Consultation on proposed 2022/23 Invitation to Tender: For industry

Medicines Tender Closes 25 Aug

Te Pātaka Whaioranga – Pharmac is seeking feedback from pharmaceutical suppliers, distributors, wholesalers, and other interested parties on the contents of the 2022/23 Invitation to Tender.

We are seeking feedback on the draft 2022/23 tender. This is still under development and may change before it is taken to the Pharmac Board or its Delegate for approval and subsequently issued. In particular, we are seeking:

  • feedback on the draft tender list and draft tender agreement
  • commercial proposals as an alternative to including a product in the 2022/23 Invitation to Tender.

We are also seeking feedback from healthcare professionals and people who take medicines.

Depending on the extent of any changes, Pharmac does not intend to send out further drafts for consultation at this stage.

Suppliers’ guide to Pharmac’s annual tender process

Download a PDF version of this consultation

Consultation closes 5pm (New Zealand standard time) Thursday 25 August 2022

Email feedback to tender@pharmac.govt.nz

All feedback received before the closing date will be considered by Pharmac’s Board or its delegate before finalising the 2022/23 Invitation to Tender.

Your feedback may be shared

Feedback we receive is subject to the Official Information Act 1982 (OIA). 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.

Key changes this tender

This year we have restructured and updated the terms within the invitation to tender document, due to the health sector reforms, to streamline the schedules, to have succinct contract terms and to focus on the contractual relationship. The document will also be more consistent with our standard medicine listing agreement template, which is also being updated. Key points are as follows:

Structural Changes

  • Schedules 4 – 6 have been combined into one schedule, as Schedule 4, which sets out the contract terms for both community and hospital supply.
  • Schedule 7 is now Schedule 5, in the event any additional special terms are required for a pharmaceutical.

Health sector reform changes

  • References to DHBs have been substituted with a reference to Te Whatu Ora.
  • References to the New Zealand Public Health and Disability Act 2000 have been removed.

Contract terms

  • Substantively the contract terms are similar to previous tenders.
  • Terms included in previous tenders have been combined, reframed and redrafted to logically fit into sections for ease of reference.
  • New reporting terms have been added, which set out the mechanism between the parties to manage supply issues.
  • Additional terms have been added, for example to clarify the status of the Agreement in the event a pharmaceutical is delisted.

We will be hosting a supplier briefing session on Thursday 18 August 2022 to further discuss the changes to the Pharmac terms and conditions. Please submit any topics you would like covered and/or any questions you have by Thursday 11 August 2022 to tender@pharmac.govt.nz.

New products

This year’s Invitation to Tender includes six line items that have not previously been included in the tender or other competitive process.

  • Cyproterone acetate with ethinyloestradiol – Tab 2 mg with ethinyloestradiol 35 mcg
  • Macrogol 3350 with sodium sulfate, sodium chloride, potassium chloride, sodium ascorbate and ascorbic acid – powder for oral soln
  • Metaraminol tartrate – Inj 0.5 mg per ml, 5 ml
  • Metaraminol tartrate – Inj 0.5 mg per ml, 20 ml
  • Metaraminol tartrate – Inj 1 mg per ml, 10 ml
  • Triamcinolone acetonide – Inj 40 mg per ml, 1 ml preservative-free

Other changes

As we indicated last year, we are implementing stronger packaging preferences for medicines pack sizes and packaging types to support our focus on environmental sustainability. This year we have included such preferences for 33 products. Details are included alongside affected products in Appendix Two.

Key dates

Consultation on the 2022/23 Invitation to Tender (ITT)

  • 21 July 2022 – Consultation begins
  • 19 August 2022 – Any alternative commercial proposals (ACPs) due.
  • 11 August 2022 – Deadline for submission of questions for supplier briefing session
  • 18 August 2022 – Supplier briefing session
  • 25 August 2022 – Consultation closes
  • August 2022 – Negotiations about ACPs begin
  • September 2022 –Tender Clinical Advisory Committee meets
  • September/October 2022 – Consultation on any ACPs begin

Release of the 2022/23 Invitation to Tender

  • November 2022 – Final Invitation to Tender (ITT) issued
  • December 2022 – ITT closes
  • January 2023 – Tender Clinical Advisory Committee meets

Unresolved tender bids

We intend to review any unresolved tender bids from the 2019/20 Invitation to Tender (ITT), 2020/21 ITT, and 2021/22 ITT prior to issuing the 2022/23 tender. See Appendix One below.

Consequential changes

Because the tender can result in substantial price reductions, it often means that savings made can be used to fund new medicines. However, these price reductions can also lead to changes to the tendered products.

When awarding a tender, we might choose to:

  • add products to the ‘stat’ dispensing list, which allows for people to have their prescriptions filled all at once rather than in monthly lots
  • remove or change any funding restrictions (for example, a Special Authority restriction, endorsement, or prescriber-type restriction), we might change or remove funding restrictions to enable more people to use it. Further consultation on this may occur later.

