2014/15 invitation to tender (medical)

Tender Closed

PHARMAC is seeking feedback from medical groups, DHB hospital pharmacies and other interested parties on:

  • A proposal to tender certain pharmaceuticals for sole supply; and
  • The draft process and terms and conditions for the 2014/15 Invitation to Tender (2014/15 Tender).

PHARMAC welcomes all feedback on the 2014/15 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) prior to making a decision on this proposal.

All responses are due by 5pm, Thursday 4 September 2014

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

Email: tender@pharmac.govt.nz

Letter:
Tender Analysts
PHARMAC
PO Box 10-254
Wellington 6143

Fax:     (04) 460 4995

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

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 2014/15 Tender

In accordance with PHARMAC’s objective (to secure, for eligible people in need of pharmaceuticals, the best health outcomes that are reasonably achievable from pharmaceutical treatment and from within the amount of funding provided), PHARMAC is consulting on a proposal to tender certain pharmaceuticals for Sole Subsidised Supply to community pharmacies and/or Hospital Supply Status for supply to DHB hospital pharmacies.

Attached to this letter (as Schedule OneTwo) is a list of pharmaceuticals that we are considering tendering for Sole Subsidised Supply and/or Hospital Supply Status. Pharmaceuticals are sorted into therapeutic groups and then listed alphabetically in each group by chemical, form and strength. Each pharmaceutical has a ‘C’ and/or ‘H’ next to it to indicate whether it is proposed to be tendered for community and/or hospital supply.

In general, the proposed Tender process would be similar to the 2013/14 Tender. A copy of the draft 2014/15 Invitation to Tender is available on our website, or by contacting PHARMAC.

We are seeking feedback on the approach outlined in the following pages, in particular on:

  • The proposed tender process and timeline;
  • The actual or potential clinical implications of awarding Sole Subsidised Supply and/or Hospital Supply Status to the pharmaceuticals listed in Schedule OneTwo, including the impact of a brand switch on patients and clinical staff; and
  • For hospital pharmaceuticals, your views on the appropriate Discretionary Variance (DV) Limit for each pharmaceutical, in the event you consider a 1% DV Limit to be clinically unacceptable.

Background

Since 1997 PHARMAC has been using the strategy of tendering pharmaceuticals for sole supply of pharmaceuticals for a fixed period of time. Regular tendering has proven to be an effective way to encourage competition among suppliers of pharmaceuticals. As in the past, the community and hospital tender processes would be run in unison, however, the pharmaceutical list for community and hospital supply may be different.

Key Aspects of Awarding a Tender for Community Pharmaceuticals:

  • For community pharmaceuticals, the tender winning brand would be the only subsidised brand for up to approximately 3 years. The Sole Subsidised Supply period would conclude on 30 June 2018 for all Tenders awarded from the 2014/15 Tender.
  • No other brand of the pharmaceutical would be listed (or subsidised) in Section B of the Pharmaceutical Schedule during the Sole Subsidised Supply period.
  • Other brands could continue to be marketed, sold and dispensed during the Sole Subsidised Supply Status period, but they would not receive a subsidy.
  • Any pharmaceutical that currently carries a manufacturer’s surcharge (that is, the additional patient charge above that of the patient co-payment) would become fully subsidised if a tender was awarded for that pharmaceutical.

Key Aspects of Awarding a Tender for DHB Hospital Pharmaceuticals:

  • For DHB hospital pharmaceuticals, the Hospital Supply Status brand would be the only brand DHB Hospitals could purchase (subject to any allowance for alternative brands under the agreed DV Limits) for up to approximately 3 years. The Hospital Supply Status period would conclude on 30 June 2018 for all tenders awarded from the 2014/15 Tender.
  • No other brand of the pharmaceutical would be listed in Section H of the Pharmaceutical Schedule during the Hospital Supply Status period.

Tender Timelines

The proposed timelines for the 2014/15 Tender are as follows:

Date Event
5 August 2014 Consultation with suppliers, medical groups and interested parties on the proposed pharmaceutical list and draft Invitation to Tender.
28 August 2014 Final date for receipt of Alternative Commercial Proposals (ACPs) to tendering by PHARMAC.
4 September 2014 Final date for all consultation to be received.
September 2014 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 2014 Meeting of the Tender Medical Evaluation Subcommittee of PTAC to consider clinical issues in relation to the proposed Tender list.
September/October 2014 Consultation and Board decisions on Alternative Commercial Proposals.
Early November 2014 Issuing of the 2014/15 Tender.
18 December 2014 Invitation to Tender closes.
From end of January 2015 Board decisions on the first Tender winners announced.

