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20 December 2001 Dear Supplier INVITATION TO TENDER – SOLE SUBSIDISED SUPPLY OF PHARMACEUTICALS PHARMAC invites tenders for the sole subsidised supply of certain pharmaceuticals in New Zealand. This invitation to tender incorporates the following schedules: (a) (b) (c) Schedule 1 sets out the definitions used in this invitation; Schedule 2 specifies the pharmaceuticals for which you may submit a tender bid; Schedule 3 describes the process PHARMAC intends to follow in relation to this tender, and provides instructions on how to submit a tender bid; Schedule 4 sets out the forms you must use if you wish to submit a tender bid; Schedule 5 sets out the terms that will apply if your tender bid is accepted; Schedule 6 sets out the additional terms that will apply if your accepted tender bid includes a foreign exchange bid; and Schedule 7 sets out the terms that will apply if PHARMAC accepts your bid for backup supply.

(d) (e) (f)

(g)

If you wish to submit a tender bid, you must submit it to PHARMAC no later than 5.00 pm (New Zealand time) on Monday, 4 March 2002. If you have any inquiries about this invitation you should contact Matthew Perkins or Sarah Schmitt at PHARMAC. We look forward to receiving your tender. Yours sincerely

Wayne McNee Chief Executive

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Contents

Schedule 1: Definitions and interpretation........................................................................... 6 1. 2. Definitions........................................................................................................................ 6 Interpretation................................................................................................................... 9

Schedule 2: Products to be tendered.................................................................................. 10 1. Information about Tender Items .................................................................................. 10

1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 List of Tender Items ..............................................................................................10 Patents ................................................................................................................10 Unit Volume and market value figures ....................................................................10 Subsidies .............................................................................................................10 Special terms .......................................................................................................11 Tender Items subject to sole/preferred supply arrangements ...................................11 Current restrictions ...............................................................................................11 Back-up supply.....................................................................................................11 IMM status ...........................................................................................................11

2.

List of Products............................................................................................................. 12

Schedule 3: Tender Process ................................................................................................ 54 1. General ........................................................................................................................... 54

1.1 1.2 1.3 1.4 1.5 1.6 Sole Supply Period ...............................................................................................54 Transition Periods .................................................................................................54 Contract ...............................................................................................................54 PHARMAC may initiate limited negotiations ............................................................54 Supply to DHBs ....................................................................................................55 Termination and amendment of Invitation ...............................................................55

2.

Information about submitting a Tender Bid............................................................... 56

2.1 2.2 2.3 2.4 2.5 2.6 Choice of forms and strengths ...............................................................................56 Consents not yet held ...........................................................................................56 Individual Tender Bids ...........................................................................................56 Aggregated Tender Bids .......................................................................................56 No conditions .......................................................................................................56 Separate offers .....................................................................................................56

3.

What to include in your Offer Letter and Tender Submission Form....................... 56

3.1 3.2 3.3 3.4 Compulsory use of Offer Letter and Tender Submission Form .................................56 Information that must be supplied about you...........................................................57 Information that must be supplied about the Tender Item.........................................57 Foreign Exchange Bid ...........................................................................................57

2

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3.5

PHARMAC may request further information............................................................58

4.

How to submit a Tender Bid ........................................................................................ 58

4.1 4.2 Submission of Tender Bids ....................................................................................58 Key dates .............................................................................................................59

5.

Evaluation ...................................................................................................................... 59

5.1 5.2 Process of evaluation............................................................................................59 Matters for evaluation............................................................................................59

6.

Conformity ..................................................................................................................... 60

6.1 Conformity............................................................................................................60

7.

Decision.......................................................................................................................... 60

7.1 7.2 7.3 7.4 Decision on acceptance of Tender Bid ...................................................................60 Notification of acceptance .....................................................................................61 PHARMAC’s rights reserved..................................................................................61 Conditional acceptance.........................................................................................61

8.

Additional terms for Back-up Supply Bids ................................................................ 62

8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 Back-up Supply Bid...............................................................................................62 Terms applicable to Back-up Supply Bid ................................................................62 Contract ...............................................................................................................62 Consents must be held..........................................................................................62 No Aggregated Tender Bid ....................................................................................62 Compulsory use of Offer Letter and Back-up Supply Submission Form ....................62 Information that must be supplied about the Tender Item.........................................62 No Foreign Exchange Bid......................................................................................63 Evaluation ............................................................................................................63

9.

Dealing with information .............................................................................................. 63

9.1 9.2 Confidentiality.......................................................................................................63 Use of information.................................................................................................64

10.

Miscellaneous................................................................................................................ 64

10.1 10.2 10.3 10.4 10.5 10.6 Costs ...................................................................................................................64 No reliance...........................................................................................................64 No further liability..................................................................................................64 No lobbying ..........................................................................................................64 Enquiries ..............................................................................................................64 Jurisdiction and governing law...............................................................................64

Schedule 4: Offer Letter, Tender Submission Form and Back-up Supply Submission Form......................................................................................................................................... 65 1. 2. Offer Letter..................................................................................................................... 65 Tender Submission Form............................................................................................. 67

3

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3.

Back-up Supply Submission Form............................................................................. 69

Schedule 5: Contract terms.................................................................................................. 70 1. General ........................................................................................................................... 70

1.1 1.2 Operating Policies and Procedures ........................................................................70 Amendments to Pharmaceutical Schedule..............................................................70

2.

Effect of Sole Supply Status........................................................................................ 71

2.1 2.2 2.3 2.4 2.5 Subsidy arrangements ..........................................................................................71 Exclusivity for the Sole Supply Period ....................................................................71 Withdrawal of Sole Supply Status ..........................................................................71 Suspension of Sole Supply Status .........................................................................72 Subsidy arrangements after the End Date ..............................................................72

3.

Consents........................................................................................................................ 73

3.1 3.2 Warranty and indemnity that Consents are held......................................................73 Changed medicine notification...............................................................................73

4.

Price................................................................................................................................ 73

4.1 4.2 4.3 4.4 Price change ........................................................................................................73 Supply price .........................................................................................................74 Warranty that not less than cost price.....................................................................74 No reference pricing during Sole Supply Period ......................................................74

5.

Out-of-stock arrangements.......................................................................................... 74

5.1 5.2 5.3 5.4 Notification of Potential Out-of-Stock Event and supply of Alternative Pharmaceutical74 General indemnity.................................................................................................74 Liquidated damages and specific indemnity............................................................75 Limited liability during the First Transition Period.....................................................76

6.

Termination, restrictions and Crown Direction......................................................... 76

6.1 6.2 Termination and restrictions for clinical reasons ......................................................76 Crown Direction ....................................................................................................76

7. 8.

Guarantee....................................................................................................................... 77 Miscellaneous................................................................................................................ 77

8.1 8.2 8.3 8.4 8.5 8.6 8.7 Litigation support ..................................................................................................77 Dispute resolution.................................................................................................77 Advertising ...........................................................................................................78 No waiver .............................................................................................................78 Entire agreement ..................................................................................................78 Amendments ........................................................................................................79 Jurisdiction and governing law...............................................................................79

Schedule 6: Additional contract terms for foreign exchange bid ................................... 80

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1. 2. 3. 4. 5.

Introduction ................................................................................................................... 80 Establishment of Base Price in New Zealand dollars............................................... 81 Exchange Rate Price Review....................................................................................... 81 Reviewed Price.............................................................................................................. 81 Dispute Over Price ........................................................................................................ 82

Schedule 7: Back-up Supply terms ...................................................................................... 84 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Definitions...................................................................................................................... 84 Application of Schedule Five terms ............................................................................ 84 Initial Stock .................................................................................................................... 85 Notification of need for Back-up Supply.................................................................... 85 Additional Supply.......................................................................................................... 85 Reimbursement for Unsold Stock............................................................................... 86 Conditions of reimbursement...................................................................................... 86 Calculation of reimbursement..................................................................................... 86 Payment of reimbursement amount ........................................................................... 87 PHARMAC’s rights in relation to the Unsold Stock.................................................. 87 Payment for stock-holding costs ................................................................................ 87

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Schedule 1: Definitions and interpretation 1. Definitions

In this Invitation: Aggregated Tender Bid means a Tender Bid that is specified to be an Aggregated Tender Bid and that includes more than one Tender Item of the same Chemical Entity that PHARMAC is to consider in aggregate; Agreement means Schedule Five and includes, to the extent applicable, the other Schedules comprising the Invitation; Alternative Pharmaceutical means an alternative brand of the Pharmaceutical that PHARMAC considers at its sole discretion to be an acceptable substitute for a Pharmaceutical; Back-up Supply Bid means a bid for Back-up Supply Status for a particular Tender Item; Back-up Supply Status means the status of being the back-up supplier of a particular Tender Item in the event that Sole Supply Status for that Tender Item is suspended under clause 2.4 of Schedule Five; Back-up Supply Submission Form means the form on which you must submit your Backup Supply Bid, and which is attached to the Offer Letter, as set out in Schedule Four; Base Exchange Rate means the average of the Reserve Bank Quote over 10 consecutive trading days ending: (a) in the case of an unconditional acceptance of your Tender Bid, 15 days prior to the date that PHARMAC’s board of directors (or chief executive, where applicable) determines to accept your Tender Bid; or in the case of acceptance of your Tender Bid being conditional on you obtaining market approval for the Pharmaceutical, on the date on which such market approval is notified in the New Zealand Gazette;

(b)

Base Price means, where your Foreign Exchange Bid has been accepted, the price exmanufacturer (exclusive of GST) for the Pharmaceutical, as calculated and notified to you by PHARMAC in accordance with clause 2? of Schedule Six; Calculated Price is as defined in clause 2 of Schedule Six; Chemical Entity means any pharmaceutical that contains, and is described generically according to, the relevant active ingredient specified in Schedule Two; Confidential Information means all information exchanged between us under this Invitation or in relation to your Tender Bid, including during all negotiations relating to your Tender Bid; Consents means all consents, permits, licences and authorisations, whether statutory or otherwise, required for the supply of the Tender Item in New Zealand (including Ministry of Health market approval);

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Crown Direction means any ministerial direction given to PHARMAC under section 65 of the New Zealand Public Health and Disability Act 2000; Date of an Exchange Rate Price Review means 30 June 2003 and 30 June 2004. Deadline means 5:00 pm, Monday, 4 March 2002 (New Zealand time); District Health Board (or DHB) has the same meaning as in the New Zealand Public Health and Disability Act 2000; End Date means the last day of the Sole Supply Period, being 30 June 2005; Evaluation Committee means a committee established by PHARMAC to evaluate Tender Bids; Exchange Rate Average means the average of the Reserve Bank Quote, over the period: (a) for the first Exchange Rate Price Review, from the date on which the Base Exchange Rate is determined until the first occurring 30 June after that date; and for any subsequent Exchange Rate Price Review, from the date on which the last Exchange Rate Price Review occurred until the date of the next Exchange Rate Price Review;

(b)

Exchange Rate Price Review means the review of the Base Price or the Reviewed Price, as applicable, in accordance with clause 3 of Schedule Six; First Transition Period means the period of three calendar months beginning on the first day of the month following the date on which PHARMAC notifies the market that a Tender has been accepted for a Tender Item (or such longer period as PHARMAC determines under clause 1.2 of Schedule Three); Foreign Exchange Bid means a Tender Bid that specifies a price in a Permitted Currency; Funder means the body or bodies responsible, pursuant to the New Zealand Public Health and Disability Act 2000, for the funding of pharmaceuticals listed on the Pharmaceutical Schedule (which may be one or more District Health Boards and/or the Ministry of Health) and their successors; IMM means interchangeable multi-source medicine, as defined by the New Zealand Medicines and Medical Devices Safety Authority (Medsafe); Initial Period is as defined in clause 5 of Schedule Six; Invitation means this invitation to tender and includes the cover letter and each of the Schedules; Offer Letter means the letter of offer to which your Tender Submission Form(s) and/or Backup Supply Submission Form(s) must be attached, in the form set out in Schedule Four; OPPs means PHARMAC’s then current Operating Policies and Procedures; Permitted Currency means either United States dollars, the euro, pounds sterling, Australian dollars or Japanese yen;

