2019/20 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 2019/20 Invitation to Tender (2019/20 Tender); and
  • Commercial proposals as an alternative to tendering.

PHARMAC welcomes all feedback on the draft 2019/20 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 26 August 2019

All other consultation responses due by
5 pm, Friday 30 August 2019

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

Emailtender@pharmac.govt.nz

Letter:
Tender Analysts
PHARMAC
PO Box 10 254
Wellington 6143

DDI:    
Emma Clarke:  (04) 830 1987
Nerissa Ramlall:  (04) 830 3824

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 2019/20 Tender

In general, the proposed 2019/20 Tender process would be similar to the 2018/19 Tender. In addition to Alternative Commercial Proposals (discussed below), we seek comments on all sections of the draft 2019/20 Tender, in particular on: 

  • The proposed changes in the draft 2019/20 Tender;
  • An indication of any pharmaceuticals, whether or not they are included in Schedule Two of the draft 2019/20 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 2019/20 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 2019/20 Tender being issued.

Draft Invitation to Tender

We are seeking feedback on the composition of the draft 2019/20 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 2019/20 Tender, including the proposed terms and conditions which successful tender bids would be subject to, is available on our website (www.pharmac.govt.nz(external link)). The draft 2019/20 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 bids)

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

Schedule 5:         Additional contract terms for Sole Supply Status

Schedule 6:         Additional contract terms for Hospital Supply Status

Schedule 7:         Additional special terms for particular pharmaceuticals

* The units provided in Schedule Two consist of market data for the year ended 30 June 2019. The figures included are indicative only and are provided on the basis set out in clause 1.3 of Schedule 2 of the draft 2019/20 Tender.

#  The final list of products, which may change following consultation, would be released as part of the 2019/20 Tender, following Board (or its Delegate) approval. You may provide feedback on the inclusion of any additional pharmaceuticals after the 2019/20 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 2019.

Proposed inclusion of the following provisions in the 2019/20 Invitation to Tender

Supplier Code of Conduct

The New Zealand Government is committed to sustainable and inclusive government procurement and the Supplier Code of Conduct outlines the Government’s expectations of suppliers in this respect.

PHARMAC expects suppliers to meet or exceed the minimum standards set out in the Supplier Code of Conduct and a provision has been included in Schedule 4 of the draft 2019/20 Tender as follows:

You shall comply with the New Zealand Government’s Supplier Code of Conduct(external link)."

Additional Special Terms

PHARMAC proposes to include additional special terms in Schedule 7 of the 2019/20 Tender for the supply of lacosamide as follows.

In respect of the identified Tender Items in Schedule 2 (lacosamide (current access) tab 50 mg, 100 mg, 150 mg and/or 200 mg or lacosamide (widened access) tab 50 mg, 100 mg, 150 mg and/or 200 mg) (“Lacosamide Tender Items”) and notwithstanding any other provision in this Agreement concerning the Sole Supply Status of the Lacosamide Tender Items, and without limiting any other actions that it may be necessary or appropriate for PHARMAC to take in response to patient safety concerns, PHARMAC may grant subsidised access, on a strictly limited basis, to an alternative brand of the relevant Lacosamide Tender Items during the Sole Supply Period to the extent that this is necessary to enable a limited number of patients to continue treatment following adverse effects or efficacy concerns in their treatment with the relevant Lacosamide Tender Items, in accordance with the following condition:

The maximum number of patients who are treated with the alternative brand of Lacosamide Tender Items shall not exceed 30 patients per calendar year, unless otherwise agreed, during the Sole Supply Period.

For the avoidance of doubt, this clause does not apply to the lacosamide (current access) inj 10 mg per ml, 20 ml Tender Item.

Key Dates and Timeframes for the 2019/20 Tender:

The timelines for the 2019/20 Tender are envisaged to be similar to the 2018/19 Tender; we propose to release the final 2019/20 Invitation to Tender in early November 2018 and consequently the closing date for tender submissions would be late December 2018. The proposed timeline is outlined in the following table:

Date

Event

2 August 2019

Consultation with suppliers, medical groups and interested parties on the proposed pharmaceutical list and draft 2019/20 Tender.

26 August 2019

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

30 August 2019

Final date for all consultation to be received.

September 2019

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 2019

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

September/October 2019

Consultation and decisions on Alternative Commercial Proposals.

Early November 2019

Issuing of the 2019/20 Tender.

13 December 2019

Invitation to Tender closes.

From end of January 2020

Announcements on Tender decisions will commence.