Contractual obligations for suppliers

A copy of the draft terms and conditions which would form the terms of the 2014/15 Tender contract is available on the PHARMAC website: www.pharmac.health.nz, or by phoning PHARMAC on 0800 66 00 50.

Unresolved Tender Bids

PHARMAC would review any unresolved Tender Bids from 2012/13 Tender and the 2013/14 Tender prior to issuing the 2014/15 Tender, and may close the tender for some of these items, and reissue them as part of the 2014/15 tender. The following Tender Bids remain unresolved, and may potentially be added to the 2014/15 Tender following consultation:

2012/13 Invitation to Tender

Chemical Name Line Item
Clobetasol Propionate Crm 0.05% (pack size 30 g or less)
Clobetasol Propionate Oint 0.05% (pack size 30 g or less)
Dorzolamide hydrochloride with timolol maleate Eye drops 2% with timolol maleate 0.5%
Escitalopram Tab 10 mg
Escitalopram Tab 20 mg
Latanoprost with timolol Eye drops 50 mcg per ml with timolol 0.5%
Minocycline Hydrochloride Tab 50 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
Phenoxymethylpenicillin (Penicillin V) Cap 250 mg
Phenoxymethylpenicillin (Penicillin V) Cap 500 mg
Sodium Cromoglycate Eye drops 2%
Tranexamic Acid Inj 100 mg per ml, 5 ml - 10 ml
Ziprasidone Cap 80 mg
Ziprasidone Cap 20 mg
Ziprasidone Cap 40 mg
Ziprasidone Cap 60 mg

