2017/18 invitation to tender (suppliers)

Medicines

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 2017/18 Invitation to Tender (2017/18 Tender); and
  • Commercial proposals as an alternative to tendering.

PHARMAC welcomes all feedback on the draft 2017/18 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 it’s 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, Monday 28 August 2017

All other consultation responses due by
5 pm, Friday 1 September 2017

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:   
Tim Nuthall:                  (04) 901 3233
Laura Baker:                 (04) 916 7522

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 2017/18 Tender

In general, the proposed 2017/18 Tender process would be similar to the 2016/17 Tender. In addition to Alternative Commercial Proposals (discussed below), we seek comments on all sections of the draft 2016/17 Tender, in particular on:  

  • The proposed changes to the 2017/18 Tender;
  • An indication of any pharmaceuticals, whether or not they are included in Schedule Two of the draft 2017/18 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 2017/18 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 2017/18 Tender. This is still under development and may change before it is taken to the Board (or its Delegate) 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 2017/18 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 2017/18 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

Schedule 7:  Additional special terms for particular pharmaceuticals

*The market data for the year ended 30 June 2017 has not yet been finalised and the units provided in Schedule Two currently consist of market data for the year ended 30 June 2016; however, finalised 2017 market data would be included in the final 2017/18 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 2017/18 Tender.

# The final list of products, which may change following consultation, would be released as part of the 2017/18 Tender, following Board (or its Delegate) approval. You may provide feedback on the inclusion of any additional pharmaceuticals after the 2017/18 Tender has been issued, and any such feedback would be considered by the Board (or its Delegate) before making a final decision on any product, provided that any feedback is given prior to the tender close date in late 2017.

Proposed inclusion of the following provisions in the 2017/18 Invitation to Tender

Matters for evaluation

Further information that will be considered in applying the Factors for Consideration by the Evaluation Committee when evaluating products included in the 2017/18 Tender will include;

  1. alternative manufacturers of the finished product and active ingredients (if any); and
  2. other markets in which you currently supply the Pharmaceutical.

Tender Submission Form

PHARMAC propose to include a provision in the 2017/18 Tender relating to information that must be supplied regarding a Tender Item.

The provision will state that, as well as the existing information required to be submitted in the tender submission form, additional detail and information regarding pharmaceuticals which do not require consent from Medsafe will be required as follows; 

  1. Evidence and justification as to why Consent from Medsafe is not required for the Tender item(s);
  2. Confirmation that the Tender Items(s) you are submitting a Tender Bid in respect of meet the relevant standards and/or regulatory requirements for its intended use and details on what those standards and/or regulatory requirements are; and
  3. Details on the Tender Item(s) including excipients and shelf life. 

In addition, further information regarding other markets in which the pharmaceutical or medical device is currently provided by you, may be included in the tender submission form at the supplier’s discretion.  

Price Change

PHARMAC propose to include a provision in the 2017/18 Tender that amends the terms and conditions relating to price changes in the event of award of a tender item for sole supply and/or hospital sole supply as follows.

Where your brand of the pharmaceutical is currently listed on the Pharmaceutical Schedule, if the price would result in a price increase for your brand of the pharmaceutical you must supply the pharmaceutical at the new price from the 22nd day of the month prior to the start date, and the pharmaceutical will be subsidised at the new price from the start date (as defined in the 2017/18 Tender).

PCTs

PHARMAC propose to include a provision in the 2017/18 Tender relating to a preference for PCT products that have post-compounding stability data greater than 48 hours.

Stock Reporting

PHARMAC proposes the inclusion of a provision in the 2017/18 Tender relating to a supplier providing reports to PHARMAC on pharmaceutical stock levels upon PHARMAC’s request during the sole supply and/or hospital supply status periods.

Additional Special Terms

PHARMAC proposes to include a new schedule in the 2017/18 Tender relating to special terms for the supply of somatropin as follows.

A tenderer who submits a tender bid for somatropin, should note that special terms will also apply to the supply of somatropin. In this respect, successful tenderers shall provide the following resources and related products at no cost: 

  • The provision of education, training and support Resources to endocrinologists, paediatric endocrinologists, pharmacies and patients in respect of the use of somatropin.
  • The Resources shall be provided to all endocrinologists, paediatric endocrinologists, pharmacies and patients in New Zealand or upon request by any relevant party.
  • The Resources shall be provided to patients when their prescription is filled and directly to all endocrinologists, paediatric endocrinologists and pharmacies before the commencement of any sole supply period.
  • The provision of Related Products for your proposed brand of somatropin for the benefit of patients, in respect of the use of somatropin. The Related Products shall be delivered to the nominated delivery address of the prescribed patient.

