Denmark, Iceland, & Norway Conclude First Joint Nordic Tendering

Country: DENMARKICELANDNORWAY | Region: EUROPENORDICS | Type: Tender | Keywords: #generics #jointprocurement #nordictendering #patentexpiry #suppliers

PRICENTRIC BRIEF:

  • The first joint Nordic tendering intended to combine Denmark, Iceland, and Norway into “one large, attractive Nordic market for selected hospital pharmaceuticals,” particularly older medicines with expired patents that have been on the market for some time and have little competition
  • Bente Hayes, Procurement Director at Norge Sykenusinnkjop HF, Divisjon Legemidler, explained that the joint Nordic tendering procedure made these markets more appealing and in the long term, being able to attract many players within the generics market will have a great impact for supplies of pharmaceuticals, specifically in Norway
  • While the three countries differ on organizational, regulatory, and logistical procedures, it was possible to find a common solution; however, Iceland turned out to have particular challenges because several suppliers announced that it would not be financially feasible to apply for marketing authorization for such a small market, and suppliers that already had marketing authorization for their medicines said that, because of special agreements with agents in Iceland, they could not participate in the tendering procedure
  • Going forward, Denmark, Iceland, and Norway will work to include other criteria than just price in future tendering procedures in order to make the Nordic market more attractive

 

THE DETAILS

COPENHAGEN, Denmark – All the agreements for the first joint Nordic tendering originally put out to tender in April 2019 are now in place, announced Denmark’s AMGROS.

The first joint Nordic tendering intended to combine Denmark, Iceland, and Norway into “one large, attractive Nordic market for selected hospital pharmaceuticals,” particularly older medicines with expired patents that have been on the market for some time and have little competition.

Bente Hayes, Procurement Director at Norge Sykenusinnkjop HF, Divisjon Legemidler, said, “In Norway, we’ve seen challenges with regard to attracting tenders from suppliers of generic pharmaceuticals. With this joint Nordic tendering procedure, we’ve actually managed to attract tenders here too. This is very positive, and in the long term, being able to attract many players within the generics market will have a great impact for supplies of pharmaceuticals in Norway. In order to make the Nordic market more attractive, we will work to include other criteria than just price in future tendering procedures.”

The first joint Nordic tendering procedure took one year and two months because the participating countries experienced many bumps along the way, including political and legal impediments in carrying out cross-border tendering procedures.

Back in September 2018, the Ministers of Health from Denmark and Norway signed a common agreement of intent, followed in April 2019 by Icelandic’s Minister of Health. While the three countries differ on organizational, regulatory, and logistical procedures, it was possible to find a common solution.

Iceland turned out to have particular challenges because several suppliers announced that it would not be financially feasible to apply for marketing authorization for such a small market,  and suppliers that already had marketing authorization for their medicines said that, because of special agreements with agents in Iceland, they could not participate in the tendering procedure.

Hulda Harðardóttir, Project manager for Pharmaceutical Procurement, Procurement Department Landspítali, Iceland, said, “The three countries therefore decided that suppliers could choose for themselves whether to cover Iceland in their tenders. This meant that Iceland only received bids from one company that already had marketing authorization in Iceland. Nevertheless, this first joint tendering procedure between the three Nordic countries has been a positive learning experience for Iceland, and we’ve started to review all the obstacles, we have met.”

Suppliers also had many considerations and comments, so they were involved from the beginning and throughout the development of the final tender materials.

Flemming Sonne, AMGROS’ CEO, said, “There is no doubt that it has also been a challenge for our suppliers to be ready to take part in our joint Nordic tendering procedures…with their commitment and important input, suppliers have helped to improve both the process and the final tender materials; and they’ve helped us get better.”

 

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