Source: PHARMAC
When a medicine is no longer under patent, suppliers can sell a generic, often less expensive, version of that medicine. Once a year, we invite suppliers to bid to be the main suppliers of medicines that are no longer under patent. Depending on which supplier’s bid is successful, the funded brand of medicine could change.
The annual tender process kicks off in July, when we release consultation on a draft list of items that we are considering including in the upcoming tender.
We ask clinicians, people who use the medicines, and suppliers a range of questions, including whether or not the item should be included in the tender, and what we should consider when reviewing bids and product samples. We are keen to understand any support that might be needed if we were to change brands.
Once the consultation closes, we send the information to our Tender Clinical Advisory Committee, which is made up of doctors, pharmacists, nurses and other clinical specialists, for its input.
After we’ve considered their advice, we finalise the list of items to be included in the tender and issue an “Invitation to Tender” for these items. This invites suppliers to submit their commercial bids. The tender closes in December, and then we start evaluating the bids.
We then ask some suppliers to send us samples of the medicines they’re bidding to provide as the main supplier. We hold a two-day meeting of the Tender Clinical Advisory Committee in February or March, where Pharmac staff and committee members inspect labels, open packages, test creams, taste medicines, shake bottles and discuss what might work best.
Sometimes, the committee will identify usability issues, which we must consider as part of the bid assessment. A crucial step is identifying what information people prescribing, dispensing, and taking medicines would need to help them understand a potential change in the medicine’s brand.
Our goal is to ensure we provide enough support so people can feel reassured during a change.
We then assess the bid against our decision-making framework, the Factors for Consideration. Specifically, we evaluate whether:
- the supplier can meet demand and has a reliable supply record
- the brand is approved by Medsafe
- the price is sustainable and offers savings that can be reinvested into funding more medicines
- there are groups of people for whom a brand change may not be appropriate. If so, we consider what actions Pharmac can take to mitigate or prevent any negative impacts on these individuals and their families or whānau.
We announce these decisions throughout the year, at the end of every month.