For the purposes of this paragraph: 

“Resources” shall include but not be limited to the:

  • provision of patient training and medical education and support for endocrinologists, paediatric endocrinologists and pharmacies on the use of somatropin devices, including a preference for clinical educators to talk specifically with patients and for an 0800 number to be available for patients to contact with any further queries;
  • provision of training materials (DVDs, pamphlets, leaflets, brochures) to new patients; and
  • provision of presentations and/or demonstrations on the use of somatropin devices to patients and/or healthcare professionals.

“Related Products”, which shall be inclusive of the replacement of any defective Related Product, shall include but not be limited to devices, needles, needle clippers, sharps bins, vials and other products which are required for the safe treatment of your brand of somatropin.

PHARMAC may request tenderers to provide a proposal and evidence of the Resources and Related Products after the submission of a tender bid for somatropin

Key Dates and Timeframes for the 2017/18 Tender:

The timelines for the 2017/18 Tender are envisaged to be similar to the 2016/17 Tender; we propose to release the final 2017/18 Invitation to Tender in early November 2017 and consequently the closing date for tender submissions would be late December 2017. The proposed timeline is outlined in the following table:

Date

Event

3 August 2017

Consultation with suppliers, medical groups and interested parties on the proposed pharmaceutical list and draft Invitation to Tender.

28 August 2017

Final date for receipt of Alternative Commercial Proposals (ACPs) to tendering by PHARMAC.

1 September 2017

Final date for all consultation to be received.

September 2017

PHARMAC considers feedback from consultation, negotiates with suppliers over any ACP proposals it considers would meet PHARMAC’s Factors for Consideration, and enters into provisional contracts with suppliers where appropriate.

September 2017

Meeting of the Tender Medical Evaluation Subcommittee of PTAC to consider clinical issues in relation to the proposed Tender list.

September/October 2017

Consultation and decisions on Alternative Commercial Proposals.

Early November 2017

Issuing of the 2017/18 Tender.

15 December 2017

Invitation to Tender closes.

From end of January 2018

Decisions on the first Tender winners announced.

Unresolved Tender Bids

We intend to review any unresolved Tender Bids from the 2015/16 Tender and the 2016/17 Tender prior to issuing the 2017/18 Tender.  The following Tender Bids remain unresolved:

2015/16 Invitation to Tender

Chemical Name

Line Item

Atomoxetine

Cap 10 mg

Atomoxetine

Cap 100 mg

Atomoxetine

Cap 18 mg

Atomoxetine

Cap 25 mg

Atomoxetine

Cap 40 mg

Atomoxetine

Cap 60 mg

Atomoxetine

Cap 80 mg

Clonazepam

Tab 2 mg

Clonazepam

Tab 500 mcg

Cytarabine

Inj 1 g

Cytarabine

Inj 2 g

Pemetrexed

Powder for infusion, 100 mg

Pemetrexed

Powder for infusion, 500 mg

Salbutamol

Oral liq 2 mg per 5 ml

Tamsulosin

Tab 400 mcg 

2016/17 Invitation to Tender

Chemical Name

Line Item

Adapalene

Crm 0.1%

Adapalene

Gel 0.1%

Albendazole

Tab 200 mg

Amantadine hydrochloride

Cap 100 mg

Beclomethasone Dipropionate

Metered aqueous nasal spray, 100 mcg per dose

Beclomethasone Dipropionate

Metered aqueous nasal spray, 50 mcg per dose

Benzylpenicillin Sodium [Penicillin G]

Inj 3 g

Brinzolamide

Eye drops 1%

Budesonide

Metered aqueous nasal spray, 100 mcg per dose

Budesonide

Metered aqueous nasal spray, 50 mcg per dose

Bupivacaine hydrochloride with adrenaline

Inj 2.5 mg per ml with adrenaline 1: 400,000, 20 ml sterile pack

Bupivacaine hydrochloride with adrenaline

Inj 5 mg per ml with adrenaline 1:200,000, 20 ml sterile pack

Buprenorphine with Naloxone

Tab sublingual 2 mg with naloxone 0.5 mg

Buprenorphine with Naloxone

Tab sublingual 8 mg with naloxone 2 mg

Calcipotriol

Soln 50 mcg per ml (pack size 30 ml or greater)