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Pharmaceutical means the relevant Tender Item for which you have submitted, and PHARMAC has accepted, a Tender Bid; Potential Out-of-Stock Event means: (a) (b) your stock of the Pharmaceutical falls below one-sixth of the Unit Volume; your stock of the Pharmaceutical falls below two-thirds of your most recent three months’ total Unit sales of the Tender Item; or your forecast of sales demand in respect of the next two-month period is greater than your stock of the Pharmaceutical;

(c)

Price means the price ex-manufacturer (exclusive of GST) at which the Pharmaceutical is to be supplied, or made available for supply, by you to wholesalers and other such distributors, and at which the Pharmaceutical is to be subsidised by the Funder, being either: (a) the price specified in your successful Tender Submission Form or Back-up Supply Submission Form (as applicable), unless there has been a subsequent price change in accordance with the terms of the Invitation, in which case the Price will be the price notified to you by PHARMAC upon acceptance of your Tender Bid; or in the case of a Foreign Exchange Bid, a price determined and notified in accordance with Schedule Six;

(b)

PTAC means the Pharmacology and Therapeutics Advisory Committee; Reserve Bank Quote means the exchange rate between New Zealand dollars and the Permitted Currency in which you made the Foreign Exchange Bid, being the mid rate of the buy and sell quotes for that exchange rate quoted by the Reserve Bank of New Zealand on the days on which the New Zealand dollar and the Permitted Currency are traded, expressed as the value of one New Zealand dollar in Permitted Currency units (e.g. NZ$1.00 = US$0.43); Reviewed Price is as defined in clause 4 of Schedule Six; Risk Sharing Percentage means, in respect of each Tender Item for which you submit a Foreign Exchange Bid, the percentage value of the exchange rate risk (between 1% and 100%) that you agree to share with PHARMAC for that Tender Item. For example, if you specify an 80% Risk Sharing Percentage, you agree that 80% of the price at which you supply the Tender Item may change in response to foreign exchange movement and 20% of the price will not change, in accordance with the terms in Schedule Six; Second Transition Period means the period of three calendar months beginning on the day after the expiry of the First Transition Period (or such longer period as PHARMAC determines under clause 1.2 of Schedule Three); Sole Supply Period means the period beginning on the day after the expiry of the Second Transition Period and ending on 30 June 2005; Sole Supply Status means the status of being the sole subsidised supplier of the particular Tender Item (i.e. the sole brand of the Tender Item listed on the Pharmaceutical Schedule) for the Sole Supply Period; Tender Bid means the Offer Letter together with the Tender Submission Form submitted for a particular Tender Item;

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Tender Item means the form and strength of a Chemical Entity (or entities, if applicable) for which you may submit a Tender Bid (and in the case of combined oral contraceptives includes the pack size of that Chemical Entity, e.g. Norethisterone with Mestranol 21 pack is a separate Tender Item from Norethisterone with Mestranol 28 pack); Tender Submission Form means the form on which you must submit your bid for each Tender Item and which is attached to the Offer Letter, as set out in Schedule Four; Third Transition Period means the period of three months beginning on the day after the expiry of the Sole Supply Period; Transition Periods collectively refers to the First, Second and Third Transition Periods; Unit means an individual unit of a Tender Item (e.g. tablet, 1ml of an oral liquid, ampoule, syringe); Unit Subsidy means the subsidy specified for that Tender Item in the Pharmaceutical Schedule, divided by the number of Units in the pack specified in the Pharmaceutical Schedule as being the subsidised pack size for that Tender Item (and where that Tender Item is not listed on the Pharmaceutical Schedule, the subsidy and pack size specified in the most recent issue of the Pharmaceutical Schedule published prior to that Tender Item being delisted); and Unit Volume means the approximate number of Units of the Tender Item subsidised by PHARMAC, and claimed for by community pharmacies, in one year, as specified in Schedule Two.

2.

Interpretation

In the construction of this Invitation, unless the context otherwise requires: (a) a reference to a clause or a Schedule is a reference to a clause of, or a Schedule to, this Invitation; a reference to a statute or other law includes regulations and other instruments under it and consolidations, amendments, re-enactments or replacements of any of them (whether before or after the date of this Agreement); the singular includes the plural and vice versa; the word person includes an individual, a body corporate, an association of persons (whether corporate or not), a trust, a state and an agency of state, in each case, whether or not having a separate legal personality; a reference to a person includes a reference to the person’s executors, administrators, successors, substitutes, (including, but not limited to, persons taking by novation) and permitted assignees; words importing one gender include the other genders; and headings in this Agreement are for convenience only and have no legal effect.

(b)

(c) (d)

(e)

(f) (g)

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Schedule 2: Products to be tendered 1.

1.1

Information about Tender Items

List of Tender Items

This Schedule sets out the Tender Items and information about the Tender Items. While PHARMAC has taken all reasonable care in preparing the information contained in this Schedule, it accepts no liability for any errors or omissions in the information.

1.2

Patents

(a) Where possible, PHARMAC has identified Tender Items that it understands may be the subject of a patent that it believes is due to expire after 4 March 2002. Where PHARMAC has been advised of the existence of a process patent prior to sending out this Invitation, it has shown this in the attached list by the use of a + symbol. However, PHARMAC makes no representation as to the patent status of the Tender Items and accepts no liability for any patent infringement that might occur as a result of this tender process or PHARMAC’s acceptance of a Tender Bid, including infringement of process patents.

(b)

(c)

1.3

Unit Volume and market value figures

(a) Except where indicated otherwise the Unit Volume figures are based on the year ending 31 August 2001. Market value figures are expressed as the number of Units subsidised in the year ending 31 August 2001, multiplied by the Unit Subsidy as at 1 December 2001. The figures referred to in paragraphs (a) and (b): (i) are approximate and indicative only. PHARMAC makes no representation as to the accuracy of these figures or as to the level of sales or likely sales of any Tender Item. In particular, if these figures change at any time during the period from PHARMAC’s pre-tender consultation until decisions have been made about the acceptance of Tender Bids for all Tender Items, PHARMAC is not obliged to notify you of any such change; and do not include DHB volumes.

(b)

(c)

(ii)

1.4

Subsidies

(a) The level at which each Tender Item is specified in the attached list as being subsidised per Unit is as at 1 December 2001. Subsidies of Tender Items may change before a Tender Bid is accepted. Where a * symbol is indicated next to the Unit Subsidy, there is no fully funded product available for that Tender Item as at 1 December 2001. 10

(b) (c)

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1.5

Special terms

Where there are any special terms relating to a particular Tender Item, those terms are indicated in the column entitled “Comments” in the list.

1.6

Tender Items subject to sole/preferred supply arrangements

Where a Tender Item is underlined, that item is subject to a sole or preferred supply contract as at the date of this Invitation. Accordingly, the subsidy for those items is fixed until 30 June 2002 (unless otherwise indicated) and, for items that are the subject of a sole supply contract, the listing of a new brand could only occur after that date.

1.7

Current restrictions

Where a # symbol is indicated, that Tender Item is subject to restrictions or special criteria as specified in the Pharmaceutical Schedule.

1.8

Back-up supply

Where a ^ symbol is indicated, you may submit a Back-up Supply Bid in accordance with clause 8.1 of Schedule Three.

1.9

IMM status

Where a 3symbol is indicated, your brand of the relevant Chemical Entity for which you submit a bid must have IMM status.

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SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

ALIMENTARY TRACT AND METABOLISM Antacids and Antiflatulants Antacids and Reflux Barrier Agents

Alginic Acid Sodium alginate 225mg and magnesium alginate 87.5mg per sachet Tab 500 mg with magnesium trisil 25 mg, aluminium hydroxide gel, dried 100 mg, and sodium bicarbonate 170 mg peppermint flavour Calcium Carbonate Tab 420 mg and aminoacetic acid 180 mg with or without dimethicone 21 mg Polysiloxane Tab aluminium hydroxide 250 mg with magnesium trisil 120 mg, magnesium hydroxide 120 mg and polysiloxane 10 mg Simethicone Oral liq aluminium hydroxide 200 mg with magnesium hydroxide 200 mg and activated simethicone 20 mg per 5 ml Tab aluminium hydroxide 200 mg with magnesium hydroxide 200 mg and activated simethicone 20 mg Sodium Alginate Oral liq 500 mg with sodium bicarbonate 267 mg per 10 ml 1,590,692 1,383,003 $0.1500 $0.0300 $238,604 $41,490 *

2,983,642

$0.0300

$89,509

65,111

$0.0300

$1,953 *

26,044,589

$0.0030

$78,134 *

1,025,163

$0.0150

$15,377 *

13,192,303

$0.0030

$39,577 *

Phosphate Bindng Agents

Aluminium Hydroxide Tab 600 mg 358,049 $0.1256 $44,971

Antidiarrhoeals Agents Which Reduce Motility

Codeine Phosphate Tab 15 mg Tab 30 mg Tab 60 mg 1,032,233 5,685,132 723,993 $0.0760 $0.1060 $0.2010 $78,450 $602,624 $145,523 *

Diphenoxylate Hydrochloride with Atropine Sulphate Tab 2.5 mg with atropine sulphate 25 mcg 685,828

$0.0668

$45,813

Rectal and Colonic Anti-inflammatories

Hydrocortisone Acetate Rectal foam 10 %, CFC-free Olsalazine Cap 250 mg Tab 500 mg Prednisolone Sodium Phosphate Enema 20 mg 100 ml Sulphasalazine Enema 3 g per 100 ml Suppos 500 mg 171,259 $0.9033 $154,701 Subsidy per 21.1g OP Pack.

273,958 212,616

$0.4500 $0.8550

$123,281 $181,787

# #

45,336

$2.4757

$112,239

506 4,086

$5.3429 $0.6990

$2,703 $2,856

#

Thursday, 20 December 2001

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SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

ALIMENTARY TRACT AND METABOLISM

Sulphasalazine Tab 500 mg Tab EC 500 mg 404,192 5,526,337 $0.1110 $0.1242 $44,865 $686,371

Antihaemmorrhoidals Rectal Sclerosants

Oily Phenol Inj 5%, 5 ml 873 $14.3420 $12,521

Soothing Agents

Zinc Oxide Oint zinc oxide with balsam peru Suppos zinc oxide with balsam peru 62,450 33,103 $0.0900 $0.3725 $5,621 * $12,331 *

Antispasmodics and Other Agents Altering Gut Motility Antispasmodics and Other Agents Altering Gut Motility

Atropine Sulphate Inj 1200 mcg 1 ml Inj 400 mcg 1 ml Inj 600 mcg 1 ml Cisapride Oral liq 1 mg per ml Tab 10 mg Tab 5 mg Dicyclomine Hydrochloride Tab 10 mg Tab long-acting 40 mg Hyoscine N-Butylbromide Inj 20 mg 1 ml Tab 10 mg Mebeverine Hydrochloride Tab 135 mg 3,623 1,228 65,393 $0.6860 $0.6960 $0.5680 $2,485 $855 $37,143 # √ # √ # √ Currently available on PSO Currently available on PSO Currently available on PSO

935,112 1,079,314 437,072

$0.0963 $0.4000 $0.2500

$90,051 $431,726 $109,268

439,101 348,593

$0.0481 $0.1300

$21,121 $45,317

Currently available on PSO

43,437 1,290,592

$1.2300 $0.0683

$53,428 $88,147 *

Currently available on PSO

920,532

$0.1191

$109,645 *

#

Anti-ulcerants Antisecretory and Cytoprotective

Misoprostol Tab 200 mcg 310,828 $0.4392 $136,505 #

H2 Antagonists

Ranitidine Hydrochloride Inj 25 mg per ml, 2 ml Oral liq 150 mg per 10 ml Tab 150 mg Tab 300 mg 2,159 739,644 15,316,692 3,803,008 $1.7500 $0.0668 $0.0583 $0.2000 $3,778 $49,408 $892,963 $760,602 #

Thursday, 20 December 2001

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SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

ALIMENTARY TRACT AND METABOLISM Site Protective Agents

Sucralfate Tab 1 g Tripotassium Dicitratobismuthate Tab 120 mg 128,475 $0.2958 $38,007 *

112,774

$0.3393

$38,263

Diabetes Hyperglycaemic Agents

Glucagon Hydrochloride Inj 1 mg syringe kit 10,501 $27.0000 $283,527 ^ # Currently available on PSO

Oral Hypoglycaemic Agents

Glibenclamide Tab 2.5 mg Tab 5 mg Gliclazide Tab 80 mg Glipizide Tab 5 mg Tolbutamide Tab 500 mg 512,123 2,568,318 $0.0220 $0.0275 $11,267 $70,629 √ √ √ √ √

12,195,826

$0.1576

$1,922,062

10,408,525

$0.0610

$634,920

353,675

$0.0678

$23,993

Laxatives Bulk-forming Agents

Mucilaginous Laxatives Dry Sachets 7 g Sugar Free Mucilaginous Laxatives with Stimulants Dry Sachets 7 g 44,396,100 7,941 5,700,750 $0.0176 $0.1233 $0.0176 $781,371 $979 * $100,333 Units in g. A number of different OP packs are subsidised. Units in g. A number of different OP packs are subsidised.