2013/14 Invitation to Tender

Chemical Name Line Item
Aciclovir Eye oint 3%
Allopurinol Tab 100 mg
Allopurinol Tab 300 mg
Amlodipine Tab 5 mg
Amlodipine Tab 10 mg
Amlodipine Tab 2.5 mg
Aqueous Cream Crm (greater than 100 g)
Aqueous Cream Crm (100 g or less)
Aripiprazole Tab 10 mg
Aripiprazole Tab 15 mg
Aripiprazole Tab 20 mg
Aripiprazole Tab 30 mg
Artesunate Inj 60 mg
Bisoprolol Fumarate Tab 2.5 mg
Bisoprolol Fumarate Tab 5 mg
Bisoprolol Fumarate Tab 10 mg
Brinzolamide Eye Drops 1%
Calcium folinate Tab 15 mg
Carvedilol Tab 6.25 mg
Carvedilol Tab 12.5 mg
Carvedilol Tab 25 mg
Celecoxib Cap 100 mg
Celecoxib Cap 200 mg
Cetirizine hydrochloride Tab 10  mg
Chlorhexidine gluconate Soln 4%
Cidofovir Inj 75 mg per ml, 5 ml
Ciprofloxacin Eye Drops 0.3%
Cisplatin Inj 1 mg per ml, 100 ml
Cisplatin Inj 1 mg per ml, 50 ml
Citalopram hydrobromide Tab 20 mg
Clarithromycin Inj 500 mg
Clofazimine Cap 50 mg
Clofazimine Cap 50 mg
Clonazepam Tab 2 mg
Clonazepam Tab 500 mcg
Cyclophosphamide Tab 50 mg
Cyclophosphamide Inj 2 g
Cyclophosphamide Inj 1 g
Dipyridamole Tab long-acting 150 mg
Donepezil hydrochloride Tab 5 mg
Donepezil hydrochloride Tab 10 mg
Emulsifying ointment Oint BP (pack size 200 g or less)
Emulsifying ointment Oint BP (pack size greater than 200 g)
Ephedrine Inj 30 mg per ml, 1ml
Esomeprazole Inj 40 mg
Etoricoxib Tab 60 mg
Etoricoxib Tab 90 mg
Etoricoxib Tab 120 mg
Ezetimibe Tab 10 mg
Ezetimibe with simvastatin Tab 10 mg with simvastatin 20 mg
Ezetimibe with simvastatin Tab 10 mg with simvastatin 40 mg
Ezetimibe with simvastatin Tab 10 mg with simvastatin 80 mg
Ezetimibe with simvastatin Tab 10 mg with simvastatin 10 mg
Fludarabine phosphate Inj 50 mg
Fluorouracil sodium Inj 50 mg per ml, 20 ml
Fluorouracil sodium Inj 50 mg per ml, 50 ml
Fluorouracil sodium Inj 50 mg per ml, 10 ml
Fluorouracil sodium Inj 50 mg per ml, 100 ml
Hydrocortisone Crm 1% (pack size greater than 15 g and less than 100 g)
Hydrocortisone Crm 1% (pack size greater than 100 g)
Hyoscine N-butylbromide Tab 10 mg
Imipenem with cilastatin Inj 500 mg with cilastatin 500 mg
Ketamine Inj 100 mg per ml, 2 ml vial
Lice treatment lotn
Lice treatment Shampoo
Mebendazole Tab 100 mg
Mefenamic acid Cap 250 mg
Meloxicam [current access] Tab 7.5 mg
Meloxicam [widened access] Tab 7.5 mg
Metronidazole Inj 5 mg per ml, 100ml
Mitozantrone Inj 2 mg per ml, 10 ml
Mitozantrone Inj 2 mg per ml, 12.5 ml
Morphine sulphate Tab immediate release 10 mg
Morphine sulphate Tab immediate release 20 mg
Nitazoxanide Oral liquid 100mg per 5ml
Norethisterone Tab 5 mg
Nystatin Oral liq 100,000 u per ml
Omeprazole Cap 10 mg
Omeprazole Cap 20 mg
Omeprazole Cap 40 mg
Omeprazole Inj 40 mg
Omeprazole Inf 40 mg
Omeprazole Powder
Ornidazole Tab 500 mg
Oxybuprocaine hydrochloride Eye drops 0.4%, single dose
Paracetamol Tab soluble 500 mg
Permethrin Crm 5%
Pregnancy tests - hCG urine Urine diagnostic test
Propofol Inj 10 mg per ml, 20 ml vial
Propofol Inj 10 mg per ml, 20 ml ampoule
Propofol Inj 10 mg per ml, 50 ml vial
Propofol Inj 10 mg per ml, 100 ml vial
Risperidone Orally-disintegrating tablets 0.5 mg
Risperidone Orally-disintegrating tablets 1 mg
Risperidone Orally-disintegrating tablets 2 mg
Ropivacaine hydrochloride Inj 2 mg per ml, 10 ml
Ropivacaine hydrochloride Inj 2 mg per ml, 20 ml
Ropivacaine hydrochloride Inj 2 mg per ml, 100 ml
Ropivacaine hydrochloride Inj 2 mg per ml, 200 ml
Ropivacaine hydrochloride Inj 7.5 mg per ml, 10 ml
Ropivacaine hydrochloride Inj 7.5 mg per ml, 20 ml
Ropivacaine hydrochloride Inj 10 mg per ml, 10 ml
Ropivacaine hydrochloride Inj 10 mg per ml, 20 ml
Sodium chloride Inj 0.9%, 5 ml
Sodium chloride Inj 0.9%, 10 ml
Sodium chloride Inj 0.9%, 20 ml
Sodium chloride Soln 0.9% for irrigation, 30 ml
Sodium Citro-Tartrate Grans effervescent 4 g sachets
Sodium hyaluronate Inj 23 mg per ml, 0.6ml syringe
Sodium hyaluronate with chondroitin sulphate Inj 30 mg with chondroitin sulphate 40mg per ml, 0.75ml syringe
Spiramycin Tab 500 mg
Thiopental [Thiopentone] sodium Inj 500 mg
Tobramycin Inj 40 mg per ml, 2 ml
Travoprost Eye drops 0.004%
Triamcinolone acetonide Inj 10 mg per ml, 1 ml
Triamcinolone acetonide Inj 40 mg per ml, 1 ml
Triamcinolone acetonide 0.1% in Dental Paste USP
Triamcinolone acetonide Crm 0.02%
Triamcinolone acetonide Oint 0.02%
Water for Injection Purified for inj 5 ml
Water for Injection Purified for inj 10 ml
Water for Injection Purified for inj 20 ml
Wool fat Crm
Zinc Crm BP
Zinc Oint BP
Zinc and castor Oil Oint BP (pack size 30 g or less)
Zinc and castor Oil Oint BP (pack size greater than 30 g)
Zinc sulphate Cap 50 mg elemental

