol 3%
Cephalexin monohydrate Cap 250 mg
Ciprofloxacin Ear drops 0.3%
Condoms Female condom
Dimethicone Lotn 4% - head lice suffocant
Duloxetine Cap modified-release 30 mg
Duloxetine Cap modified-release 60 mg
Glycerol Suppos 2.55 g
Glycerol Suppos 1.27 g
Hydrocortisone Oral liq 1 mg per ml
Hydrocortisone Tab 1 mg
Hydrocortisone Oint (pack size greater than 100 g)
Lamivudine Tab 300 mg
Levetiracetam Oral liq 100 mg per ml
Levetiracetam Tab 1 g
Liquid paraffin with white soft paraffin Liquid paraffin 50% with white soft paraffin 50% ointment (pack size greater than 100 g)
Liquid paraffin with white soft paraffin Liquid paraffin 50% with white soft paraffin 50% ointment (pack size of 100 g or less)
Lymecycline Cap 300 mg
Malathion Crm 1%
Malathion Lotn 0.5%
Medical lubricating jelly <200 ml
Methadone hydrochloride Tab 10 – 20 mg
Metoclopramide hydrochloride Oral liq 5 mg per 5 ml
Minoxidil Tab 2.5 mg
Minoxidil Tab 5 mg
Mupirocin Nasal oint 2% (pack size 5 g or less)
Natamycin Eye drops 5%
Nitrofurantoin Oral liq
Pyridostigmine bromide Tab modified-release 180 mg
Starch Powder
Sumatriptan Nasal spray
Tetracaine [amethocaine] hydrochloride Gel 4%
Trimethoprim Oral liq
Trimethoprim Tab 100 mg
Trimipramine maleate Cap 25 mg
Trimipramine maleate Cap 50 mg

Electronic Tender (eTender) system

The 2015/16 Tender will be distributed via PHARMAC’s eTender system. Please let us know by 5pm, 30 September 2015 if the contact details for the person responsible for submitting tender bids have changed for your company or if you would like to register your company to use the eTender system.

Alternative Commercial Proposals

PHARMAC seeks any Alternative Commercial Proposals (ACPs) to tendering that you may wish to submit. An ACP may, for example, offer price reductions on one set of pharmaceuticals in return for PHARMAC agreeing to defer tendering on another group of pharmaceuticals for a period.

Please note the following points apply to ACPs for both the community and DHB hospital markets:

  • ACPs may include more than one line item and may include pharmaceuticals not listed in Schedule Two of the draft 2015/16 Tender;
  • ACPs may seek PHARMAC’s agreement to defer tendering or application of reference pricing for a period of time for any pharmaceutical, whether or not it is listed in Schedule Two of the draft 2015/16 Tender;
  • ACPs may propose PHARMAC awarding Hospital Supply Status for Hospital Pharmaceuticals included in Schedule Two but not for Hospital Pharmaceuticals that do not appear in Schedule Two;
  • ACPs may not propose awarding Sole Subsidised Supply Status in the community;
  • PHARMAC reserves the right:
    • not to accept any ACPs; and/or
    • not to provide reasons for the acceptance or non-acceptance of any ACP; and/or
    • to enter into an agreement or arrangement that differs in a material respect from that envisaged in this letter; and

ACPs are due by 5pm, Thursday 27 August 2015. PHARMAC may not consider any ACPs that are submitted after this date.

Usage data for ‘PCT only’ injectable products

This year we will be providing ‘PCT only’ usage data prior to the release of the final 2015/16 Tender (as shown below). These volumes are approximate and indicative only. PHARMAC makes no representation as to the accuracy of these figures or as to the level of sales or likely sales of any tender item.

Chemical Total usage (mg)*
Azacitidine 43,000
Dacarbazine 890,000
Liposomal daunorubicin Not currently listed
Mesna 5,900,000
Pegylated liposomal doxorubicin Not currently listed
Pemetrexed Not currently listed
Topotecan Not currently listed
*Usage in mg, for period between 1 January 2014 to 31 December 2014

Ambrisentan, Filgrastim, and Levetiracetam

Due to the nature of these chemicals, longer transition times may apply to ambrisentan 5 mg and 10 mg tablets, filgrastim 300 mcg per ml, and 480 mcg per ml, 0.5 ml prefilled syringes, and 300 mcg per ml, 1 ml vials, and levetiracetam 250 mg, 500 mg, and 750 mg tablets.

Changes to PHARMAC’s decision making mechanism

PHARMAC is changing the way it makes decisions. Currently, PHARMAC uses Decision Criteria to identify pharmaceuticals which best help it achieve PHARMAC’s Statutory Objective:

“to secure for eligible people in need of pharmaceuticals, the best health outcomes that are reasonably achievable from pharmaceutical treatment within the funding provided”

PHARMAC has made a decision to move away from the Decision Criteria to the Factors for Consideration. More information on the Factors for Consideration can be found on the PHARMAC website.

The issues PHARMAC considers when it makes decisions is fundamental to PHARMAC’s work, so it’s important suppliers understand what the new Factors for Consideration are, and how the change is going to occur. PHARMAC has intentionally not specified a 'go live' date, in order to be confident of effective implementation. However, PHARMAC anticipates this change may mean that some decisions relating to the 2015/2016 Tender may be made under the Decision Criteria and others will be made under the Factors for Consideration.

At the time of the release of the draft 2015/2016 Tender, PHARMAC anticipates that further information will be available relating to the timing of the transition and the effect that this change may have on the 2015/2016 Tender and PHARMAC will keep suppliers informed in this respect.