11,141,050 5,815

$0.0176 $0.1233

$196,082 * $717 *

Units in g. A number of different OP packs are subsidised.

Faecal Softeners

Docusate Sodium Enema conc 18% Oral drops 10% Tab 120 mg Tab 50 mg Docusate Sodium with Bisacodyl Suppos 100 mg with bisacodyl 10 mg Paraffin Liquid And Phenolphthalein Emulsion BP 1980 4,100 222,630 978,857 300,330 $0.0446 $0.1100 $0.0395 $0.0322 $183 * $24,489 * $38,665 * $9,671 *

6,933

$0.4400

$3,051 *

267,865

$0.0107

$2,866 *

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SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

ALIMENTARY TRACT AND METABOLISM Osmotic Laxatives

Magnesium Hydroxide Tab Sodium Acid Phosphate Enema 16% with sodium phosphate 8% 138,921 $0.1410 $19,584 #

27,283

$2.5000

$68,208 *

Sodium Citrate with Sodium Lauryl Sulphoacetate Enema 90 mg with sodium lauryl 335,940 sulphoacetate 9 mg per ml, 5 ml

$0.6842

$229,850

Stimulant Laxatives

Bisacodyl Suppos 5 mg Tab 5 mg Senna Tab standardised 12,963 1,347,455 $0.3917 $0.0441 $5,077 * $59,423

1,649,088

$0.0217

$35,785 *

Minerals Calcium

Calcium Gluconate Inj 10%, 10 ml Calcium Lactate-Gluconate Tab 1 g 542 $1.9900 $1,079 *

2,342,157

$0.3507

$821,315

Fluoride

Sodium Fluoride Tab 1.1 mg 21,432 $0.0300 $643

Magnesium

Magnesium Sulphate Inj 49.3% 3,339 $3.2280 $10,778

Zinc

Zinc sulphate Cap 220 mg 298,546 $0.0556 $16,599 *

Mouth and Throat Agents Used in Mouth Ulceration

Benzydamine Hydrochloride Soln 0.15% Chlorhexidine Mouthwash 0.2% Choline Salicylate with Cetalkonium Chloride Adhesive gel 8.7% with cetalkonium chloride 0.01% Sodium Carboxymethylcellulose With pectin and gelatin paste With pectin and gelatin powder Triamcinolone Acetonide 0.1% in Dental Paste USP 461,585 $0.0180 $8,309 * #

948,200

$0.0138

$13,085

125,790

$0.1373

$17,275 *

15,991 728

$0.2726 $0.3029

$4,360 $220 *

47,265

$0.9800

$46,320

Thursday, 20 December 2001

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SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

ALIMENTARY TRACT AND METABOLISM Oropharyngeal Anti-infectives

Amphotericin B Lozenges 10 mg Nystatin Oral liq 100,000 u per ml Pastilles 100,000 u 187,689 $0.2255 $42,324 *

987,432 359,576

$0.2042 $0.2250

$201,600 $80,905 *

Other Oral Agents

Mouthwash Solution Tab Thymol Glycerin Compound, BPC 42,846 $0.0285 $1,221 *

541,435

$0.0146

$7,905 *

Vitamins Vitamin A

Vitamin A with Vitamin D Cap 4500 iu with Vitamin D 450 iu Vitamin A with Vitamins D and C Soln 1000 u with Vitamin D 400 u and ascorbic acid 30 mg per 10 drops 423,569 $0.0289 $12,241 *

120,640

$0.4380

$52,840 * ^

Vitamin B Group

Pyridoxine Hydrochloride Tab 100 mg Tab 25 mg Tab 50 mg Thiamine Hydrochloride Tab 10 mg Tab 25 mg Tab 50 mg 351,590 239,533 806,844 $0.0538 $0.0340 $0.0252 $18,916 * $8,144 $20,332 * # # #

16,362 44,662 716,811

$0.0336 $0.0385 $0.0418

$550 * $1,719 * $29,963 *

Vitamin D

Alfacalcidol Cap 0.25 mcg Cap 1 mcg Oral drops 2 mcg per ml Calciferol Tab 50,000 iu Calcitriol Cap 0.25 mcg Cap 0.5 mcg Oral liq 1 mcg per ml 143,340 31,069 7,000 $0.2632 $0.8798 $3.0340 $37,727 $27,335 $21,238 # # #

45,235

$1.0542

$47,687

#

5,820,668 525,762 1,410

$0.5263 $0.8798 $3.9400

$3,063,418 $462,565 $5,555

# # #

A rebate arrangement currently applies on this product A rebate arrangement currently applies on this product

Vitamin E

Alpha Tocopheryl Acetate Water solubilised soln 156 iu/ml, with calibrated dropper 37,700 $0.2700 $10,179 #

Thursday, 20 December 2001

Page 16


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

BLOOD AND BLOOD FORMING ORGANS Antianaemics Iron Therapy

Ferrous Gluconate Oral liq 300 mg per 5 ml Tab 300 mg Ferrous Sulphate Tab long-acting 325 mg Ferrous Sulphate with Folic Acid Tab long-acting 325 mg with folic acid 350 mcg Iron Polymaltose Inj 50 mg per ml 2 ml 3,581,081 4,436 $0.0437 $0.0000 $156,493 $0 ^ No product currently subsidised

5,386,015

$0.0337

$181,686 *

818,865

$0.0601

$49,241 *

16,433

$7.7940

$128,079

Megaloblastic

Folic Acid Inj 15 mg per ml 1 ml Oral liq 50 mcg per ml Hydroxocobalamin Inj 1 mg per ml, 1 ml 97 11,000 $2.2000 $0.7400 $213 * ^ $8,140 #

116,549

$0.9333

$108,779 * ^

Antifibrinolytics, Haemostatics and Local Sclerosants Antifibrinolytics, Haemostatics and Local Sclerosants

Aprotinin Inj 10,000 mcg per ml 50 ml Sodium Tetradecyl Sulphate Inj 0.5% 2 ml Inj 1% 2 ml Inj 3% 2 ml 46 $63.6000 $2,926 #

8 63 65

$4.6400 $5.0000 $5.7000

$37 * $315 * $371 *

Vitamin K

Menadione Sodium Bisulphite Tab 10 mg Phytomenadione Inj 10 mg per ml, 1 ml Inj 2 mg per 0.2 ml Tab 10 mg 104,255 $0.0475 $4,952 ^

1,581 6,106 11,551

$1.8420 $1.6000 $0.5600

$2,912 $9,770 $6,469

Currently available on PSO Currently available on PSO

Antithrombotic Agents Antiplatelet Agents

Aspirin Tab 300 mg Tab, soluble 300 mg Dipyridamole Cap long-acting 150 mg Tab 25 mg 934,310 13,166,367 $0.0216 $0.0216 $20,181 $284,394 * Currently available on PSO

4,313,954 210,175

$0.0130 $0.0021

$56,081 * $441 *

# #

Tab and cap tendered as one line item.

Thursday, 20 December 2001

Page 17


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

BLOOD AND BLOOD FORMING ORGANS

Dipyridamole Tab long-acting 150 mg 192,221 $0.0130 $2,499 * # Tab and cap tendered as one line item.

Heparin and Antagonist Preparations

Heparin Sodium Inj 1,000 iu per ml, 35 ml Inj 1,000 iu per ml, 5 ml Inj 25,000 iu per ml, 0.2 ml Inj 25,000 iu per ml, 5 ml Inj 5,000 iu per ml, 1 ml Inj 5,000 iu per ml, 5 ml Heparinised Saline Inj 10 iu per ml, 5ml Inj 100 iu per ml, 5 ml Protamine Sulphate Inj 10 mg per ml, 5 ml 2,402 7,332 7,109 387 24,937 10,395 $7.2500 $1.3360 $1.5000 $11.7280 $1.9200 $2.7730 $17,415 $9,796 $10,664 ^ ^ ^ #

$4,539 * ^ # $47,879 $28,825 ^ ^

21,233 2,322

$0.4600 $1.9300

$9,767 $4,481

11,122

$2.2400

$24,913 *

Fluids and Electrolytes Intravenous Administration

Dextrose Inj 50%, 10 ml Potassium Chloride Inj 150 mg per ml, 10 ml Inj 75 mg per ml, 10 ml Sodium Bicarbonate Inj 8.4% 10 ml Inj 8.4% 100 ml 5,590 $1.0560 $5,903 * ^ Currently available on PSO

11,827 17,244

$0.6100 $0.6032

$7,214 $10,402

^ ^

4,411 6,065

$2.0120 $10.8000

$8,875 $65,502

Oral Administration

Calcium Polystyrene Sulphonate Powder Compound Electrolytes Powder for soln for oral use 5 g Dextrose with Electrolytes Soln with electrolytes Potassium Bicarbonate Tab 315 mg with sodium acid phosphate 1.937 g and sodium bicarbonate 350 mg, effervescent Potassium Chloride Tab 548 mg (14 m eq ) with chloride 285 mg ( 8 m eq ) effervescent Tab long-acting 600 mg Sodium Polystyrene Sulphonate Powder 141,105 $0.4718 $66,573 ^ #

569,778

$0.5520

$314,517

Currently available on PSO

54,984,622

$0.0069

$378,294

^

43,641

$0.5000

$21,821

#

515,882 14,033,837

$0.0877 $0.0246

$45,243 * $345,513

155,849

$0.1980

$30,858

#

Thursday, 20 December 2001

Page 18


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

BLOOD AND BLOOD FORMING ORGANS Lipid Modifying Agents Fibrates

Bezafibrate Tab 200 mg Gemfibrozil Cap 300 mg 4,718,843 $0.1111 $524,263

3,212,004

$0.0958

$307,710

HMG CoA Reductase Inhibitors (statins)

Fluvastatin Cap 20 mg Cap 40 mg Pravastatin Tab 10 mg Tab 20 mg 506,659 517,976 $0.4310 $0.9000 $218,370 $466,178 # #

11,470 62,173

$0.2633 $0.5320

$3,020 * $33,076 *

# #

CARDIOVASCULAR SYSTEM Agents affecting the Renin-Angiotensin system ACE Inhibitors with Diuretics