Unresolved Tender Bids

We intend to review any unresolved Tender Bids from the 2017/18 Tender and the 2018/19 Tender prior to issuing the 2019/20 Tender.  The following Tender Bids remain unresolved:

2017/18 Invitation to Tender

Chemical Name

Line Item

Amoxicillin clavulanate

Grans for oral liq amoxicillin 400 mg with potassium clavulanate 57 mg per 5 ml

Bumetanide

Tab 1 mg

Chlorhexidine gluconate

Mouthwash 0.2%

Colchicine

Tab 500 mcg

Diclofenac sodium

Eye drops 0.1%

Dorzolamide hydrochloride

Eye drops 2%

Ibuprofen

Tab long-acting 800 mg

Lidocaine [lignocaine] hydrochloride with adrenaline

Inj 2% with adrenaline 1:80,000, 2.2 ml dental cartridge

Methotrexate

Inj 7.5 mg prefilled syringe

Methotrexate

Inj 10 mg prefilled syringe

Methotrexate

Inj 15 mg prefilled syringe

Methotrexate

Inj 20 mg prefilled syringe

Methotrexate

Inj 25 mg prefilled syringe

Methotrexate

Inj 30 mg prefilled syringe

Midodrine

Tab 2.5 mg

Methotrexate

Inj 15 mg prefilled syringe

Methotrexate

Inj 20 mg prefilled syringe

Methotrexate

Inj 25 mg prefilled syringe

Methotrexate

Inj 30 mg prefilled syringe

Midodrine

Tab 2.5 mg

Midodrine

Tab 5 mg

Mitozantrone

Inj 2 mg per ml, 10 ml

Norethisterone

Tab 5 mg

Oxycodone hydrochloride

Oral liq 1 mg per ml

Tobramycin

Solution for inhalation 60 mg per ml, 5 ml

Zoledronic acid

Inj 4 mg per 100 ml

2018/19 Invitation to Tender

Chemical Name

Line Item

Aciclovir

Eye oint 3%

Adapalene

Crm 0.1%

Adapalene

Gel 0.1%

Adenosine

Inj 3 mg per ml, 10 ml

Amoxicillin clavulanate

Grans for oral liq amoxicillin 125 mg with potassium clavulanate 31.25 mg per 5 ml

Amoxicillin clavulanate

Grans for oral liq amoxicillin 250 mg with potassium clavulanate 62.5 mg per 5 ml

Amoxicillin clavulanate

Inj 500 mg with clavulanic acid 100 mg

Amoxicillin clavulanate

Inj 1000 mg with clavulanic acid 200 mg

Anagrelide hydrochloride

Cap 0.5 mg

Beclomethasone Dipropionate

Metered aqueous nasal spray, 50 mcg per dose

Beclomethasone Dipropionate

Metered aqueous nasal spray, 100 mcg per dose

Bendamustine

Inj 25 mg vial

Bendamustine

Inj 100 mg vial

Bortezomib

Inj 3.5 mg

Brinzolamide

Eye drops 1%

Bupivacaine hydrochloride with fentanyl

Inj 1.25mg with 2 mcg fentanyl per ml, 15 ml syringe

Bupivacaine hydrochloride with fentanyl

Inj 1.25mg with 2 mcg fentanyl per ml, 20 ml syringe

Bupivacaine hydrochloride with fentanyl

Inj 0.625 mg with fentanyl 2 mcg per ml, 200 ml bag

Bupivacaine hydrochloride with glucose

Inj 0.5% with glucose 8%, 4 ml ampoule

Calcium folinate

Inj 50 mg

Calcium folinate

Inj 1 g

Capecitabine

Tab 500 mg

Capecitabine

Tab 150 mg

Captopril

Oral liq 5 mg per ml

Cefalexin monohydrate

Cap 500 mg

Chloramphenicol

Eye oint 1%

Cyclizine lactate

Inj 50 mg per ml, 1 ml

Dapsone

Tab 100 mg

Dapsone

Tab 25 mg

Doxorubicin

Inj 50 mg

Enalapril

Tab 5 mg

Enalapril

Tab 10 mg

Enalapril

Tab 20 mg

Ethambutol hydrochloride

Tab 100 mg

Ethambutol hydrochloride

Tab 400 mg

Fentanyl

inj 10 mcg per ml, 50 ml prefilled syringe

Fentanyl

inj 10 mcg per ml, 10 ml syringe

Fentanyl

inj 20 mcg per ml, 100 ml bag

Fluorouracil sodium

Inj 50 mg per ml, 50 ml

Ganciclovir

Inj 500 mg

Hydrocortisone

Inj 50 mg per ml, 2 ml

Hydrocortisone

Crm 1% (pack size greater than or equal to 15 g and less than or equal to 100 g)

