Cost-Containment Mechanisms for Essential Medicines, Including Antiretrovirals, in China - Health Economics and Drugs Series No. 013
(2003; 30 pages) [French] [Spanish] View the PDF document
Table of Contents
View the documentAcknowledgements
View the documentTerms of reference
Close this folderIntroduction
View the documentCost-effective medicine selection
View the documentPrice information
View the documentInternational open tendering
View the documentVoluntary discount agreements
View the documentVoluntary licensing
View the documentCompulsory licensing
View the documentLocal state production
View the documentGovernment price controls
View the documentReduction of import and other taxes for essential medicines, and rational dispensing practices
View the documentPublic investment in R & D for new medicines: A mid- to long-term strategy
View the documentBackground and experiences with voluntary agreements
View the documentCountry rights to be protected in voluntary agreements for reduction of prices of medicines
Open this folder and view contentsCompulsory licensing - practical aspects and procedures
View the documentConcluding comments
View the documentList of persons contacted
View the documentFurther reading

International open tendering

Open tender is a formal procedure by which quotations are invited from any manufacturer or manufacturer’s representative on a local or worldwide basis, subject to the terms and conditions specified in the tender invitation. In medicines procurement, the use of competitive international tendering has indisputable economic advantages and is one of the classic cost-containment mechanisms. According to the experiences of many countries, international tendering reduces prices by 40 to 50 %2.

2 Quick et al. Managing Drug Supply. Kumarian Press, 1997.

However, the economic advantages of this mechanism apply mainly to multi-source products where competition exists and not for patented medicines. Open tendering is not an option for medicines, such as the majority of ARVs, that are protected by patents.

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