Captopril with Hydrochlorothiazide Tab 25 mg with hydrochlorothiazide 15 mgTab 50 mg with hydrochlorothiazide 25 mg Enalapril With Hydrochlorothiazide Tab 20 mg with hydrochlorothiazide 12.5 mg Lisinopril with Hydrochlorothiazide Tab 20 mg with hydrochlorothiazane 12.5 mg 17,232 $0.3153 $5,434 *

265,217

$0.1107

$29,351 *

20,195

$0.3567

$7,203 *

Angiotension Converting Enzyme (ACE) Inhibitors

Captopril Oral liq 5 mg per ml Lisinopril Tab 10 mg Tab 20 mg Tab 5 mg Perindopril Tab 2 mg Tab 4 mg Quinapril Tab 10 mg Tab 20 mg Tab 5 mg 35,400 $0.4438 $15,711 ^

503,333 381,865 532,014

$0.2380 $0.3367 $0.1637

$119,793 $128,561 $87,073

148,525 228,842

$0.1000 $0.1350

$14,853 $30,894

13,964,808 13,031,846 10,471,622

$0.1673 $0.3183 $0.1517

$2,336,773 $4,148,467 $1,588,199

Alpha Adrenoceptor Blockers Alpha Adrenoceptor Blockers

Phentolamine Mesylate Inj 10 mg per ml, 1 ml 852 $3.5940 $3,062 *

Thursday, 20 December 2001

Page 19


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

CARDIOVASCULAR SYSTEM

Terazosin Hydrochloride Tab 2 mg Tab 5 mg Tab 7 x 1 mg and 7 x 2 mg 4,664,258 2,975,096 19,166 $0.4000 $0.6500 $0.3100 $1,865,703 $1,933,812 $5,941

Beta Adrenoceptor Blockers Beta Adrenoceptor Blockers

Labetalol Inj 5 mg per ml, 20 ml Metoprolol Tartrate Inj 1 mg per ml 5 ml Tab 100 mg Tab 50 mg Tab long-acting 200 mg Oxprenolol Tab long-acting 160 mg Sotalol Inj 10 mg per ml, 4 ml 1,620 $11.8120 $19,135 *

778 267,921 378,499 64,252

$4.8160 $0.3633 $0.1500 $0.8107

$3,747 * $97,336 $56,775 $52,087 √ √ √

264,178

$0.3058

$80,786 *

854

$6.3600

$5,431

^

Beta Adrenoceptor Blockers with Diuretics Beta Adrenoceptor Blockers with Diuretics

Atenolol with Chlorthalidone Tab 100 mg with chlorthalidone 25 mg Tab 50 mg with chlorthalidone 12.5 mg Pindolol with Clopamide Tab 10 mg with clopamide 5 mg 71,253 104,608 $0.0540 $0.0406 $3,848 * $4,247 * Currently listed products to be delisted 1 January 2002 Currently listed products to be delisted 1 January 2002

18,844

$0.1050

$1,979 *

Calcium Channel Blockers Dihydropyridine Calcium Channel Blockers (DHP CCBs)

Nifedipine Tab long-acting 10 mg Tab long-acting 30 mg Tab long-acting 60 mg 144,616 1,213,807 420,883 $0.0875 $0.1390 $0.4373 $12,654 $168,719 * $184,066 * # #

Other Calcium Channel Blockers

Perhexiline Maleate Tab 100 mg Verapamil Hydrochloride Cap long-acting 120 mg Inj 2.5 mg per ml 2 ml Tab 120 mg Tab long-acting 120 mg 247,508 $0.3985 $98,632 * ^ # √

172,395 1,555 78,579 2,158,825

$0.2532 $1.5100 $0.2532 $0.2532

$43,650 $2,348 $19,896 $546,614

One line item with the Tab longacting 120mg Currently available on PSO

One line item with the Cap longacting 120mg

Thursday, 20 December 2001

Page 20


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

CARDIOVASCULAR SYSTEM Centrally Acting Agents Centrally Acting Agents

Clonidine Inj 150 mcg per ml, 1 ml Tab 150 mcg Transdermal delivery system 2.5 mg, 100 mcg per day Transdermal delivery system 5 mg, 200 mcg per day Transdermal delivery system 7.5 mg, 300 mcg per day Methyldopa with Hydrochlorothiazide Tab 250 mg with hydrochlorothiazide 15 mg 4,349 429,150 20,848 10,945 9,360 $2.6000 $0.3148 $4.8250 $7.2000 $9.2750 $11,307 $135,096 $100,592 $78,804 $86,814

180

$0.2480

$45

Diuretics Loop Diuretics

Bumetanide Inj 500 mcg per ml, 4 ml Tab 1 mg Frusemide Infusion 10 mg per ml, 25 ml Inj 10 mg per ml, 2 ml Oral liq 10 mg per ml 625 678,197 $1.5900 $0.1363 $994 $92,438

96 21,020 81,600

$8.7520 $0.7300 $0.3230

$840 $15,345 $26,357

^ # ^ ^ Currently available on PSO

Potassium Sparing Combination Diuretics

Amiloride with Frusemide Tab 5 mg with frusemide 40 mg 590,539 $0.1667 $98,423 *

Potassium Sparing Diuretics

Amiloride Oral liq 1 mg per ml Tab 5 mg Spironolactone Oral liq 5mg per ml 23,325 317,665 $0.9200 $0.1100 $21,459 $34,943 #

32,950

$0.9400

$30,973

^ #

Thiazide and Related Diuretics

Bendrofluazide Tab 1.5 mg Tab 2.5 mg Tab 5 mg Chlorothiazide Oral liq 50 mg per ml Cyclopenthiazide Tab 0.5 mg 12,604,183 2,025,246 $0.0270 $0.0430 $340,313 $87,086 No presentation currently listed Currently available on PSO

25,075

$0.7920

$19,859

#

2,389,413

$0.0413

$98,683

Thursday, 20 December 2001

Page 21


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

CARDIOVASCULAR SYSTEM Nitrates Nitrates

Glyceryl Trinitrate Tab 600 mcg Isosorbide Dinitrate Tab 10 mg Tab 30 mg Tab sublingual 5 mg Isosorbide Mononitrate Tab long-acting 40 mg 379,481 $0.0327 $12,409 Currently available on PSO

295,136 51,275 587

$0.0413 $0.1100 $0.0370

$12,189 $5,640 $22 Sublingual tab to be delisted 1 Feb 2002

1,000,414

$0.4947

$494,871

Sympathomimetics Sympathomimetics

Isoprenaline Hydrochloride Inj 200 mcg per ml, 1 ml Metaraminol Tartrate Inj 10 mg per ml, 1 ml 370 $1.4720 $545 *

5,836

$4.2000

$24,511

Vasodilators Vasodilators

Amyl Nitrite Ampoule, 0.3 ml crushable Hydralazine Inj 20 mg per ml 1 ml Minoxidil Tab 10 mg 93 $5.2433 $488 * ^

354

$6.1000

$2,159 *

5,649

$0.6950

$3,926 *

#

No product currently listed. Figures indicate previous listing subsidy and quantity.

Oxypentifylline Tab 400 mg

82,956

$0.7389

$61,295

#

DERMATOLOGICALS Antibacterials Topical Antibacterials Topical

Chlortetracycline Oint 3% Framycetin Sulphate with Gramicidin Oint 1.5% with gramicidin 0.005% Fusidic Acid Crm 2 % Gel 2 % Oint 2 % Mupirocin Oint 2% 32,655 $0.2833 $9,252

107,895

$0.4400

$47,474 *

522,435 233,205 398,070

$0.4400 $0.4400 $0.4400

$229,871 $102,610 $175,151

# # #

1,725,690

$0.4400

$759,304

Thursday, 20 December 2001

Page 22


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

DERMATOLOGICALS

Polynoxylin Gel Silver Sulphadiazine Crm 1% with chlorhexidine digluconate 0.2% 3,030 $0.2333 $707 *

410,700

$0.0648

$26,613 *

Currently available on PSO

Antifungals Topical Antifungals Topical

Amorolfine Nail soln 5% Ciclopirox Olamine Crm 1% Nail soln 8% Soln 1% Clotrimazole Crm 1% Soln 1% Econazole Nitrate Crm 1% Ketoconazole Crm 2% Miconazole Nitrate Crm 2% Lotn 2% Tincture 2% Nystatin Crm 100,000 u per g Oint 100,000 u per g Paste 100,000 u per g Tioconazole Crm 1% Tolciclate Crm 1% Tolnaftate Crm 1% Soln 1% 3,840 $7.5720 $29,076 *

80,860 55,357 42,580

$0.0500 $10.8029 $0.2180

$4,043 * $598,014 $9,282 *

957,135 8,300

$0.0500 $0.2180

$47,857 $1,809 *

160,725

$0.0333

$5,352 *

Current subsidy not pro-rata between different pack sizes.

41,565

$0.0667

$2,771 *

1,153,075 15,960 32,670

$0.0500 $0.1453 $0.1453

$57,654 $2,320 * $4,748 *

54,255 22,395 18,930

$0.0667 $0.0667 $0.0333

$3,617 * $1,493 * $631 *

19,080

$0.0333

$636 *

68,250

$0.0333

$2,275 *

13,600 6,660

$0.0500 $0.4360

$680 * $2,904 *

Antipruritic Preparations Antipruritic Preparations

Calamine Crm, aqueous, BP Lotn, BP Crotamiton Crm 10% Lotn 10% 110,495 3,340,395 $0.0342 $0.0108 $3,779 * $36,076 *

206,140 346,512

$0.2130 $0.1512

$43,908 * $52,393 *

Thursday, 20 December 2001

Page 23


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

DERMATOLOGICALS Corticosteroids Topical Corticosteroids - Combination

Betamethasone Dipropionate with Clotrimazole Crm 0.05% with clotrimazole 1% Betamethasone Dipropionate with Salicylic Acid Lotn 0.05% with salicylic acid 2% Oint 0.05% with salicylic acid 3% Betamethasone Valerate with Clioquinol Crm 0.1% with clioquinol 3% Oint 0.1% with clioquinol 3% Betamethasone Valerate with Fusidic Acid Crm 0.1% with fusidic acid 2% Diflucortolone Valerate with Chlorquinaldol Crm 0.1% with chlorquinaldol 1% Hydrocortisone Butyrate with Chlorquinaldol Crm 0.1% with chlorquinaldol 3% Hydrocortisone with Natamycin and Neomycin Crm 1% with natamycin 1% and neomycin sulphate 0.5% Oint 1% with natamycin 1% and neomycin sulphate 0.5% 78,465 $0.3267 $25,632 *

231,700 202,770

$0.1948 $0.2700

$45,135 * $54,748 *

79,440 29,745

$0.3267 $0.3267

$25,950 $9,717

297,795

$0.3267

$97,280 *

#

44,220

$0.3267

$14,445 *

116,520

$0.3267

$38,063 *

1,336,380 454,485

$0.3267 $0.3267

$436,550 $148,465 *

Triamcinolone Acetonide with Gramicidin, Neomycin and Nystatin Crm 1 mg with nystatin 100,000 u, 121,050 $0.3267 neomycin sulphate 2.5 mg and gramicidin 250 mcg per g Oint 1 mg with nystatin 100,000 u, neomycin sulphate 2.5 mg and gramicidin 250 mcg per g 102,825 $0.3267

$39,543 *

$33,589 *

Corticosteroids - Plain

Betamethasone Dipropionate Crm 0.05% Crm 0.05% in propylene glycol base Oint 0.05% Oint 0.05% in propylene glycol base Betamethasone Valerate Crm 0.1% Lotn 0.1% Oint 0.1% Clobetasone Butyrate Crm 0.05% Oint 0.05% Diflucortolone Valerate Crm 0.1% Fatty oint 0.1% Oint 0.1% 237,900 31,680 184,885 48,330 $0.1794 $0.1443 $0.1794 $0.1443 $42,679 * $4,572 * $33,168 * $6,976 *