Hydrocortisone

Crm 1% (pack size greater than 100 g)

Iron sucrose

Inj 20 mg per ml, 5 ml ampoule

Levonorgestrel

0.75 mg - 1.5 mg

Levosimendan

Inj 2.5 mg per ml, 5 ml

Lidocaine [Ligocaine] hydrochloride with chlorhexidine

Gel 2% with 0.05% chlorhexidine, 10 ml urethral syringe

Loperamide hydrochloride [split market]

Tab 2 mg

Loratadine

Oral liq 1 mg per ml

Macrogol 3350 with ascorbic acid, potassium chloride and sodium chloride

Powder for oral soln 755.68 mg with ascorbic acid 85.16 mg, potassium chloride 10.55 mg, sodium chloride 37.33 mg and sodium sulphate 80.62 mg per g, 210 g sachet

Macrogol 3350 with ascorbic acid, potassium chloride and sodium chloride

Powder for oral soln 755.68 mg with ascorbic acid 85.16 mg, potassium chloride 10.55 mg, sodium chloride 37.33 mg and sodium sulphate 80.62 mg per g, 70 g sachet

Methylprednisolone aceponate

Crm 0.1%

Minocycline hydrochloride

Cap 100 mg

Minocycline hydrochloride

Tab 50 mg

Moxifloxacin

Inj 400 mg

Moxifloxacin

Tab 400 mg

Noradrenaline

Inj 0.06 mg per ml, 50 ml syringe

Noradrenaline

Inj 0.12 mg per ml, 100 ml bag

Noradrenaline

Inj 0.16 mg per ml, 50 ml syringe

Octreotide (somatostatin analogue)

LAR 10 mg pre-filled syringe

Octreotide (somatostatin analogue)

LAR 20 mg pre-filled syringe

Octreotide (somatostatin analogue)

LAR 30 mg pre-filled syringe

Olopatadine

Eye drops 0.1%

Ornidazole

Tab 500 mg

Pantoprazole

Inj 40 mg

Pegfilgrastim

Inj 6 mg per 0.6 ml prefilled syringe

Pemetrexed

Powder for infusion, 100 mg

Pemetrexed

Powder for infusion, 500 mg

Phenoxymethylpenicillin (Penicillin V)

Grans for oral liq 125 mg per 5 ml

Phenoxymethylpenicillin (Penicillin V)

Grans for oral liq 250 mg per 5 ml

Promethazine hydrochloride

Inj 25 mg per ml, 2 ml

Rocuronium bromide

Inj 10 mg per ml, 5 ml

Sodium chloride

Aqueous nasal spray isotonic

Sodium citrate

Oral liq 8.8% (300 mmol/l)

Sodium nitroprusside

Inj 50 mg

Spironolactone

Tab 25 mg

Spironolactone

Tab 100 mg

Sumatriptan

Inj 12 mg per ml, 0.5 ml

Tamsulosin [Current Access]

Tab 400 mcg

Tamsulosin [Widened Access]

Tab 400 mcg

Tenoxicam

Inj 20 mg

Teriparatide

Inj 250 mcg per ml

Tigecycline

Inj 50 mg

Tolcapone

Tab 100 mg

Urea

Crm 10%

Vitamin B complex (strong)

Tab

Zinc oxide

Powder

Should any unresolved Tender Bids be declined prior to the release of the 2019/20 Tender, PHARMAC would consider re-tendering those pharmaceuticals when the 2019/20 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 2019/20 Tender are not  currently listed in Section B of the Pharmaceutical Schedule:

Chemical Name

Line Item

Alprostadil

Inj 10 mcg

Alprostadil

Inj 20 mcg

Amiloride

Tab 5 mg

Benzoyl peroxide

Soln/gel/cream/lotn 5%

Betamethasone

Inj 4 mg per ml, 1 ml

Betamethasone

Tab 500 mcg

Buserelin acetate

In 1 mg per ml, 5.5 ml

Carmellose sodium

Eye drops 0.5%

Carmellose sodium

Eye drops 1%

Ciprofloxacin

Ear drops 0.3%

Clobazam

Liq

Condoms

Female, non-latex

Condoms

Male, non-latex, 55 mm – 58 mm

Fexofenadine

Tab 180 mg

Fulvestrant

Inj 250 mg per ml

Gefitinib

Tab 250 mg

Glucose [Dextrose]

