Latest Recommendations for Medicine Procurement

Introduction

The European Federation of Pharmaceutical Industries and Associations (EFPIA) has recently published a white paper addressing key challenges in medicine procurement within the EU and UK. This white paper emphasises the need for effective and sustainable procurement practices that can deliver high-quality medicines to patients in appropriate quantities and at the right time.

Background on Tendering Practices

Tendering processes in pharmaceuticals play a crucial role in determining how medicines are procured and distributed. These processes, however, have been plagued by various issues that affect competition and limit access to essential medications. A recent EFPIA survey highlighted seven anomalies in national tendering practices in the EU & UK that harm competition and potentially limit patients’ access to medicines.

EFPIA’s White Paper Overview

EFPIA’s white paper, published on February 10, 2022, presents a sector-specific contribution to the broader debate on the efficacy of the EU procurement rules. It aims to improve not only the formal public procurement procedures but also the informal tendering processes increasingly employed outside the confines of Directive 2014/24/EU.

The Ten Recommendations

1.Transparency in Procurement Processes: Advocates for clearer and more open procedures to enhance fairness.
2. Balancing Cost with Quality: Proposes evaluating tenders based on both price and quality.
3. Long-Term Agreements: Suggests longer contracts to ensure stable supply and predictability for manufacturers.
4. Risk Mitigation Strategies: Recommends measures to prevent drug shortages, including contingency plans.
5. Incentivising Innovation: Encourages mechanisms to reward and promote the development of new treatments.
6. Sustainable Pricing Models: Calls for pricing that reflects the value of medicines while ensuring accessibility.
7. Collaboration with Stakeholders: Stresses the importance of involving all relevant parties in the procurement process.
8. Flexibility in Contracts: Advises adapting contracts as new treatments become available or needs change.
9. Streamlined Administrative Processes: Recommends reducing bureaucracy in the procurement process.
10. Regular Monitoring and Review: Urges ongoing assessment of procurement practices for effectiveness.

Expanded Insights

EFPIA’s recommendations focus on three distinct types of public procurement rules and practices. These include traditional EU public procurement rules, the 2014 Joint Procurement Agreement, and informal tendering processes. The recommendations seek to enhance efficiency, bolster fair competition, and address flaws revealed in market feedback obtained from a survey of tendering practices in 18 countries across the EU and the UK.

Impact on Healthcare and Industry

Implementing these recommendations could lead to more affordable medication prices, fostering accessibility and stimulating growth in the pharmaceutical sector. Furthermore, encouraging innovation could result in the development of new, more effective treatments, significantly improving patient outcomes.

Conclusion

EFPIA’s recommendations offer a roadmap for enhancing medicine procurement practices in the EU and UK, aiming to improve access to quality medicines and foster a more dynamic pharmaceutical sector. While challenges in implementation exist, the potential benefits for healthcare delivery and industry growth are substantial.

In this context, platforms like Vamstar’s could play a crucial role. Vamstar, with its advanced digital procurement solutions, can support the adoption of these recommendations by providing a more efficient, transparent, and data-driven approach to procurement. Its technology could facilitate better collaboration among stakeholders, streamline the procurement process, and offer insights into market trends and supplier performance.

This aligns perfectly with EFPIA’s call for improved procedures and increased transparency in the tendering process. By leveraging such innovative platforms, stakeholders can work together more effectively to ensure a healthcare system that not only meets the needs of its patients but also aligns with the resilience and growth goals of the EU.