Letting criteria other than price decide can ensure antibiotic deliveries – Anbud365
Send article by e-mail
Print article
Other criteria for awarding the contract and price should determine who wins the competition, and suppliers of antibiotics to primary care should be given a revenue guarantee. These proposals in a report from the Directorate of Health are now brought to light by the supplier organization Farma Norge. Noe production of antibiotics in this country, either in new or existing facilities, will not occur in 2023, but to ensure the necessary supply of antibiotics, it is necessary to think anew, believes the supplier association.
In August 2020, the Directorate of Health was tasked by the Ministry of Health and Care to lead the work on a feasibility study for industrial antibiotic production, in collaboration with the Norwegian Medicines Agency, the regional health organisations, industry and other relevant public and private actors. The report “Feasibility study for antibiotic production” came in March this year, but the Ministry of Health and Care has decided that the proposals linked to the industrial production of antibiotics must not be implemented next year.
In Dagens Medisin, the interest organization Farma Norge presents some measures from reports to assessment when new production facilities and use of existing ones are not relevant. Farma Norge shall represent the part of the pharmaceutical industry that supplies generic and biosimilar medicines in Norway. Today, this type of medicine accounts for more than half of medicine use in Norway.
Criteria other than price
The one measure the supplier organization highlights from the report is that the price of the medicines in a tender must be the same as the pharmacies’ maximum purchase price. Then other criteria for awarding the contract will determine who wins the competition. Current criteria can be user-friendly 15%, common Nordic packaging 25%, supplier stock beyond the minimum 30% and environmental requirements: 30%.
And two or three tender winners may be relevant, to ensure the necessary drug supply. I add to agreement periods which can be extended, e.g. four years plus an option for further years. According to Farma Norge, they can ensure safe deliveries and attract more new providers to Norway.
The joint antibiotic tender that Norway currently collaborates with Denmark and Iceland on should be extended to e.g. to get individual regions in Finland and/or Sweden.
Income guarantee
An income guarantee for suppliers of antibiotics to the primary healthcare service is another proposal from the report that wins consultation with Farma Norge. This means that the supplier gets a guarantee of an income that is independent of volume. Sweden has such a system. This could be adapted to Norwegian and Nordic needs, says the report.
Sweden guarantees an annual income of 4 million per antibiotic, which is significantly higher and annual sales forecast for the drug in Sweden. Purchasing and reimbursement of these antibiotics will proceed as usual. Status is settled for agreement periods and the difference between sales and guarantee sum is paid from a separate government funding source. If sales exceed 4 million, the holder of the marketing authorization keeps the profit and is paid a bonus for availability. The purpose is to give the income guarantee a higher and more predictable reward and what income is based on turnover at given unit prices gives. Due to the revenue guarantee, Sweden has achieved the best access to new antibiotics in Europe (after the UK).
A price guarantee is a safe tool that you have experience from in the past, i.a. on vaccines, and the report shows that a price guarantee scheme can cost between 57 and 70 million per year for the state.