2,389,810 85,650 1,274,920

$0.0750 $0.2010 $0.0750

$179,236 $17,216 $95,619

689,580 385,570

$0.1613 $0.1613

$111,229 * $62,192 *

330,800 313,400 231,350

$0.1794 $0.1794 $0.1794

$59,346 * $56,224 * $41,504 *

Thursday, 20 December 2001

Page 24


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

DERMATOLOGICALS

Fluocinolone Acetonide Crm 0.025% Oint 0.025% Hydrocortisone Crm 1% Methylprednisolone aceponate Crm 0.1% Oint 0.1% Mometasone Furoate Crm 0.1% Lotn 0.1% Oint 0.1% Triamcinolone Acetonide Crm 0.02% Oint 0.02% 41,610 17,580 $0.1793 $0.1793 $7,461 $3,152

9,517,293

$0.0244

$232,222

^

348,495 332,985

$0.3300 $0.3300

$115,003 $109,885

1,965,975 471,600 1,457,655

$0.3004 $0.2000 $0.3004

$590,665 $94,320 $437,944

550,300 142,400

$0.0645 $0.0645

$35,494 * $9,185 *

Disinfecting and Cleansing Agents Disinfecting and Cleansing Agents

Chlorhexidine Gluconate Handrub 0.5% with ethanol 70% Soln 4% 2,051,171 1,224,523 $0.0114 $0.0187 $23,383 $22,899 * # #

Dusting Powders Dusting Powders

Diphemanil Methylsulphate Powder 2% 48,450 $0.1362 $6,599 * #

Emollients and Barrier Creams Barrier Creams

Zinc Cream BP Ointment BP Zinc and Castor Oil Ointment BP 149,877 95,440 $0.0131 $0.0131 $1,963 * $1,250 *

7,964,482

$0.0131

$104,335

Emollients

Aqueous Cream Aqueous cream Cetomacrogol Cream BP Emulsifying Ointment BP Emulsifying ointment BP Glycerol with Paraffin and Cetyl Alcohol Lotn 5% with paraffin liq 5% and cetyl alcohol 2% Oily Cream BP Oily cream BP 53,935,859 $0.0059 $318,222 ^

3,885,929

$0.0056

$21,761 *

17,350,863

$0.0084

$145,747

721,936

$0.0056

$4,043 *

2,045,312

$0.0056

$11,454 *

Thursday, 20 December 2001

Page 25


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

DERMATOLOGICALS

Urea Crm 10% Wool Fat with Mineral Oil Lotn hydrous 3% with mineral oil 8,769,082 $0.0280 $245,534

20,560,150

$0.0056

$115,137 *

#

Minor Skin Infections Minor Skin Infections

Povidone Iodine Alcohol skin preparation 10% Antiseptic Soln 10% Oint 10% 403,545 794,768 147,550 $0.0163 $0.0128 $0.0687 $6,562 $10,205 $10,137 # Currently, both a 25g and a 100g presentation are subsidised but not on a pro-rata basis. Only one tender will be awarded for either pack size.

Parasiticidal Preparations Parasiticidal Preparations

Gamma Benzene Hexachloride Crm 1% Malathion Liq 0.5% Maldison Crm shampoo 1% Permethrin Crm 5% Lotion 5% 159,200 $0.0640 $10,189 *

3,662,753

$0.0550

$201,451

1,172,800

$0.0715

$83,855 *

507,420 1,250

$0.1500 $0.0900

$76,113 $113 *

# #

Psoriasis and Eczema Preparations Psoriasis and Eczema Preparations

Calcipotriol Crm 50 mcg per g Oint 50 mcg per g Soln 50 mcg per ml Coal Tar Soln gel 7.5 % 886,250 1,143,520 302,670 $0.6587 $0.6587 $0.6587 $583,773 $753,237 $199,358

127,200

$0.0775

$9,858 *

Coal Tar with Allantoin, Menthol, Phenol and Sulphur Soln 5% with sulphur 0.5%, menthol 80,845 0.75%, phenol 0.5% and allantoin crm 2.5% Methoxsalen Cap 10 mg

$0.0567

$4,581 *

39,781

$0.4664

$18,554

#

Tar with Triethanolamine Lauryl Sulphate and Fluorescein Soln 2.3% with triethanolamine lauryl 34,048,392 sulphate and fluorescein sodium

$0.0042

$143,003

Thursday, 20 December 2001

Page 26


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

DERMATOLOGICALS Scalp Preparations Scalp Preparations

Betamethasone Dipropionate Scalp lotn 0.05% Scalp lotn propylene glycol base 0.05% Betamethasone Valerate Scalp app 0.1% Clobetasol Propionate Scalp app 0.05% Fluocinolone Acetonide Gel 0.02% Ketoconazole Shampoo 2% 243,700 6,570 $0.1229 $0.2667 $29,951 * $1,752 *

3,538,500

$0.0325

$115,001

344,040

$0.1330

$45,757

47,460

$0.1743

$8,274

3,058,100

$0.0525

$160,550

#

Sunscreens Sunscreens

Sunscreens, Proprietary Lotn Oint 72,875 1,988 $0.0160 $0.3571 $1,166 * $710 * # #

Wart Preparations Wart Preparations

Formaldehyde Solution Solution 37% Podophyllotoxin Soln 0.5% 175,718 $0.0170 $2,987 #

18,210

$9.1429

$166,491

#

EXTEMPORANEOUSLY COMPOUNDED PREPARATIONS & GALENICALS Extemporaneously Compounded Preparations & Galenicals Extemporaneously Compounded Preparations & Galenicals

Coal Tar Solution BP Hydrocortisone Powder Magnesium Sulphate Paste BPC Paraffin White soft Potassium Permanganate Potassium permanganate 28,853 $0.0649 $1,873 * #

13,603

$1.9148

$26,047

^ #

131,655

$0.0372

$4,898 *

1,025,088

$0.0133

$13,634

#

18,935

$0.0354

$671 *

Thursday, 20 December 2001

Page 27


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

GENITO-URINARY SYSTEM Contraceptives - hormonal Combined oral contraceptives

Ethinyloestradiol with Desogestrel Tab 20 mcg with desogestrel 150 mcg Tab 20 mcg with desogestrel 150 mcg and 7 inert tab Tab 30 mcg with desogestrel 150 mcg Tab 30 mcg with desogestrel 150 mcg and 7 inert tab Ethinyloestradiol with Gestodene Tab 20 mcg with gestodene 75 mcg and 7 inert tab Tab 30 mcg with gestodene 75 mcg Tab 30 mcg with gestodene 75 mcg and 7 inert tab Ethinyloestradiol with Norethisterone Tab 35 mcg with norethisterone 1 mg Tab 35 mcg with norethisterone 1 mg and 7 inert tab Tab 35 mcg with norethisterone 500 mcg Tab 35 mcg with norethisterone 500 mcg and 7 inert tab Tab 35 mcg with norethisterone 500 mcg and ethinyloestradiol 35 mcg with norethisterone 1 mg and 7 inert tab Levonorgestrel with Ethinyloestradiol Tab 100 mcg with ethinyloestradiol 20 mcg and 7 inert tab Tab 125 mcg with ethinyloestradiol 50 mcg and 7 inert tab 28 Tab 150 mcg with ethinyloestradiol 30 mcg Tab 150 mcg with ethinyloestradiol 30 mcg and 7 inert tab Tab 250 mcg with ethinyloestradiol 50 mcg Tab 250 mcg with ethinyloestradiol 50 mcg and 7 inert tab Tab 50 mcg with ethinyloestradiol 30 mcg and levonorgestrel 75 mcg with ethinyloestradiol 40 mcg, and levonorgestrel 125 mcg and ethinyloestradiol 30 mcg and 7 inert tab Tab 50 mcg with ethinyloestradiol 30 mcg and levonorgestrel 75 mcg with ethinyloestrdiol 40 mcg, and levonorgestrel 125 mcg and ethinyloestradiol 30 mcg Tab 50 mcg with ethinyloestradiol 50 mcg and levonorgestrel 125 mcg with ethinyloestradiol 50 mcg and 7 inert tab 510,189 3,839,635 526,706 2,646,671 $0.1500 $0.1125 $0.1500 $0.1125 $76,528 * $431,959 * $79,006 * $297,750 * Currently an additional subsidy is available for some patients. Currently an additional subsidy is available for some patients. Currently an additional subsidy is available for some patients. Currently an additional subsidy is available for some patients.

19,240 528,766 3,332,473

$0.1125 $0.1500 $0.1125

$2,165 * $79,315 * $374,903 *

Currently available on PSO. Additional subsidy for some patients. Additional subsidy for some patients.

102,546 651,266 108,073 7,291,587 83,386

$0.1500 $0.1125 $0.1500 $0.1125 $0.1125

$15,382 * $73,267 * $16,211 * $820,304 $9,381

Currently available on PSO. Currently available on PSO. Currently available on PSO. Currently available on PSO.

6,578,519 518,219 1,050,305 18,245,174 22,942 54,805 4,181,138

$0.1125 $0.1125 $0.1500 $0.1125 $0.1500 $0.1125 $0.1125

$740,083 * $58,300 $157,546 * $2,052,582 $3,441 * $6,166 * $470,378

Currently available on PSO. Currently available on PSO. Currently available on PSO. Currently available on PSO. Currently available on PSO. Currently available on PSO.

310,877

$0.1500

$46,632 *

73,458

$0.1125

$8,264 *

Currently available on PSO.

Thursday, 20 December 2001

Page 28


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

GENITO-URINARY SYSTEM

Norethisterone with Mestranol Tab 1 mg with mestranol 50 mcg Tab 1 mg with mestranol 50 mcg and 7 inert tab Norgestrel with Ethinyloestradiol Tab 500 mcg with ethinyloestradiol 50 mcg 37,848 115,086 $0.1500 $0.1125 $5,677 * $12,947 * Currently available on PSO. Currently available on PSO.

51,836

$0.1500

$7,775 *

Currently available on PSO.

Emergency contraceptives

Levonorgestrel Tab 750 mcg 190,859 $2.2500 $429,433 ^ # Currently available on PSO.

Progestogen-only contraceptives

Ethynodiol Diacetate Tab 500 mcg Levonorgestrel Tab 30 mcg Norethisterone Tab 350 mcg 6,728,958 $0.1125 $757,008 Currently available on PSO.

1,396,208

$0.1036

$144,607 *

Currently available on PSO.

1,705,680

$0.1036

$176,659 *

Currently available on PSO.

Contraceptives - non-hormonal Contraceptive Devices

Diaphragm Diaphragm 1,987 $30.2300 $60,067 All sizes of both coil and spring types must be made available. Currently available on PSO.

Spermicidal Agents

Di-isobutylphenoxypolyethoxy-ethanol Jelly 1% Nonoxynol 9 Pessary 275,175 $0.0775 $21,317 * Currently available on PSO. With or without applicator(s).

2,376

$0.5633

$1,338

Currently available on PSO

Gynaecological anti-infectives Gynaecological anti-infectives

Acetic Acid with Boric Acid, Hydroxyquinoline and Ricinoleic Acid Jelly with boric acid 3%, hydroxyquinoline 303,800 $0.0843 sulphate 0.025% and ricinoleic acid 0.75% with applicator Econazole Nitrate Pessaries150 mg with applicators Vaginal crm 1 % with applicator(s) Isoconazole Nitrate Pessaries 600 mg with applicator Miconazole Nitrate Vaginal crm 2% with applicator Nystatin Vaginal crm 100,000 u per 5 g with applicator(s) Tioconazole Pessaries 100 mg with applicator 5,808 66,640 $0.9167 $0.0688 $25,610 *

$5,324 * $4,582 *

1,342

$2.7500

$3,691 *

348,500

$0.0688

$23,977

120,225

$0.0587

$7,053 *

98

$0.9167

$90 *

Thursday, 20 December 2001

Page 29


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

GENITO-URINARY SYSTEM

Tioconazole Vaginal oint 6.5% with applicator 17,407 $0.5978 $10,406 *

Myometrial and vaginal hormone preparations Myometrial and vaginal hormone preparations

Ergometrine Maleate Inj 500 mcg per ml, 1 ml Oestriol Crm 1 mg per g with applicator Pessaries 500 mcg Oestrogens Conjugated, equine vaginal crm 625 mcg per g with applicator Oxytocin Inj 10 iu per ml, 1 ml Inj 5 iu per ml, 1 ml Inj 5 iu with ergometrine maleate 500 mcg per ml, 1 ml 2,891 $2.3200 $6,707 * ^ Currently available on PSO.

