The draft Invitation to Tender (ITT)

The draft ITT goes out for consultation during July and August. It is usually open for 4 weeks.

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What goes into the draft ITT?

The ITT agreement is made up of a number of  schedules. These cover:

  • the proposed medicines and related products
  • the terms and conditions successful tenders need to meet
  • data about the approximate market size
  • Pharmac’s evaluation, decision making and notification processes
  • the date by which tenders must be received by Pharmac.

Pharmac welcomes comments on the draft ITT.

They can comment on any aspect of the draft, such as:

  • feedback on the proposed terms and conditions
  • suggest other medicines and related products to include
  • identify medicines and related products that should not be included – this might be for clinical, legal or other reasons
  • indicate potential prices (non-binding)
  • indicate their intention to bid.

This is also the chance for suppliers to offer alternative commercial proposals (ACPs) to tendering.

Read more about alternative commercial proposals (ACPs)

Medicines in the tender (Schedule 2 of the ITT)

Pharmac compiles the list of medicines and related products for tendering. This is part of Schedule 2 of the ITT agreement and is commonly referred to as “Schedule 2”. We include medicines that:

  • are currently under a tender agreement, but the exclusive supply period of the agreement is about to expire
  • are coming off patent
  • have subsidy or delisting protections that are ending soon
  • have new competition. 

Schedule 2 also lists preferences, information, and requirements for each medicine. This can include:

  • what pack sizes Pharmac wants, such as 30- or 90-day packs (for tablets or capsules)
  • whether tablets should be scored
  • whether Pharmac would award a tender for wider funded access or not
  • whether the medicine is currently listed in the Pharmaceutical Schedule
  • any restrictions the listing may be subject to
  • whether longer transition periods may apply
  • indicative usage data for medicines.

Where Pharmac notes a preference, we may still consider and award tenders that do not meet this preference.

As outlined in the ITT agreement, it’s Pharmac’s sole discretion to consider and accept a non-conforming bid.

Alternative commercial proposals (ACPs)

Suppliers can submit alternative commercial proposals (ACPs) during the consultation period for the draft ITT. Each year we outline the specific requirements and guidance for ACPs in the draft ITT consultation.

Example: an ACP may offer reduced prices on a set of medicines if Pharmac delays tendering these medicines.

Pharmac needs very good reasons before we’ll accept an ACP. Pharmac cannot give market exclusivity outside of a competitive procurement process. That means medicines funded under ACP cannot get:

  • Sole Subsidised Supply
  • Hospital Supply Status
  • Principal Supply Status.

Read more

What to include in a tender bid

Check previous Invitations to Tender