UNICEF’s Procurement of Essential Medicines

Jan Komrska

Essential Medicines and Nutrition Unit

UNICEF Supply Division

Meeting of WHO Prequalification Programme with European manufacturers and EU marketing authorisation holders

Copenhagen, November 2009

Meeting of WHO PQP with European manufacturers and EU marketing authorisation holders, Copenhagen, November 20092 |

What is the role of Supply Division?What is the role of Supply Division?

Oversee UNICEF’s global procurement and logistics operation.

Procure supplies on behalf of UNICEF and Procurement Services partners

Ensure that high quality, good value supplies reach children and their families quickly.

Maintain the highest ethical standards for procurement.

Provide technical support to UNICEF offices and Procurement Services partners globally. Share procurement know-how with development partners.

Innovate to find ever-better supply solutions for children.

Meeting of WHO PQP with European manufacturers and EU marketing authorisation holders, Copenhagen, November 20093 |

Why do we buy pharmaceutcals?Why do we buy pharmaceutcals?

2008: 8.8 million

2007: 9.2 million

1990: 12.7 million

Sierra Leone – 270

Angola – 260

Afghanistan – 257

Niger – 253

Liberia – 235

Guinea-Bissau – 234

Mali – 217

Chad – 209

Equatorial Guinea – 206

DR Congo – 205

Acute respiratory infections Diarrhoea Measles Malaria Malnutrition

Under 5 Mortality

Meeting of WHO PQP with European manufacturers and EU marketing authorisation holders, Copenhagen, November 20094 |

UNICEF Strategic ProductsUNICEF Strategic Products

ORS, new formula, 1L sachet Zinc 20mg tablets Albendazole tablets 400mgMebendazole 100mg tabs & 500mg tabts Amoxicillin 250mg capsAmoxicillin pwd. for oral sus. 125mg/5ml, 100ml bottleSulfameth.+ trimeth. 100mg+20mg tabs & 800mg+160mg tabsSulfameth.+ trimeth. pwd for o.susp. 200mg+40mg/5ml, 100mlFerrous fum + folic acid 60mg+0.4mg tabs Ferrous salt, equivalent to 60mg iron tabs Folic acid 5mg tabs Micronutrient tablets Multiple micronutrient powder, sachet/PAC-30Retinol (Vit.A) 100,000 IU & 200,000 IU soft gelatin caps

UNICEF Logistics Network and Hubs Setup

UNICEF Logistics Network and Hubs Setup

Meeting of WHO PQP with European manufacturers and EU marketing authorisation holders, Copenhagen, November 20096 |

Principles of public procurement:

–Fairness–Transparency–Equal treatment–Best value for money

Registration of the product:

–Law on medicinal product for human use

How do we procure?How do we procure?

Meeting of WHO PQP with European manufacturers and EU marketing authorisation holders, Copenhagen, November 20097 |

All purchases shall be carried out by means of competitive tenders

UNICEF financial rules and regulations

The following products may only be procured through Supply Division. Exceptions may be granted on a case-by-case basis but these must be authorised by Supply Division.

(h) pharmaceuticals;(i) therapeutic food;(j) supplementary food; Book G: Supply Manual, Chapter: 7

Guiding principlesGuiding principles

Requisition

Choice of solicitation

method

Receipt of offers

Adjudication

ARD

CRC Submission

Issuing Purchase Orderd

PO Value

Defining commercial

requirements

Drafting List of Potential Suppliers

Confirmation/Production of

Specifications

<100,000 USD

>100,000 USD

Commercialevaluation of

offers

Floating of bid

PROCUREMENT WORKFLOW

Technical evaluation of

offers

Compliance with

manufacturing standards

Compliance with

product specification

Meeting of WHO PQP with European manufacturers and EU marketing authorisation holders, Copenhagen, November 20099 |

Overview of procurementOverview of procurement

Meeting of WHO PQP with European manufacturers and EU marketing authorisation holders, Copenhagen, November 200910 |

Top 10 pharmaceuticals in 2009Top 10 pharmaceuticals in 2009

N*Item description USD value

1ZDV+3TC+NVP 300+150+200mg tabs/PAC-60 19,152,780.59

2d4T+3TC+NVP 30+150+200mg tabs/PAC-60 16,250,419.86

3Arteme.+Lumefan,20+120mg tab,6x4/PAC-72014,669,778.48

4Efavirenz 600mg tabs/PAC-30 13,660,074.00

5ZDV + 3TC 300+150mg tabs/PAC-60 5,650,232.22

6Mebendazole 500mg tabs/PAC-1003,290,224.33

7New form. Oral reh.salts,1Ls/CAR-10x1002,902,373.07

8Tenofovir 300mg tabs/PAC-30 2,523,703.33

9Albendazole 400mg tabs/PAC-100 2,442,581.27

10Micronutrient,film-coated tabs/PAC-1000 2,056,892.67

Meeting of WHO PQP with European manufacturers and EU marketing authorisation holders, Copenhagen, November 200911 |

Top 10 pharmaceuticals in 2008 Top 10 pharmaceuticals in 2008

N*Item description USD value

1d4T+3TC+NVP 30+150+200mg tabs/PAC-60 16,066,672.46

2Efavirenz 600mg tabs/PAC-30 12,693,687.08

3Arteme.+Lumefan,20+120mg tab,6x4/PAC-720 8,920,045.80

4ZDV+3TC+NVP 300+150+200mg tabs/PAC-60 5,823,908.70

5d4T+3TC+NVP 30+150+200mg tabs/PAC-60 5,081,852.55

6ZDV + 3TC 300+150mg tabs/PAC-60 4,817,080.40

7Zinc 20mg tablets/PAC-100 3,390,646.18

8Iodized oil 200mg caps/PAC-1500 3,228,658.47

9Sulfameth.+trimeth.400+80mg tabs/PAC-500 3,087,592.82

10Arteme.+Lumefan,20+120mg tab,6x2/PAC-360 2,822,615.23

Meeting of WHO PQP with European manufacturers and EU marketing authorisation holders, Copenhagen, November 200912 |

Top 10 Vendors in 2009Top 10 Vendors in 2009

N*Vendor USD value 1Hetero Drugs Ltd. 28,969,451.55 2Novartis Pharma AG 22,021,986.12 3Cipla Ltd. 13,070,254.58 4Ranbaxy Laboratories Ltd. 9,233,604.70 5MATRIX LABORATORIES LTD 9,202,269.41 6Aurobindo Pharma Limited 9,098,614.00 7Remedica Ltd. 7,624,767.18 8Micro Labs Ltd. 5,376,448.29 9KBI Kunststoffbeutel Prod. GmbH & C 3,964,128.24

10Medreich plc 3,718,432.64

98 vendors

Meeting of WHO PQP with European manufacturers and EU marketing authorisation holders, Copenhagen, November 200913 |

Origin of product (2009)Origin of product (2009)