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

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.

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

2020/21 Invitation to Tender

2021/22 Invitation to Tender