575,670 182,128

$0.4667 $0.4833

$268,646 $88,028

528,841

$0.1527

$80,757

2,236 936 1,928

$1.0000 $0.8000 $1.3600

$2,236 * ^ $749 * ^ $2,622 * ^

Currently available on PSO Currently available on PSO Currently available on PSO

Pregnancy tests - HCG urine Pregnancy tests - HCG urine

Pregnancy Tests - HCG Urine 25 401,300 $1.7500 $702,275 Currently available on WSO

Urinary Agents Alpha-Adrenoceptor Blockers

Phenoxybenzamine Cap 10 mg 78,021 $0.2605 $20,324

Other Urinary Agents

Emepronium Carrageenate Tab 200 mg Oxybutynin Oral liq 5 mg per 5 ml Tab 5 mg Sodium Citro-Tartrate Grans effervescent 4 g sachets 24,005 $0.2770 $6,649 * # Currently listed brand to be delisted 1 January 2002.

385,233 3,993,610

$0.0471 $0.0938

$18,144 $374,601

1,070,161

$0.1280

$136,981 *

INFECTIONS - AGENTS FOR SYSTEMIC USE Anthelmintics Anthelmintics

Mebendazole Oral liq 100 mg per 5 ml Tab 100 mg Pyrantel Embonate Oral liq 50 mg per ml Tab 125 mg 67,130 16,411 $0.1453 $0.6316 $9,756 $10,365

7,674 1,018

$0.1680 $0.2950

$1,289 $300

Thursday, 20 December 2001

Page 30


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

INFECTIONS - AGENTS FOR SYSTEMIC USE

Pyrantel Embonate Tab 250 mg 1,202 $0.6267 $753

Antibacterials Cephalosporins and Cephamycins

Cefamandole Nafate Inj 1 g Ceftriaxone Sodium Inj 1 g Inj 250 mg Inj 500 mg Cefuroxime Sodium Inj 250 mg Inj 750 mg Cephalexin Monohydrate Cap 250 mg Grans for oral liq 125 mg per 5 ml Grans for oral liq 250 mg per 5 ml Tab 500 mg Cephazolin Sodium Inj 1 g Inj 500 mg Cephradine Cap 250 mg Cap 500 mg Inj 1 g Inj 500 mg 38 $7.2000 $274 #

18 23 5

$33.9320 $9.5240 $17.6020

$611 $219 $88

# # #

35 2

$2.0970 $6.1670

$73 $12

# #

15,656 43,151 32,212 51,505

$0.3457 $0.0824 $0.1148 $0.6814

$5,412 $3,556 $3,698 $35,096

# # # #

5,331 722

$6.9360 $3.3800

$36,976 $2,440

# #

8,442 21,036 5 84

$0.4654 $0.9188 $6.3180 $3.3560

$3,929 $19,327 $32 $282

# # # #

Macrolides

Azithromycin Tab 500 mg Erythromycin Tab 250 mg or Cap 250 mg Erythromycin Ethyl Succinate Grans for oral liq 200 mg per 5 ml Grans for oral liq 400 mg per 5 ml Tab 400 mg Erythromycin Lactobionate Inj 1g Inj 300 mg Erythromycin Stearate Tab 250 mg or Cap 250 mg Tab 500 mg 28,046 $7.7650 $217,777 #

240,162

$0.1495

$35,904 *

Currently available on PSO

8,770,550 3,626,807 2,716,594

$0.0275 $0.0499 $0.1499

$241,190 $180,978 $407,217

Currently available on PSO Currently available on PSO Currently available on PSO

333 65

$10.5700 $5.3400

$3,520 $347

173,768 143,688

$0.1495 $0.2990

$25,978 * $42,963 *

Currently available on PSO

Thursday, 20 December 2001

Page 31


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

INFECTIONS - AGENTS FOR SYSTEMIC USE

Roxithromycin Tab 150 mg Tab 300 mg 560,149 234,982 $0.2990 $0.5980 $167,485 $140,519

Other Antibiotics

Chloramphenicol Cap 250 mg Ciprofloxacin Tab 250 mg Tab 500 mg Tab 750 mg Clindamycin Cap hydrochloride 150 mg Inj phosphate 150 mg per ml 4 ml Colistin Sulphomethate Inj 150 mg Co-Trimoxazole Oral liq sugar-free trimethoprim 40 mg and sulphamethoxazole 200 mg per 5 ml Tab trimethoprim 160 mg and sulphamethoxazole 800 mg Tab trimethoprim 80 mg and sulphamethoxazole 400 mg Fusidic Acid Oral liq 250 mg per 5 ml Tab 250 mg Gentamicin Sulphate Inj 10 mg per ml, 1 ml Inj 10 mg per ml, 2 ml Inj 40 mg per ml, 2 ml Neomycin Sulphate Tab 500 mg Tobramycin Inj 40 mg per ml, 1 ml Inj 40 mg per ml, 2 ml Trimethoprim Tab 100 mg Tab 300 mg 4,105 $0.3788 $1,555 #

158,720 677,777 67,565

$1.7200 $3.0957 $4.9343

$272,998 $2,098,204 $333,385

# # #

120,351 309

$0.7138 $14.2800

$85,901 $4,413 *

# #

6,468

$30.3400

$196,239

#

13,165,095 6,026 2,217,597

$0.0159 $0.2266 $0.0456

$209,325 $1,365 $101,122

Currently available on PSO

Currently available on PSO

4,555 32,538

$0.5572 $2.8750

$2,538 $93,547

# #

111 819 7,222

$1.2000 $3.2000 $1.0000

$133 * ^ # $2,621 * ^ # $7,222 ^ #

13,392

$0.3980

$5,330

#

389 21,404

$4.6600 $4.9500

$1,813 $105,950

# #

Currently listed product to be delisted April 2002.

761,984 418,595

$0.1665 $0.1300

$126,870 $54,417 Currently available on PSO.

Penicillins

Amoxycillin Drops 125 mg per 1.25 ml Inj 1 g Inj 250 mg Inj 500 mg 348,940 4,630 924 3,354 $0.3750 $3.1320 $1.6860 $2.2120 $130,853 * ^ $14,501 $1,558 $7,419 ^ ^ ^

Thursday, 20 December 2001

Page 32


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

INFECTIONS - AGENTS FOR SYSTEMIC USE

Amoxycillin Sachets 3 g Amoxycillin Clavulanate Grans for oral liq 125 mg with potassium clavulanate 31.25 mg per 5 ml Grans for oral liq 250 mg with potassium clavulante 62.5 mg per 5 ml Tab 500 mg with potassium clavulanate 125 mg Benzathine Penicillin Inj 1.2 mega u per 2 ml Benzylpenicillin Sodium (Penicillin G) Inj 1 mega u Dicloxacillin Cap 250 mg Cap 500 mg Inj 1 g Inj 500 mg Oral liq 125 mg per 5 ml Oral liq 62.5 mg per 5 ml Flucloxacillin Magnesium Grans for oral liq 125 mg per 5 ml Grans for oral liq 250 mg per 5 ml Procaine Penicillin Inj 1.5 mega u 3,651 $3.3600 $12,267 * ^

15,980,970 12,587,662 9,711,843

$0.0292 $0.0495 $0.3247

$466,644 $623,089 $3,153,435 Currently available on PSO

6,968

$11.2000

$78,042

^

Currently available on PSO

13,062

$1.3800

$18,026

^

Currently available on PSO

230,041 417,781 90 95 565,423 65,159

$0.1029 $0.1596 $2.0400 $1.3600 $0.0355 $0.0177

$23,675 * $66,671 * $184 * $129 * $20,073 * $1,153 *

4,472,073 3,971,629

$0.0355 $0.0600

$158,759 $238,298

Currently available on PSO Currently available on PSO

5,599

$9.5200

$53,302

Currently available on PSO

Tetracyclines

Doxycycline Hydrochloride Tab 50 mg Minocycline Hydrochloride Cap 100 mg Tab 50 mg Tetracycline Hydrochloride Cap 250 mg 640,354 $0.0967 $61,901 * Currently available on PSO

1,107,573 2,214,006

$0.1932 $0.0965

$213,983 * $213,652 *

610,431

$0.0902

$55,061 *

Antimalarials Antimalarials

Chloroquine Oral liq sulphate 68 mg per 5 ml Tab sulphate 200 mg Hydroxychloroquine Sulphate Tab 200 mg 28,892 25,425 $0.0969 $0.1696 $2,800 * $4,313 *

1,113,637

$0.2826

$314,714

Thursday, 20 December 2001

Page 33


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

INFECTIONS - AGENTS FOR SYSTEMIC USE Antiretrovirals Non-nucleosides reverse transcriptase inhibitors

Nevirapine Tab 200 mg 57,314 $5.3300 $305,484 ^ #

Nucleosides reverse transcriptase inhibitors

Abacavir Sulphate Tab 300 mg 9,628 $7.6333 $73,494 ^ #

Antitrichomonal Agents Antitrichomonal Agents

Metronidazole Oral liq benzoate 200 mg per 5 ml Suppos 1 g Suppos 500 mg Tab 200 mg Tab 400 mg Tinidazole Tab 500 mg 341,427 4,775 3,451 211,180 456,900 $0.1781 $2.7530 $2.0230 $0.0899 $0.1699 $60,808 * $13,146 $6,981 $18,985 $77,627 #

92,763

$1.0418

$96,636

Antituberculotics and Antileprotics Antituberculotics and Antileprotics

Clofazimine Cap 50 mg Dapsone Tab 100 mg 8,302 $0.1800 $1,494

27,464

$0.0710

$1,950

Current brand delisted 1 Dec 2001. Additional market being sourced through Exceptional Circumstances.

Ethambutol Tab 100 mg Tab 400 mg Isoniazid Tab 100 mg Pyrazinamide Tab 500 mg Rifampicin Cap 150 mg Cap 300 mg Oral liq 100 mg per 5 ml Tab 600 mg Rifubutin Cap 150 mg

37,749 83,758

$0.2080 $0.4080

$7,852 $34,173

# #

321,890

$0.2100

$67,597

^ #

100,344

$0.4469

$44,844

^ #

41,652 72,943 158,673 19,291

$0.5866 $1.2236 $0.2110 $3.8133

$24,433 $89,253 $33,480 $73,563

^ # ^ # ^ # ^ #

9,558

$6.3167

$60,375

#

Thursday, 20 December 2001

Page 34


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

INFECTIONS - AGENTS FOR SYSTEMIC USE Urinary Tract Infections Urinary Tract Infections

Hexamine Hippurate Tab 1 g Nitrofurantoin Oral liq 25 mg per 5 ml Tab 100 mg Tab 50 mg 132,384 $0.1840 $24,359

373,677 159,419 1,026,560

$0.0625 $0.2315 $0.1325

$23,355 $36,905 $136,019

MUSCULO-SKELETAL SYSTEM Anticholinesterases Anticholinesterases

Distigmine Bromide Tab 5 mg 10,666 $1.7436 $18,597 # No brand currently listed. Subsidy and market volumes indicative of previous levels.

