Procurement & tendering process When a medicine is no longer under patent, other suppliers are able to sell a generic version of that medicine. This allows for competition and can lead to significant price reductions. This competition can take place in PHARMAC’s annual Invitation to Tender (ITT). The annual Tender is key in helping PHARMAC keep up with increasing demand for medicines they fund, and for new and innovative medicines. This process creates savings of $30-50 million every year for PHARMAC. This money is reinvested to get more medicines for more people through new investments or making existing medicines available to even more people. PHARMAC’s annual tender has now developed into a process often involving over 500 lineitems. It is a quick and efficient way to secure supply and drive value from pharmaceutical markets. Where savings are achieved through the tender, PHARMAC is able to: • Manage expenditure in growing medicine markets; and • Free up funding so that they can invest in new medicines This video below explains why the Tender is an important part of PHARMAC’s toolkit to help New Zealanders live well, get well and stay well. See video on Youtube: https://youtu.be/nJcsgkmRRww
Source: [23] Procurement & tendering process
Healthcare & Pharmaceutical Landscape of NZ
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