Calcium folinate

Inj 1g

Calcium folinate

Inj 100 mg

Calcium folinate

Inj 50 mg

Caspofungin

Inj 50 mg

Caspofungin

Inj 70 mg

Cetirizine hydrochloride

Oral liq 1 mg per ml

Cetrimide

Solution 20% (pack size of 100 ml or less)

Chlorhexidine with ethanol

Soln 2% with ethanol 70%, non-staining (pink) 100 ml

Chlorhexidine with ethanol

Soln 2% with ethanol 70%, non-staining pink (pack size less than 50 ml)

Chlorhexidine with ethanol

Soln 2% with ethanol 70%, staining (red) 100 ml

Chlorhexidine with ethanol

Soln 2% with ethanol 70%, staining red (pack size less than 50 ml)

Ciprofloxacin (current access)

Eye drops 0.3%

Ciprofloxacin (widened access)

Eye drops 0.3%

Colestimethate

Inj 150 mg

Ephedrine

Inj 3 mg per ml, 10 ml prefilled syringe

Gemcitabine hydrochloride

Inj 1 g

Gemcitabine hydrochloride

Inj 200 mg

Granisetron

Inj 1 mg per ml

Hyoscine N-buytlbromide

Inj 20 mg, 1 ml

Imiquimod

Crm 5%

Lamivudine

Oral liq 5 mg per ml

Lamivudine

Tab 100 mg

Levodopa with Carbidopa

Tab 100 mg with carbidopa 25 mg

Levodopa with Carbidopa

Tab 250 mg with carbidopa 25 mg

Levodopa with Carbidopa

Tab long-acting 200 mg with carbidopa 50 mg

Lidocaine [Lignocaine] Hydrochloride

Inj 1%, 20 ml

Lidocaine [Lignocaine] Hydrochloride

Inj 1 %, 5 ml

Lidocaine [Lignocaine] Hydrochloride

Inj 2%, 20 ml

Lidocaine [Lignocaine] Hydrochloride

Inj 2%, 5 ml

Lidocaine [Lignocaine] Hydrochloride

Spray – 10 mg dose per spray

Losartan with hydrochlorothiazide

Tab 50 mg with hydrochlorothiazide 12.5 mg

Macrogol 3350 with potassium chloride, sodium bicarbonate and sodium chloride -

Powder for oral soln 6.563 g with potassium chloride 23.3 mg, sodium bicarbonate 89.3 mg and sodium chloride 175.4 mg

Mebeverine hydrochloride

Tab 135 mg

Mercaptopurine

Tab 50 mg

Meropenem

Inj 1 g

Meropenem

Inj 500 mg

Methylphenidate Hydrochloride

Tab immediate-release 10 mg

Methylphenidate Hydrochloride

Tab immediate-release 20 mg

Methylphenidate Hydrochloride

Tab immediate-release 5 mg

Methylphenidate Hydrochloride

Tab sustained-release 20 mg

Metoclopramide hydrochloride

Inj 5 mg per ml, 2 ml ampoule

Minocycline hydrochloride

Cap 100 mg

Minocycline hydrochloride

Tab 50 mg

Moxifloxacin

Tab 400 mg

Nitrofurantoin

Tab 100 mg

Nitrofurantoin

Tab 50 mg

Nitrofurantoin

Tab modified-release 100 mg

Ondansetron

Tab disp 4 mg

Ondansetron

Tab disp 8 mg

Paraffin (current access)

White soft – 500g

Paraffin (widened access)

White soft – 500 g

Pregnancy tests

HCG urine – Pregnancy test – HCG urine – Dipstick

Pregnancy tests

HCG urine – Pregnancy test – HCG urine – Cassette

Pregnancy tests

HCG urine – Pregnancy test – HCG urine – Midstream

Ribavirin

Tab 200 mg

Ribavirin

Tab 400 mg

Ribavirin

Tab 600 mg

Tamoxifen citrate

Tab 10 mg

Tamoxifen citrate

Tab 20 mg

Tenoxicam

Inj 20 mg

Tetracaine [amethocaine] hydrochloride

Gel 4%

Thiamine hydrochloride

Tab 50 mg

Tigecycline

Inj 50 mg

Trimethoprim with sulphamethoxazole [Co-trimoxazole]