Pyridostigmine Bromide Tab 60 mg

317,814

$0.2167

$68,870

^

Anti-inflammatory Non Steroidal Drugs (NSAIDs) Anti-inflammatory Non Steroidal Drugs (NSAIDs)

Ibuprofen Oral liq 100 mg per 5 ml Tab 200 mg Tab 400 mg Tab 600 mg Tab long-acting 800 mg Ketoprofen Cap 50 mg Cap long-acting 100 mg Cap long-acting 200 mg Suppos 100 mg Tab EC 100 mg Mefenamic Acid Cap 250 mg Naproxen Oral liq 125 mg per 5 ml Tab 250 mg Tab 500 mg Tab EC 250 mg Tab EC 500 mg Tab long-acting 1000 mg 10,403,007 2,767,405 1,093,999 238,878 3,491,740 $0.0290 $0.0290 $0.0355 $0.0532 $0.0502 $301,167 $80,255 $38,837 * $12,708 * $175,167 * # # # # #

20,530 347,940 600,092 21,710 149,280

$0.0532 $0.0672 $0.1344 $0.4710 $0.0672

$1,092 * $23,382 * $80,652 * $10,225 $10,032 *

# # # # #

290,715

$0.0250

$7,268 *

#

68,559 2,679,837 5,631,888 879,982 2,665,985 477,092

$0.0329 $0.0600 $0.1200 $0.0722 $0.1467 $0.2931

$2,257 $160,790 $675,827 $63,505 $391,009 $139,841

# # # # # # 250mg Tab and 250mg Tab EC are one line item 500mg Tab and 500mg Tab EC are one line item 250mg Tab and 250mg Tab EC are one line item 500mg Tab and 500mg Tab EC are one line item

Thursday, 20 December 2001

Page 35


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

MUSCULO-SKELETAL SYSTEM

Naproxen Tab long-acting 750 mg Naproxen Sodium Tab 275 mg Tab 550 mg Sulindac Tab 100 mg Tab 200 mg Tenoxicam Inj 10 mg per ml, 2 ml Suppos 20 mg Tiaprofenic Acid Cap long-acting 300 mg Tab 200 mg Tab 300 mg 523,550 $0.2572 $134,668 #

1,050,882 1,894,016

$0.0640 $0.1280

$67,256 $242,434

# #

345,962 354,483

$0.0532 $0.0876

$18,405 * $31,053 *

# #

67,964 24,128

$2.0000 $0.5300

$135,928 $12,788

# #

Currently available on PSO

820,749 109,789 320,785

$0.0673 $0.0448 $0.0672

$55,254 * $4,919 * $21,557 *

# # #

NSAIDs Other

Indomethacin Cap 25 mg Cap 50 mg Cap long-acting 75 mg Suppos 100 mg 430,815 862,299 682,086 80,708 $0.0398 $0.0650 $0.1030 $0.2163 $17,146 $56,049 $70,255 $17,457

Antirheumatoid Agents Antirheumatoid Agents

Auranofin Tab 3 mg Penicillamine Tab 125 mg Tab 250 mg Sodium Aurothiomalate Inj 10 mg per 0.5 ml Inj 20 mg per 0.5 ml Inj 50 mg per 0.5 ml 43,109 $1.1498 $49,568 * #

55,036 117,236

$0.5630 $0.8998

$30,985 * $105,489 *

# #

321 317 5,604

$6.9880 $10.2880 $19.7480

$2,243 * $3,261 * $110,668 *

# # #

Corticosteroids - Injectibles Corticosteroids - Injectibles

Methylprednisolone Acetate Inj 40 mg per ml with lignocaine 1 ml Inj 40 mg per ml, 1 ml Methylprednisolone Sodium Succinate Inj 1 g Inj 500 mg Inj 62.5 mg per ml, 2 ml 2,040 3,530 $6.0300 $6.0300 $12,301 $21,286

146 144 1,137

$80.0000 $45.0000 $16.5776

$11,680 $6,480 $18,849

^ # ^ # ^ #

Thursday, 20 December 2001

Page 36


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

MUSCULO-SKELETAL SYSTEM

Triamcinolone Acetonide Inj 10 mg per ml, 1 ml Inj 10 mg per ml, 5 ml Inj 40 mg per ml, 1 ml Inj 40 mg per ml, 5 ml 3,241 302 73,214 244 $2.6940 $12.5000 $6.8100 $28.4100 $8,731 $3,775 $498,587 $6,932

Enzymes Enzymes

Hyaluronidase Inj 1,500 iu per ml 873 $1.8320 $1,599 *

Hyperuricaemia and Antigout Hyperuricaemia and Antigout

Colchicine Tab 600 mcg Sulphinpyrazone Tab 100 mg Tab 200 mg 2,269,266 $0.0685 $155,445 *

97,216 65,494

$0.2800 $0.4923

$27,220 $32,243

Currently listed brand to be delisted 1 Jan 2002 Currently listed brand to be delisted 1 Jan 2002

Muscle Relaxants Muscle Relaxants

Dantrolene Sodium Cap 25 mg Cap 50 mg Orphenadrine Citrate Inj 30 mg per ml, 2 ml Tab 100 mg 123,106 46,615 $0.3296 $0.5170 $40,576 $24,100 # #

202 1,059,496

$3.2000 $0.1854

$646 * $196,431

NERVOUS SYSTEM Anaesthetics Local

Bupivacaine Hydrochloride Inj 0.5%, 4 ml Inj 0.5%, 8% glucose, 4 ml Lignocaine Hydrochloride Inj 0.5% polyamp 5 ml vial Inj 1% 20 ml vial Inj 1% 50 ml vial Lignocaine with Prilocaine Hydrochloride Crm 2.5% with prilocaine hydrochloride 2.5% Crm 2.5% with prilocaine hydrochloride 2.5% 5 g 479 300 $4.6640 $5.4820 $2,234 * $1,645 * # #

5,368 869 161

$1.1358 $4.7400 $7.0400

$6,097 $4,119 * $1,133 *

# # #

Currently available on PSO. Currently available on PSO. Currently available on PSO.

1,200 1,517

$1.5340 $9.5100

$1,841 $14,427

# #

Thursday, 20 December 2001

Page 37


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

NERVOUS SYSTEM Analgesics Antipyretics and Non-Opioid Analgesics

Aspirin Tab EC 300 mg Tab EC 650 mg Nefopam Hydrochloride Inj 20 mg per ml, 1 ml Tab 30 mg Paracetamol Oral liq 120 mg per 5 ml Oral liq 250 mg per 5 ml Suppos 125 mg Suppos 250 mg Suppos 500 mg Tab 500 mg 2,090,245 173,881 $0.0725 $0.0688 $151,543 $11,963

2,199 2,024,227

$1.8200 $0.2599

$4,002 * $526,097

106,264,521 64,810,651 68,905 40,444 184,884 83,419,237

$0.0081 $0.0081 $0.1680 $0.3100 $0.4500 $0.0110

$860,743 $524,966

^ ^

Currently available on PSO

$11,576 * ^ $12,538 * ^ $83,198 * ^ $917,612 ^ Currently available on PSO

Antipyretics with Codeine

Paracetamol with Codeine Tab paracetamol 500 mg with codeine phosphate 8 mg 16,763,314 $0.0340 $569,953

Opioid Analgesics

Dextromoramide Acid Tartrate Tab 5 mg Dextropropoxyphene Cap napsylate 100 mg Dextropropoxyphene with Paracetamol Cap hydrochloride 32.5 mg with paracetamol 325 mg Tab napsylate 50 mg with paracetamol 325mg Morphine Hydrochloride Oral liq 1 mg per ml Oral liq 10 mg per ml Oral liq 2 mg per ml Oral liq 5 mg per ml Morphine Tartrate Inj 80 mg per ml 5 ml Inj 80 mg per ml, 1.5 ml Oxycodone Pectinate Suppos 30 mg Pethidine Hydrochloride Inj 50 mg per ml, 1 ml Inj 50 mg per ml, 2 ml Tab 100 mg 1,308 $0.6180 $808 #

579,976

$0.0896

$51,966 *

1,814,695 31,137,529

$0.0398 $0.0290

$72,261 * $902,988

3,970,411 509,533 1,355,762 777,732

$0.0480 $0.0750 $0.0510 $0.0575

$190,580 $38,215 $69,144 $44,720

^ # ^ # ^ # ^ #

5,460 46,838

$13.4740 $4.0400

$73,568 $189,226

# #

40,977

$0.9717

$39,816 *

#

28,534 100,342 139,969

$0.6800 $0.7600 $0.6500

$19,403 $76,260 $90,980

# # #

Thursday, 20 December 2001

Page 38


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

NERVOUS SYSTEM

Pethidine Hydrochloride Tab 50 mg Tramadol Cap 50 mg Inj 50 mg per ml, 1 ml Inj 50 mg per ml, 2 ml 268,563 $0.4500 $120,853 #

4,725 0 1,320

$0.0000 $0.0000 $0.0000

$0 $0 $0

No product currently listed No product currently listed No product currently listed

Antidepressants Cyclic and Related Agents

Amitriptyline Tab 10 mg Tab 25 mg Tab 50 mg Amoxapine Tab 100 mg Tab 25 mg Tab 50 mg Clomipramine Hydrochloride Tab 10 mg Desipramine Hydrochloride Tab 25 mg Dothiepin Hydrochloride Cap 25 mg Tab 75 mg Doxepin Hydrochloride Cap 10 mg Cap 25 mg Cap 50 mg Cap 75 mg Imipramine Hydrochloride Tab 10 mg Tab 25 mg Maprotiline Hydrochloride Tab 25 mg Tab 75 mg Mianserin Hydrochloride Tab 30 mg Nortriptyline Hydrochloride Tab 10 mg Tab 25 mg Trimipramine Maleate Cap 25 mg or Tab 25 mg Cap 50 mg 5,569,778 5,759,560 1,501,155 $0.0249 $0.0259 $0.0698 $138,687 $149,173 $104,781 ^ ^ ^

67,291 159,414 193,557

$0.4895 $0.1750 $0.2600

$32,939 $27,897 $50,325

482,416

$0.1750

$84,423

#

240,144

$0.6464

$155,229

#

4,768,312 1,640,787

$0.0450 $0.0875

$214,574 $143,569

1,632,451 2,820,028 785,056 441,029

$0.0499 $0.0419 $0.0699 $0.1099

$81,459 $118,159 $54,875 $48,469

594,048 1,763,478

$0.0995 $0.1038

$59,108 $182,961

157,711 36,225

$0.3388 $0.9487

$53,432 $34,365

# #

47,371

$0.9750

$46,187

#

1,303,823 4,444,824

$0.0480 $0.0937

$62,584 $416,480

1,174,872 696,935

$0.0791 $0.1584

$92,932 $110,395

Thursday, 20 December 2001

Page 39


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

NERVOUS SYSTEM Monoamine-Oxidase Inhibitors (MAOIs) - Non Selective

Phenelzine Sulphate Tab 15 mg Tranylcypromine Sulphate Tab 10 mg 237,490 $0.2980 $70,772

238,752

$0.4588

$109,539

Selective Serotonin Reuptake Inhibitors

Citalopram hydrobromide Tab 20 mg Nefazodone Tab 100 mg Tab 200 mg 3,692,895 $0.0564 $208,383 * #

556,377 422,023

$0.0254 $0.0332

$14,132 * $14,017 *

# #

Anti-Epilepsy Drugs Agents for Control of Status Epilepticus

Clonazepam Inj 1 mg per ml, 1 ml Diazepam Inj 5 mg per ml, 2 ml Rectal tubes 10 mg Rectal tubes 5 mg Phenobarbitone Sodium Inj 200 mg per ml, 1 ml 11,630 $1.8720 $21,771

7,586 15,103 20,104

$1.6640 $6.4760 $5.3000

$12,623 $97,807 $106,551

Currently available on PSO. Currently available on PSO. Currently available on PSO.

