2017/18 invitation to tender (suppliers)

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 22^nd 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.

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:

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

2016/17 Invitation to Tender

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

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)