Soln 15 g

Insulin syringes, disposable with attached needle

Syringe 0.3 ml with 29 g x 4 mm needle

Insulin syringes, disposable with attached needle

Syringe 0.3 ml with 29 g x 6 mm needle

Insulin syringes, disposable with attached needle

Syringe 0.5 ml with 29 g x 4 mm needle

Insulin syringes, disposable with attached needle

Syringe 0.5 ml with 29 g x 6 mm needle

Insulin syringes, disposable with attached needle

Syringe 1 ml with 29 g x 4 mm needle

Insulin syringes, disposable with attached needle

Syringe 1 ml with 29 g x 6 mm needle

Lamivudine

Tab 300 mg

Metaraminol tartrate

Inj 0.5 mg per ml, 10 ml

Metaraminol tartrate

Inj 0.5 mg per ml, 6 ml

Metoclopramide hydrochloride

Oral liq 5 mg per 5 ml

Metronidazole

Gel 0.75%

Mitomycin C

Inj 10 mg – 20 mg

Mupirocin

Intra-nasal oint 2%

Nitazoxanide

Tab 500 mg

Nitrofurantoin

Tab modified-release

Noradrenaline

Inj 0.1 mg per ml, 50 ml syringe

Paliperidone (three-monthly depot injection)

Inj 175 mg syringe

Paliperidone (three-monthly depot injection)

Inj 250 mg – 300 mg syringe

Paliperidone (three-monthly depot injection)

Inj 350 mg syringe

Paliperidone (three-monthly depot injection)

Inj 500 mg or greater syringe

Palonosetron

Inj 250 mcg

Paraffin

Eye oint with soft white paraffin

Perindopril

Tab 8 mg – 10 mg

Pivmecillinam

Tab 200 mg

Potassium citrate

Tab

Pravastatin

Tab 10 mg

Pregnancy tests – HCG urine

Pregnancy tests – HCG urine - Dipstick

Pregnancy tests – HCG urine

Pregnancy tests – HCG urine - Midstream

Rasagiline

Tab 1 mg

Rosuvastatin

Tab 5 mg

Rosuvastatin

Tab 10 mg

Rosuvastatin

Tab 20 mg

Rosuvastatin

Tab 40 mg

Selexipag

Tab 200 mcg

Selexipag

Tab 400 mcg

Selexipag

Tab 600 mcg

Selexipag

Tab 800 mcg

Selexipag

Tab 1000 mcg

Selexipag

Tab 1200 mcg

Selexipag

Tab 1400 mcg

Selexipag

Tab 1600 mcg

Sodium acid phosphate

Enema 16% with sodium phosphate 8%

Sodium alginate with magnesium alginate

Powder for oral soln

Tacrolimus

Oint 0.03%

Tacrolimus

Oint 0.1%

Tadalafil

Tab / cap 2.5 mg

Tadalafil

Tab / cap 5 mg

Tadalafil

Tab / cap 10 mg

Tadalafil

Tab / cap 20 mg

Thiamine hydrochloride

Tab 100 mg

Trimethoprim

Tab 100 mg

Water-based lubricant

Single use sachets, 4 ml/g or larger

Zinc

Crm (pack size 50 g or less)

Zinc

Crm (pack size greater than 50 g)

Zinc

Oint (pack size 50 g or less)

Zinc

Oint (pack size greater than 50 g)

Zinc

Paste (pack size 50 g or less)

Zinc and castor oil

Crm (pack size 50 g or less)

Zinc and castor oil

Crm (pack size greater than 50 g)

Zinc and castor oil

Oint (pack size 50 g or less)

Zolmitriptan

Nasal spray

Zopiclone

Tab 3.75 mg

Zuclopenthixol decanoate

Inj 500 mg per ml

Electronic Tender (eTender) system

The 2019/20 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 2019/20 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, 27 September 2019

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 2019/20 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 2019/20 Tender;
  • ACPs may not propose awarding Sole 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 26 August 2019. PHARMAC may not consider any ACPs that are submitted after this date.

Usage data for ‘PCT only’ injectable products

The table below contains ‘PCT only’ usage data for items included in the 2019/20 Tender. 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 and description

Total usage (mg)*

Calcium folinate – tab 15 mg

9,870,441

Docetaxel

6,828,032

Etoposide

30,697,084

Etoposide phosphate

13,051,754

Hydroxyurea

22,287,281,250

Ketoconazole

6,480,000

Methotrexate

698,018,233

Mitomycin C

79,588

Paclitaxel

17,256,857

Thiotepa

409,249

* Usage in mg, for period between 1 January 2018 to 31 December 2018