Due to International Procurements Ukraine Managed to Reduce Prices on Medicines Purchased by the Ministry of Health in 2015

Due to International Procurements Ukraine Managed to Reduce Prices on Medicines Purchased by the Ministry of Health in 2015

The United Nations Development Programme (UNDP) procured pediatric hemophilia medicines saving USD 1.4 million over the Ministry of Healthcare 2014 pricing and saved USD 302 thousand due to effective procurement of pharmaceuticals for treatment of orphan diseases.

Pursuant to the documents made public by UNDP the economy during procurements of pediatric hemophilia medicines raised USD 1.4 million comparing to the previous year. All the medications procured by the international organization were cheaper than the same medications purchased by the MoH in 2014.

In addition, there is a similar trend of reducing prices on medicines for adult hemophilia procured this year by the Ministry of Health of Ukraine without the involvement of international organizations. It was found that providers were forced to participate in Ministry of Health in 2015 almost with the same pricing proposal as was offered by the United Nations Development Programme. For example, the drug FEIBA 500 U and 1000 U (made by Baxter AG, Austria) in 2014 costed USD 2.1331 for MoH. This year the Ministry of Health has procured it for USD 1.2620 and UNDP — paying USD 1.2350. Coagulation factor VIII (vial, syringe, ampule, with dosage — 500 IU) in 2014 was procured by the Ministry of Health for USD 0.3967, and in 2015 it costed USD 0.2441, while the price for UNDP was USD 0.2200.

Olga Stefanyshyna, the Executive Director of the Charitable Foundation «Patients of Ukraine» asserts that «such savings are yet more proof of the effectiveness of involving international organizations into procurement of medicines in Ukraine». She states that «the saved costs, which theretofore were pocketed by corruptible officials, mean the additional medications and chance of life for the Ukrainian patients.»

Almost half of the medicines procured by the United Nations Development Programme are more than 20% cheaper as compared to the prices the Ministry of Health (MoH) paid in 2014. The REFACTO medicine’s price (Human blood coagulation factor VIII (recombinant) 250 IU) is by 40% lower:

MedicinesPrice paid by MoH in 2014 (VAT exclusive), US DollarsPrice paid by UNDP (logistics expenses andUNDP fee inclusive), US Dollars
Human blood coagulation factor VIII (recombinant) 250 IU$111,7635$66,8758
Human blood coagulation factor VIII (recombinant) 500 IU$178,2356$133,7516
Eptacog alfa(recombinant factor of human blood coagulation VIIа*) 2 mg (100 KIU or 100 000 МО)$2 409,9011$1 811,7750
Eptacog alfa (recombinant factor of human blood coagulation VIIа*) 5 mg, (250 KIU or 250 000 IU)$5 946,7624$4 529,4375
Human blood coagulation factor VIII and von Willebrand factor (VWF) *** 500 IU$289,2942$223,8075
Human blood coagulation factor VIII (plasma-derived) 500 IU$147,5675$117,2325

Also, the pharmaceutical manufacturers directly participated in the tenders for the first time in the history of the medicines procurement for children with hemophilia. Total 5 companies won the tender: 3 Ukrainian and 2 foreign companies.

The total amount of the contracts for 15 items made up USD 7,302,885.88 including logistics and the service fee of the organization.

In total, the state allocated UAH 162,292,000 (USD 7,310,450.45) for treating pediatric hemophilia and the von Willebrand disease. This amount in Dollar equivalent is 60% larger than that allocated by the state for treating children with hemophilia in previous year.

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Besides, in 2015 the State for the first time allocated UAH 20,000,000 (USD 900,900) for the orphan medicines procurement. In total, 5 medicines for the overall amount of USD 598,749.62 including logistics and the service fee of the organization were procured. The United Nations Development Programme succeeded in saving USD 302,150.38. So, these funds will be used for additional procurement of the medicines necessary for the patients with orphan diseases. All the tenders were won exclusively by the manufacturing companies.

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For information:

On October 27, 2015 the Ministry of Health of Ukraine (MoH) and the United Nations Development Programme (UNDP) in Ukraine signed the Agreement on the procurement of pharmaceuticals and other healthcare products for diagnosis and treatment of tuberculosis, HIV-infection diagnosis, treatment of children with hemophilia of A or B type or with the von Willebrand disease as well as for medical care of children with chronic viral hepatitis B and C and orphan diseases.

On October 3, 2015 the UNDP received UAH 620,070,700 tranche, of which UAH 162,292,000 were intended for procuring of medicinal products for children with hemophilia of A and B type or with the von Willebrand disease (USD 7,310,450.45 in US Dollar equivalent).

On December 29, 2015 the United Nations Development Programme (UNDP) declared the tender for procuring pharmaceuticals for children with hemophilia A and B or the with von Willebrand disease to be opened. The tender was closed on February 7, 2016.

The United Nations Development Programme (UNDP) has entered into contracts with five companies supplying medicines for children with haemophilia to Ukraine. The total amount of the signed contracts, under which 15 pharmaceuticals will be procured, made up USD 6,955,129.41 including logistics.

Three Ukrainian intermediary companies Link-Medical Ltd., Liudmyla-Pharm Ltd., Kyiv Regional Pharmaceutical Enterprise Ltd. and 2 foreign companies: pharmaceutical manufacturer from Denmark Novo Nordisk A/S Company and Latvian distributor Magnipharma Ltd. have become tender winners.

UNDP has entered into contracts with three foreign companies which will provide Ukraine with the orphan disease medicines: Genzyme Europe BV (Netherlands), Swedish Orphan Biovitrum AB (SOBI) (Sweden) and BioMarin International Ltd (USA).

Contact person: Aliona Romaniuk, 050 335 53 01, aliona.r@patients.org.ua

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