We are interested in your feedback on the clinical appropriateness of these potential changes. You can see the Pharmaceutical Schedule for all dispensing and funding restrictions: schedule.pharmac.govt.nz/latest/Schedule.pdf(external link)

Alternative commercial proposals

Pharmac is open to any alternative commercial proposals (ACPs) to tendering that you may wish to submit. ACPs may involve offering savings:

  • on one set of pharmaceuticals in return for Pharmac agreeing to defer tendering on another group of pharmaceuticals for a period
  • by way of rebates rather than through price reductions.

The following points apply to ACPs for both the community and Te Whatu Ora - Health New Zealand hospital markets.

  • ACPs should include at least one item listed in Schedule Two of the draft 2022/23 tender.
  • ACPs may include more than one line item and may include pharmaceuticals not listed in Schedule Two of the draft 2022/23 tender.
  • ACPs should not include any items subject to an unresolved 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 2022/23 tender.
  • ACPs may not propose awarding Principal Supply Status in the community or Te Whatu Ora Hospitals, or any other form of sole or exclusive supply.
  • 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 4 pm (New Zealand Time) Friday 19 August 2022. 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 the year ended 30 June 2022 for items included in the 2022/23 tender. These volumes are approximate and indicative only. Pharmac makes no representation as to the accuracy of these figures or the level of sales or likely sales of any tender item.

Chemical

Total usage (mg)

Bleomycin Sulphate

15,163,103*

Cisplatin

325,294

Gemcitabine hydrochloride

8,924,633

Melphalan

71,550

Methotrexate

5,282,092

Paclitaxel

1,597,326

*Usage shown in IU (international units)

Electronic tender (eTender) system

The 2022/23 tender will be distributed via Pharmac’s electronic tendering portal.

The portal requires companies to register for a user account. Details of how to register will be distributed before we release the final 2022/23 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 emailing tender@pharmac.govt.nz

Appendix One – Unresolved tenders

2019/20 Invitation to Tender

Chemical Name

Line Item

Exemestane

Tab 25 mg

Docetaxel

Inj 80 mg

Ephedrine

Inj 3 mg per ml, 10 ml prefilled syringe

Exemestane

Tab 25 mg

Noradrenaline

Inj 0.06 mg per ml, 50 ml vial

Noradrenaline

Inj 0.1 mg per ml, 50 ml syringe

Noradrenaline

Inj 0.12 mg per ml, 50 ml vial


2020/21 Invitation to Tender

Chemical Name

Line Item

Baclofen

Tab 10 mg

Brimonidine tartrate with timolol maleate

Eye drops 0.2% with timolol maleate 0.5%

Carboplatin

Inj 10 mg per ml, 45 ml

Chlorhexidine gluconate

Mouthwash 0.2%

Dapsone

Tab 100 mg

Ethambutol hydrochloride

Tab 400 mg

Felodipine

Tab long-acting 2.5 mg

Fenofibrate

Cap/tab 48 mg

Fenofibrate

Cap/tab 145 mg

Hydroxychloroquine sulphate

Tab 200 mg

Lanreotide

Inj 60 mg per 0.5 ml, 0.5 ml syringe

Lanreotide

Inj 90 mg per 0.5 ml, 0.5 ml syringe

Lanreotide

Inj 120 mg per 0.5 ml, 0.5 ml syringe

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

Midodrine

Tab 2.5 mg

Midodrine

Tab 5 mg

Noradrenaline

Inj 0.06 mg per ml, 50 ml syringe

Noradrenaline

Inj 0.1 mg per ml, 100 ml bag

Noradrenaline

Inj 0.12 mg per ml, 100 ml bag

Noradrenaline

Inj 0.16 mg per ml, 50 ml syringe

Oxaliplatin

Inj 100 mg

Prednisolone

Rectal foam 10-20%

Ramipril

Cap/tab 1.25 mg

Ramipril

Cap/tab 2.5 mg

Ramipril

Cap/tab 5 mg

Ramipril

Cap/tab 10 mg

Terlipressin

Inj 0.2 mg per ml, 5 ml

Terlipressin

Inj 1 mg per 8.5 ml ampoule

Vecuronium

Inj 10 mg

2021/22 Invitation to Tender

Chemical Name

Line Item

Acetazolamide

Tab 250 mg

Adrenaline autoinjector

Inj 0.15 mg er 0.3 ml

Adrenaline autoinjector

Inj 0.3 mg per 0.3 ml

Amisulpride

Tab 100 mg

Amisulpride

Tab 200 mg

Amisulpride

Tab 400 mg

Amoxicillin

Cap 250 mg

Amoxicillin

Cap 500 mg

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

Atomoxetine

Cap 10 mg

Atomoxetine

Cap 18 mg

Atomoxetine

Cap 25 mg

Atomoxetine

Cap 40 mg

Atomoxetine

Cap 60 mg

Atomoxetine

Cap 80 mg

Budesonide

Cap 3 mg controlled release

Capecitabine

Tab 150 mg

Capecitabine

Tab 500 mg

Ceftriaxone sodium

Inj 500 mg

Ceftriaxone sodium

Inj 1 g

Ceftriaxone sodium

Inj 2 g

Cetirizine hydrochloride

Tab 10 mg

Cetomacrogol with glycerol

Crm 90% with glycerol 10%, 500 ml

Cetomacrogol with glycerol

Crm 90% with glycerol 10, 1,000 ml

Cetomacrogol with glycerol

Crm 90% with glycerol 10%, 100 g

Chlortalidone [Chlothalidone]