Inj 16 with sulphamethoxazole 80 mg per ml, 5 ml

Zinc

Paste (pack size 50 g or less)

Zinc and castor Oil

Oint 5% or less (pack size greater than 30 g)

Zinc and castor Oil

Oint BP (pack size greater than 30 g)

Zinc sulphate

Cap 50 g elemental

Zolmitriptan

Nasal Spray

Should any unresolved Tender Bids be declined prior to the release of the 2017/18 Tender, PHARMAC would consider re-tendering those pharmaceuticals when the 2017/18 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 2017/18 Tender are not currently listed in Section B of the Pharmaceutical Schedule:

Chemical Name Line Item

Alpha Tocopheryl Acetate

Oral liq 156 u per ml

Asenapine

10 mg sublingual wafer

Asenapine

5 mg sublingual wafer

Baclofen

Oral liq

Eplerenone

Tab 25 mg

Eplerenone

Tab 50 mg

Ferrous Gluconate with Ascorbic Acid

Tab 170 mg with ascorbic acid 40 mg

Ferrous Sulphate with Ascorbic Acid

Tab long-acting 325 mg (105 mg elemental) with ascorbic acid 500 mg

Fexofenadine

Tab 180 mg

Fosfomycin

Powder for oral solution, 3 g sachet

Furosemide

Tab 20 mg

Glucose [Dextrose]

Gel 40%

Glucose [Dextrose]

Tab 1.5 g

Glucose [Dextrose]

Tab 3.1 g

Glucose [Dextrose]

Tab 4 g

Hydrocortisone

Oint 1% (pack size 100 g or less)

Hydrocortisone

Oint 1% (pack size greater than 100 g)

Hydrogen Peroxide

Crm 2%

Indomethacin

Inj 1 mg

Indomethacin

Cap 25 mg

Indomethacin

Cap 50 mg

Indomethacin

Cap long-acting 75 mg

Indomethacin

Suppos 100 mg

Isotretinoin

Cap 5 mg

Liquid paraffin with white soft paraffin

Liquid paraffin 50% with white soft paraffin 50% ointment (pack size 100 g or less)

Liquid paraffin with white soft paraffin

Liquid paraffin 50% with white soft paraffin 50% ointment (pack size greater than 100 g)

Macrogol 3350

Powder for oral soln

Metformin Hydrochloride

Tab immediate-release 1 g

Oil in Water Emulsion (pack size 100 g or less)

Crm

Potassium citrate

Tab 99 mg

Ramipril

Cap 1.25 mg

Ramipril

Cap 2.5 mg

Ramipril

Cap 5 mg

Ramipril

Cap 10 mg

Somatropin

Inj 0.05 mg per ml – 2.5 mg per ml, including overage

Zidovudine [AZT]

Inj 10 mg per ml, 20 ml vial

Zopiclone

Tab 3.75 mg

Electronic Tender (eTender) system

The 2017/18 Tender will be distributed via PHARMAC’s electronic tendering portal. The portal requires companies to register for a user account and details of how to register will be distributed prior to the release of the final 2017/18 Invitation to Tender. Please let us know if the contact details for the person responsible for submitting tender bids have changed for your company by sending an email to the tender analysts at tender@pharmac.govt.nz by 5pm, 29 September 2017.

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 2017/18 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 2017/18 Tender;
  • ACPs may not propose awarding Sole Subsidised Supply Status in the community or Hospital Supply Status in DHB Hospitals;
  • 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. 

ACPs are due by 5pm, Monday 28 August 2017. 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 2017/18 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

456,072

Bleomycin Sulphate

11,364,795,800 **

Calcium Folinate

3,241,932

Carboplatin

3,330,505

Carmustine

2,746,622

Cisplatin

368,760

Cyclophosphamide

10,707,600

Doxorubicin Hydrochloride

493,800

Epirubicin

262,362

Fluorouracil sodium

39,202,900

Idarubicin Hydrochloride

4,072

Irinotecan

1,168,805

Mitozantrone

5,340

Oxaliplatin

998,351

Paclitaxel

1,526,710

Vinorelbine

117,450

*Usage in mg, for period between 1 January 2016 to 31 December 2016
** Usage shown in IU (international units)