Consultation on proposed 2023/24 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 2023/24 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 proposed for the 2023/24 Invitation to Tender

• The key proposed change to the tender contract this year would allow Pharmac to accept tender bids for vials or ampoules for injectable formulations, in the same way as it currently allows acceptance of capsules or tablets for oral formulations. Pharmac may still have a preference for a vial or an ampoule, however it would be at Pharmac’s discretion to choose a vial or an ampoule if either of these presentations is stated in the line-item description.
• We have also included a section that would give Pharmac the ability to widen access during the tender period for any product.
• Key changes have been highlighted in yellow on the doument "draft 2023/24 Invitation to Tender including schedule two" [PDF, 542 KB].

New products

This year’s Invitation to Tender includes seven-line items that have not previously been included in the tender or other competitive process. These line items are as follows:

Key dates

Consultation on the 2023/24 Invitation to Tender

24 July 2023 – Consultation begins

21 August 2023 – Any alternative commercial proposals (ACPs) due

28 August 2023 – Consultation closes

August 2023 – Estimated negotiations for any ACPs being progressed

September 2023 –Tender Clinical Advisory Committee meets

September/October 2023 – Estimated consultation on any ACPs being progressed

Release of the 2023/24 Invitation to Tender

November 2023 – Final Invitation to Tender issued

December 2023 – Invitation to Tender closes

January 2024 – Tender Clinical Advisory Committee meets

We are considering requesting products and artwork earlier (prior to Christmas) to ensure that the resources are available for the Tender Clinical Advisory Committee meeting to help inform recommendations. We want to understand if an earlier timeline could be met and what the potential issues could be.

Unresolved tender bids from previous Invitations to Tender

We intend to review any unresolved tender bids from the 2020/21, 2021/22, and 2022/23 Invitations to Tender prior to issuing the 2023/24 Invitation to Tender. See Appendix One for all tenders we do not anticipate would be resolved before the end of July.

Other potential changes

Because the tender can result in substantial price reductions, it often means that savings made can be used to fund new medicines. The savings can also be used to fund changes to the tendered products. For example:

• if the product is currently partially funded, it would become fully funded if the tender was awarded
• the product could be added to the ‘stat’ dispensing list, which would mean that people could collect prescriptions dispensed as a three-month supply (rather than monthly)
• if funding criteria apply to a product (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. We might consult on this separately prior to making a decision

We are interested in your feedback on potential changes for the medicines we are tendering.

You can see the Pharmaceutical Schedule for all dispensing and funding restrictions on our website(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 list (gross) 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 line item listed in Schedule Two of the draft 2023/24 Invitation to Tender.
• ACPs may include more than one line item and may also include pharmaceuticals not listed in Schedule Two of the draft 2023/24 tender.
• ACPs should not include any items subject to an unresolved tender.
• ACPs may seek Pharmac’s agreement to defer tendering for a period of time for any pharmaceutical, whether or not it is listed in Schedule Two of the draft 2023/24 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 consultation.

ACPs are due by 4 pm (New Zealand Time), Monday 21 August 2023. 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’ funded usage data for the year ended 30 June 2022 for items included in the 2023/24 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.

Hauora Arotahi – Māori health areas of focus

Pharmac is continually working to develop and implement advances in Hauora Arotahi to support equitable health outcomes for Māori. Pharmac’s Māori health areas of focus, voiced by whānau Māori, are available on our website.

The draft 2023/24 Invitation to Tender includes treatments for mental health, heart health (such as medicines to treat high blood pressure and prevent stroke), respiratory health, and cancer (lung and breast), outlined in tables below.

Additional Special Terms

Additional Special Terms have been included in the draft 2023/24 Tender contract for somatropin injections. This clause would require any potential suppliers to offer education, training and support resources to patients and healthcare professionals, and related products required for the safe handling and use of the supplier’s somatropin product (such as associated devices, needles, needle clippers, sharps bins).

The full Additional Special Terms for somatropin can be found in the draft 2023/24 Tender contract on the Pharmac website. Any feedback on these Additional Special Terms would be useful to inform the final contract.

Electronic tender (eTender) system

The 2023/24 tender will be distributed via Pharmac’s electronic tendering portal (In-Tend).

The portal requires companies to register for a user account. Details of how to register will be distributed before we release the final 2023/24 Invitation to Tender. A ‘practice’ tender will be released for users who wish to familiarise themselves with the portal.

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

2021/22 Invitation to Tender

2022/23 Invitation to Tender