Tab 25 mg

Clindamycin

Cap hydrochloride 150 mh

Clindamycin

Inj 150 mg per ml, 4 ml ampoule

Clobazam

Liq

Coal tar

Soln BP

Codeine phosphate

Tab 15 mg

Codeine phosphate

Tab 30 mg

Codeine phosphate

Tab 60 mg

Compound electrolytes with glucose [dextrose]

Soln with electrolytes

Compound hydroxybenzoate

Soln

Daptomycin

Inj 350 – 500 mg

Dexamfetamine sulfate

Tab 5 mg

Domperidone

Tab 10 mg

Enalapril

Tab 5 mg

Enalapril

Tab 10 mg

Enalapril

Tab 20 mg

Ertapenem

Inj 1 g vial

Ethinyloestradiol with levonorgestrel

Tab 20 mcg with levonorgestrel 100 mcg and 7 inert tabs

Ethinyloestradoil with levonorgestrel

Tab 30 mcg with levonorgestrel 150 mcg and 7 inert tabs

Fentanyl

Inj 10 mcg per ml, 100 ml premixed bag

Fluoxetine hydrochloride

Cap 20 mg

Fluoxetine hydrochloride

Tab dispersible 20 mg, scored

Glycerin with sodium saccharin

Suspension

Glycerin with sucrose

Suspension

Haloperidol

Inj 5 mg per ml, 1 ml

Hydrocortisone

Crm 1% (pack size greater than 100 g)

Levosimendan

Inj 2.5 mg per ml, 5 ml

Medroxyprogesterone acetate

Inj long-acting 150 mg per ml, 1 ml syringe

Methyl hydroxybenzoate

Powder

Methylcellulose

Powder

Methylcellulose with glycerin and sodium saccharin

Suspension

Nicorandil

Tab 10 mg

Nicorandil

Tab 20 mg

Nimodipine

Inj 0.2 mg per ml, 50 ml

Noradrenaline

Inj 1 mg per ml, 4 ml ampoule

Nortriptyline hydrochloride

Tab 10 mg

Nortriptyline hydrochloride

Tab 25 mg

Ondansetron

Tab 4 mg

Ondansetron

Tab 8 mg

Ondansetron hydrochloride

Inj 2 mg per ml, 2 ml

Ondansetron hydrochloride

Inj 2 mg per ml, 4 ml

Oxybutynin

Tab 5 mg

Pantoprazole

Tab EC 20 mg

Pantoprazole

Tab EC 40 mg

Pemetrexed

Inj 100 mg

Pemetrexed

Inj 500 mg

Permethrin

Crm 5%

Pethidine hydrochloride

Tab 50 mg

Phenobarbitone

Tab 15 mg

Phenobarbitone

Tab 30 mg

Piperacillin with tazobactam

Inj 4 mg with tazobactam 500 mg

Posaconazole

Oral liq 40 mg per ml

Posaconazole

Tab modified-release 100 mg

Progesterone (current access)

Cap 100 mg

Progesterone (widened access)

Cap 100 mg

Pyridostigmine bromide

Tab 60 mg

Risedronate sodium

Tab 35 mg

Risperidone

Inj 25 mg

Risperidone

Inj 37.5 mg

Risperidone

Inj 50 mg

Sertraline

Tab 50 mg

Sertraline

Tab 100 mg

Sodium bicarbonate

Powder BP

Sodium hyaluronate [hyaluronic acid]

Inj 30 mg per ml

Sumatriptan

Inj 12 mg per ml, 0.5 ml

Syrup (pharmaceutical grad)

Liq

Tenecteplase

Inj 50 mg

Teriparatide (current access)

Inj 250 mcg per ml

Teriparatide (widened access)

Inj 250 mcg per ml

Thiotepa

Inj 15 mg

Thiotepa

Inj 100 mg

Tranylcypromine sulphate

Tab 10 mg

Trientine

Tab 150 mg

Trientine

Tab 250 – 300 mg

Vinorelbine

Cap 20 mg

Vinorelbine

Cap 30 mg

Vinorelbine

Cap 80 mg

Voriconazole

Inj 200 mg vial

Water for injection

Purified for inj, 10 ml

Zinc and castor oil

Oint (pack size greater than or equal to 500 g)

Zinc and castor oil

Oint (pack size 50 g or less)