Long-term effect of tendering on prices of branded pharmaceutical products

Petrou, Panagiotis

doi:10.1016/j.hlpt.2015.10.006

Cited by 12 publications

(11 citation statements)

References 22 publications

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“…Third, the analysis shows that tenders designed to allow both manufacturers to bid can achieve a better price than direct negotiation procedures with only one manufacturer. That is in alignment with the previous analyses strengthening the importance of competition augmentation in tendering procedures even when the number of competitors is minimal [ 49 , 50 ]. This finding further highlights that economic sustainability of HPV vaccination requires the 2-valent vaccine to maintain a substantial market share, given that the 4-valent and 9-valent vaccines are produced from the same manufacturer [ 51 ].…”

Section: Discussionsupporting

confidence: 88%

“…Efforts implementing this theory and benefiting from economies of scales include the PAHO Revolving Fund and the Gulf Cooperation Council (GCC) [ 32 ]. Nonetheless, a caveat needs to be taken into account when considering this premise: achieving low prices via highly centralised procurements with long-lasting agreements runs the risk to erode market competition by forcing some competitors to withdraw from the market [ 46 – 49 ]. This unintended market failure may lead to a future price increase [ 46 – 49 ].…”

Section: Discussionmentioning

confidence: 99%

“…Nonetheless, a caveat needs to be taken into account when considering this premise: achieving low prices via highly centralised procurements with long-lasting agreements runs the risk to erode market competition by forcing some competitors to withdraw from the market [ 46 – 49 ]. This unintended market failure may lead to a future price increase [ 46 – 49 ]. Third, the analysis shows that tenders designed to allow both manufacturers to bid can achieve a better price than direct negotiation procedures with only one manufacturer.…”

Section: Discussionmentioning

confidence: 99%

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Pricing of HPV vaccines in European tender-based settings

2018

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Section: Discussionsupporting

confidence: 88%

Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

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Pricing of HPV vaccines in European tender-based settings

2018

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“…However, there is little ‘European’ agreement on best practices for tendering, each tender system is a ‘homebrew’ by the individual member state institutions [ 19 ]. Generally, the focus of the studies is on price management rather than health or other outcomes [ 20 , 21 ] and too little attention is paid to monitoring the success of the policies [ 22 ].…”

Section: Resultsmentioning

confidence: 99%

Shaping Pharmaceutical Tenders for Effectiveness and Sustainability in Countries with Expanding Healthcare Coverage

Maniadakis

Holtorf²,

Corrêa³

et al. 2018

Appl Health Econ Health Policy

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Policy makers in countries, aiming to build and expand their healthcare systems and coverage, need effective procedures to support the most efficient use of limited financial resources. Tendering is commonly deployed to minimize and fix the purchasing price for the contract duration, especially for off-patent pharmaceuticals. While tenders can reduce acquisition costs, they may also expose the healthcare systems to risks including drug shortages, quality trade-offs, and ultimately, compromised patient health outcomes. Careful planning is therefore required. The effectiveness and impact of tendering were examined in different healthcare settings to establish good tender practices and to develop guidance for tender stakeholders in countries with expanding healthcare coverage for the effective conduct. The literature was reviewed for tender practices and outcomes in all countries, and tender experts from one multi-national pharmaceutical company in 17 countries with expanding healthcare coverage were surveyed on current tender practices. Tendering is a common practice for multisource pharmaceuticals in most countries worldwide. However, countries with expanding healthcare coverage specifically are vulnerable to the risks of defective tendering practices. Risk factors include non-transparent tender practices, a lack of consistency, unclear tender award criteria, a focus on lowest price only, single-winner tendering, and generally, a lack of impact monitoring. If well planned, managed, and conducted, tenders can be advantageous. Countries with expanding healthcare coverage should approach tenders strategically to achieve the desired improvements in healthcare. The good tender practices derived from this study may guide policy makers and purchasers in countries with expanding healthcare coverage on how to expand access to healthcare at an affordable cost. These include the use of multiple selection criteria and performance monitoring. Plain Language Summary Decision makers in countries aiming to expand their healthcare systems must best use the limited money available for healthcare. Tendering is commonly deployed for pharmaceuticals produced by multiple manufacturers (so-called multisource pharmaceuticals), to choose the product with the lowest price. Through tenders, purchasers request offers from suppliers for the needed products.The ultimate purpose of our research was to develop a guidance on robust tender processes. Therefore, we reviewed the literature to examine the effectiveness and impact of current tendering practices. In addition, we conducted a survey among tender experts from one pharmaceutical company in 17 countries with expanding healthcare coverage.In both the survey and the literature review, we confirmed that worldwide, tendering is a common practice for multisource pharmaceuticals. However, defective tendering practices may increase the vulnerability for some risks including abuse due to intransparent processes, lack of consistency, unclear tender award criteria, a focus on lowest price only, singl...

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“…Discounts are usually undisclosed and not reflected in the final price in the public segment of the market. As such, these discounts cannot be captured in the price index [18][19].…”

Section: Datamentioning

confidence: 99%

Pharmaceutical price comparisons across the European Union and relative affordability in Cyprus

Petrou¹,

Vandoros

2016

Health Policy and Technology

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This paper performs price comparisons of branded pharmaceutical products in markets of eleven European Union countries. We follow a Laspeyres index approach, using Cyprus as the base country and analyse prices in the private and public markets and also consider biotechnology products separately. We find that Germany, Denmark and Austria demonstrate the highest pharmaceutical prices in the EU, followed by Cyprus. When adjusting for per capita income, Cyprus demonstrates the highest prices. Given that there is no universal health insurance in Cyprus, and that the country is facing a financial crisis, our findings underline possible affordability problems for patients. In order to remove barriers to access to medicines, pharmaceutical pricing regulation could be adjusted and price revisions should take place more frequently, and, most importantly, Cyprus must move in the direction of adopting universal health insurance.

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Long-term effect of tendering on prices of branded pharmaceutical products

Cited by 12 publications

References 22 publications

Pricing of HPV vaccines in European tender-based settings

Pricing of HPV vaccines in European tender-based settings

Shaping Pharmaceutical Tenders for Effectiveness and Sustainability in Countries with Expanding Healthcare Coverage

Pharmaceutical price comparisons across the European Union and relative affordability in Cyprus

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