Should any unresolved Tender Bids be declined, PHARMAC would consider including those pharmaceuticals in the 2014/15 Tender. Currently unresolved Tender Bids have not been included in the draft pharmaceutical list set out in Schedule Two.

Distribution of Consultation Documents

Although this consultation letter has been widely distributed, should you consider that a particular person, group or agency should receive this letter and/or future tender documents, please feel free to contact PHARMAC or refer it on directly (note, all tender documents and consultations are also available from our website at www.pharmac.health.nz/news#consultation). We also invite any person or group to contact PHARMAC should you wish to meet to discuss the proposals contained in this consultation letter.

Schedule Two: Possible pharmaceuticals for tender for sole supply

Order of pharmaceuticals in this Schedule

Pharmaceuticals have been listed in groups according to the therapeutic group classification system used in the Pharmaceutical Schedule. Below is a list of these groups, and the corresponding page numbers for your ease of reference. Pharmaceuticals with indications that may apply to multiple therapeutic groups will only appear in one group.

Therapeutic Group Page Numbers
Alimentary Tract and Metabolism 9 – 10
Blood and Blood Forming Organs 10 – 12
Cardiovascular System 12 – 14
Dermatologicals 14 – 16
Genito-Urinary System 16
Hormone Preparations – Systemic excluding contraceptives 17
Infections – Agents for Systemic Use 17 – 21
Musculoskeletal System 21 – 22
Nervous System 22 – 25
Oncology and Immunosuppressants 25 – 27
Respiratory System and Allergies 27
Sensory Organs 27 – 28
Various 28 – 30

Information provided for each pharmaceutical

For each pharmaceutical (as defined by chemical name, form and strength) we have provided the following information:

  • the current ex-manufacturer subsidy per unit of measure as at 1 July 2014
  • the number of subsidised or partially subsidised units sold in the community in the year ending 30 June 2014
  • an estimate of the annual community market value at current subsidies (estimated by multiplying the volume of units subsidised in the year ending 30 June 2014 by the relevant listed unit subsidy as at 1 July 2014); and
  • comments specifically relating to the Tender of the line item and/or its current listing on the Pharmaceutical Schedule.

Explanation of terms, symbols and abbreviations

Most terms and abbreviations used are self explanatory: “tab” means tablet, “cap” means capsule, “liq” means liquid, “inj” means injection, “suppos” means suppository, “grans” mean granules and “OP” means original pack to be dispensed.

The following table explains the symbols used in the draft pharmaceutical list:

Symbol Explanation
Underlined Pharmaceutical line items where a sole supply contract is in force are underlined.  The price and subsidy for these pharmaceuticals are fixed until 30 June 20132015 unless otherwise stated in the Comments column and a listing of a new brand could only occur after that date.
C To be tendered for Sole Subsidised Supply Status (community pharmaceuticals).
H To be tendered for Hospital Supply Status (DHB hospital pharmaceuticals).
PCT A reference in the Invitation to Tender to allow Pharmaceuticals Cancer Treatments to be listed in Section B of the Pharmaceutical Schedule as part of PHARMAC’s Pharmaceutical Cancer Treatments project.
+ PHARMAC has been advised of the existence of a patent.
* There is no fully funded product available for this line item (in relation to community supply).
@ Additional Stock Pharmaceuticals (ASP) means a Pharmaceutical, marked with an “@”, for which the supplier of the successful Tender Bid would be required to hold additional stock.
# A rebate currently exists.

Medical Devices - IV infusion bags

Following discussions with a number of hospital pharmacists, PHARMAC has included a variety of empty IV infusion bags in the draft 2014/15 Invitation to Tender. PHARMAC would welcome specific feedback on the appropriateness of tendering these products, the suitability of the proposed line items, and the variety of proposed products.