Germany’s AOK Opens Tender to Secure 119 APIs Worth 2 Billion Euros Per Year

BERLIN, Germany – The largest statutory health fund of Germany covering 30% of the total population, AOK has launched a tender for nationwide drug discount contracts that is comprised of 120 lots with a total of 119 active pharmaceutical ingredients (APIs).

All in all, the tender includes 119 APIs in 120 areas, with 22 APIs set to be awarded in a three-partner model. The contract will last from June 1, 2021 until May 31, 2023, with the AOK total sales volume amounting to around 2 billion euros per year (pharmacy sales price).

The offer ends on September 22, 2020.

The tender intends to, at the same time, secure a three-months’ supply of medicines to protect against delays or shortages. However, the inventory may only be tapped in the last quarter of the contract.

According to Johannes Bauernfeind, CEO of AOK and Chief Negotiator of Drug Discount Contracts, “Pharmaceutical discount contracts are strong and, in this form, currently unique management tool. With the changed inventory, production and environmental requirements in the context of the current AOK tender, the contracts are being developed further in the direction of security of supply.

“A tender for five antibiotic active ingredients is already in preparation for this very specific market. In this tender, security of supply and compliance with environmental and social standards are to be further strengthened.”

The tender reflects the European-level goal of securing supply of important medicines to Europe, per the Germany European Union (EU) Council Presidency mission. The coronavirus pandemic exposed vulnerabilities in the supply chain, sparking discussions in Europe on how to recover production to prevent issues in the future.

The contracts offered by AOK intend to solidify supply, as providers of the medicines open for tender are obliged to ensure products are delivered, with full regard to safety.

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