371

$7.3920

$2,742

Control of Epilepsy

Clobazam Tab 10 mg Clonazepam Oral drops 2.5 mg per ml Tab 2 mg Tab 500 mcg Phenobarbitone Tab 15 mg Tab 30 mg 741,723 $0.1658 $122,978 * #

40,030 817,695 3,996,174

$0.7380 $0.1858 $0.0985

$29,542 $151,928 $393,623

161,672 1,056,610

$0.0474 $0.0492

$7,657 $51,964

Antimigraine Preparations Acute Migraine Treatment

Ergotamine Tartrate with Caffeine Tab 1 mg with caffeine 100 mg Ergotamine Tartrate with Diphenhydramine Cap 1 mg with caffeine citrate 100 mg and diphenhydramine hydrochloride 25 mg Metoclopramide Hydrochloride Tab 5 mg with paracetamol 500 mg 432,963 $0.2420 $104,777

227,184

$0.1762

$40,030

1,081,780

$0.1167

$126,207

Prophylaxis of Migraine

Clonidine Hydrochloride Tab 25 mcg 2,325,549 $0.1726 $401,390

Thursday, 20 December 2001

Page 40


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

NERVOUS SYSTEM

Pizotifen Tab 500 mcg 2,067,763 $0.2110 $436,298

Antinausea and Vertigo Agents Antinausea and Vertigo Agents

Betahistine Dihydrochloride Tab 16 mg Cyclizine Hydrochloride Tab 50 mg Dimenhydrinate Tab 50 mg Domperidone Tab 10 mg Hyoscine (Scopolamine) Patches, 1.5 mg Hyoscine Hydrobromide Inj 400 mcg per ml, 1 ml Metoclopramide Hydrochloride Inj 5 mg per ml 2 ml Oral liq 5 mg per 5 ml Tab 10 mg Prochlorperazine Inj 12.5 mg per ml, 1 ml Suppos 25 mg Suppos 5 mg Tab 3 mg buccal 895,612 $0.1749 $156,643 #

348,446

$0.1260

$43,904 *

#

48,689

$0.0585

$2,848

2,295,989

$0.0390

$89,544

#

4,541

$4.7800

$21,706 *

#

2,574

$1.2000

$3,089

199,441 1,089,693 3,153,959

$0.6000 $0.0274 $0.0300

$119,665 $29,858 $94,619

Currently available on PSO

47,947 34,880 22,807 212,556

$1.4910 $2.5080 $1.9030 $0.1194

$71,489 * $87,479 * $43,402 * $25,379 *

Currently available on PSO.

Antiparkinson Agents Anticholinergics

Benztropine Mesylate Inj 1 mg per ml, 2 ml Tab 2 mg Orphenadrine Hydrochloride Tab 50 mg Procyclidine Hydrochloride Tab 5 mg 1,538 1,248,208 $7.2700 $0.0560 $11,181 $69,900 #

615,138

$0.1277

$78,565

705,965

$0.0740

$52,241

Dopamine Agonists and Related Agents

Amantadine Hydrochloride Cap 100 mg Apomorphine Hydrochloride Inj 10 mg per ml 1 ml Bromocriptine Mesylate Tab 10 mg Tab 2.5 mg 253,210 $0.9637 $244,010 * #

11,493

$10.0860

$115,918

^ #

63,236 586,141

$1.3474 $0.3613

$85,204 $211,773

Thursday, 20 December 2001

Page 41


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

NERVOUS SYSTEM

Lisuride Hydrogen Maleate Tab 200 mcg Pergolide Tab 0.25 mg Tab 1 mg 124,496 $0.9167 $114,121

273,538 38,664

$0.7475 $2.9900

$204,470 $115,605

# #

Antipsychotics Depot Injections

Flupenthixol Decanoate Inj 100 mg per ml, 1 ml Inj 20 mg per ml, 1 ml Inj 20 mg per ml, 2 ml Fluphenazine Decanoate Inj 100 mg per ml, 1 ml Inj 12.5 mg per 0.5 ml, 0.5 ml Inj 25 mg per ml, 1 ml Haloperidol Decanoate Inj 100 mg per ml, 1 ml Inj 50 mg per ml, 1 ml Pipothiazine Palmitate Inj 50 mg per ml, 1 ml Inj 50 mg per ml, 2 ml 9,325 9,915 10,294 $8.1740 $2.6280 $4.1800 $76,223 $26,057 $43,029 ^ # ^ # ^ # Currently available on PSO. Currently available on PSO. Currently available on PSO.

5,299 5,395 13,768

$33.6000 $5.8000 $9.7500

$178,046 $31,291 $134,238

^ # ^ # ^ #

Currently available on PSO Currently available on PSO Currently available on PSO

9,312 7,608

$11.1800 $5.6780

$104,108 $43,198

^ # ^ #

Currently available on PSO. Currently available on PSO.

4,631 1,434

$16.2250 $32.1200

$75,138 $46,060

^ # ^ #

Currently available on PSO. Currently available on PSO.

Anxiolytics Anxiolytics

Alprazolam Tab 0.25 mg Tab 0.5 mg Tab 1 mg Chlordiazepoxide Hydrochloride Cap 5 mg Oxazepam Tab 10 mg Tab 15 mg Tab 30 mg 303,832 240,033 71,042 $0.0477 $0.0954 $0.1908 $14,493 * $22,899 * $13,555 * # # #

99,162

$0.0477

$4,730

#

1,200,740 470,772 116,171

$0.0198 $0.0245 $0.0648

$23,775 * $11,534 * $7,528 * Currently listed brand delisted 1 Dec 2001

Other CNS Agents Other CNS Agents

Dexamphetamine Sulphate Tab 5 mg Disulfiram Tab 200 mg Methylphenidate Hydrochloride Tab long-acting 20 mg 635,605 $0.1900 $120,765 #

147,286

$0.2430

$35,790 # √

984,620

$0.7500

$738,465

Thursday, 20 December 2001

Page 42


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

NERVOUS SYSTEM

Tetrabenazine Tab 25 mg 87,536 $1.4375 $125,833

Sedatives and Hypnotics Sedatives and Hypnotics

Chlormethiazole Edisylate Cap 192 mg Oral liq 250 mg per 5 ml Lormetazepam Tab 1 mg Midazolam Inj 1 mg per ml, 5 ml Inj 5 mg per ml, 3 ml Tab 7.5 mg Nitrazepam Tab 5 mg Temazepam Cap 10 mg Cap 20 mg Triazolam Tab 0.125 mg Tab 0.250 mg Zopiclone Tab 7.5 mg 291,508 100,527 $0.2104 $0.0563 $61,333 * $5,656 * #

100,307

$0.1037

$10,398 *

#

792 12,074 355,244

$2.2600 $4.8500 $0.1038

$1,790 $58,559 $36,874 *

# # #

1,166,597

$0.0200

$23,332 *

#

2,383,952 1,338,096

$0.0316 $0.0525

$75,333 $70,250

# #

2,277,508 2,208,184

$0.0276 $0.0276

$62,859 $60,946

# #

6,343,063

$0.0933

$591,808

#

ONCOLOGY AGENTS AND IMMUNOSUPPRESSANTS Chemotherapeutic Agents Alkylating Agents

Busulphan Tab 2 mg Chlorambucil Tab 2 mg Tab 5 mg Cyclophosphamide Tab 50 mg Melphalan Tab 2 mg Tab 5 mg 8,233 $0.4789 $3,943 ^ #

43,102 44,533

$0.8940 $1.3272

$38,533 $59,104

^ # ^ #

139,453

$0.5200

$72,516

^ # ^ # √ ^ # √

8,441 7,372

$1.2524 $2.0280

$10,572 $14,950

Antimetabolites

Calcium Folinate Tab 15 mg Fluorouracil Sodium Crm 5% Inj 250 mg per 10 ml 2,092 $3.8900 $8,138 #

121,900 70

$1.1945 $3.6480

$145,610 $255

# #

Thursday, 20 December 2001

Page 43


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

ONCOLOGY AGENTS AND IMMUNOSUPPRESSANTS

Mercaptopurine Tab 10 mg Tab 50 mg Methotrexate Tab 10 mg Tab 2.5 mg 40,142 50,917 $0.4073 $1.8824 $16,350 $95,846 ^ # √ ^ # √ ^ # √ ^ # √

51,919 964,326

$0.8200 $0.2050

$42,574 $197,687

Endocrine Therapy Hormones and Related Agents

Aminoglutethimide Tab 250 mg Octreotide (somatostatin analogue) Inj 100 mcg per ml, 1 ml Inj 50 mcg per ml, 1 ml Inj 500 mcg per ml, 1 ml Inj long-acting 10 mg, pre-filled syringe Inj long-acting 20 mg, pre-filled syringe 12,926 $2.4410 $31,552 #

24,518 3,832 2,253

$16.2000 $8.7000 $79.8000

$397,192 $33,338 $179,789 $72,673 $455,239

^ # ^ # ^ # ^ # ^ #

41$1,772.5000 193$2,358.7500

RESPIRATORY SYSTEM AND ALLERGIES Anti-allergy Preparations Anti-allergy Preparations

Adrenaline Inj 1 in 10,000, 10 ml Inj 1 in 1000, 1 ml 4,532 36,801 $2.5000 $0.9900 $11,330 $36,433 ^ ^ Currently available on PSO Currently available on PSO

Antihistamines Antihistamines

Azatadine Maleate Oral liq 500 mcg per 5 ml Tab 1 mg Cetirizine Hydrochloride Tab 10 mg Chlorpheniramine Maleate Cap long-acting 12 mg Cap long-acting 8 mg Oral liq 2 mg per 5 ml Cyproheptadine Hydrochloride Tab 4 mg Dextrochlorpheniramine Maleate Oral liq 2 mg per 5 ml Tab 2 mg Tab long-acting 6 mg Ketotifen Oral liq 1 mg per 5 ml 222,628 486,004 $0.0227 $0.1388 $5,054 * $67,457 *

1,117,832

$0.4350

$486,257 *

263,920 461,726 4,504,588

$0.1394 $0.0838 $0.0075

$36,790 * $38,693 * $33,694 *

245,413

$0.0627

$15,387

300,904 211,839 645,109

$0.0177 $0.0504 $0.1350

$5,326 * $10,677 * $87,090 *

3,612,698

$0.0200

$72,254

Thursday, 20 December 2001

Page 44


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

RESPIRATORY SYSTEM AND ALLERGIES

Loratidine Oral liq 1 mg per ml Pheniramine Maleate Tab long acting 75 mg Promethazine Hydrochloride Inj 25 mg per ml, 1 ml Inj 25 mg per ml, 2 ml Oral liq 5 mg per 5 ml Tab 10 mg Tab 25 mg Trimeprazine Tartrate Oral liq 30 mg per 5 ml 2,290,502 $0.0400 $91,620

54,029

$0.0712

$3,847 *

21,963 166 6,113,420 659,434 612,440

$1.2680 $1.5500 $0.0353 $0.0474 $0.0948

$27,849 * $257 $215,804 * $31,257 * $58,059 *

Currently available on PSO Currently available on PSO

492,513

$0.0279

$13,741 *

Beta-adrenoceptor agoinists - long acting tablets High dose

Salbutamol Tab long-acting 8 mg 684,200 $0.2732 $186,933

Low dose

Salbutamol Tab long-acting 4 mg 343,793 $0.1996 $68,636

Beta-adrenoceptor agoinists - oral liquids Beta-adrenoceptor agoinists - oral liquids

Salbutamol Oral liq 2 mg per 5 ml 4,761,420 $0.0244 $116,179

Cough preparations Cough preparations

Pholcodine Linctus BP Linctus strong BP 22,790,935 17,897,159 $0.0055 $0.0065 $125,350 * $116,332 *

Inhaled anticholinergic agents - metered dose inhalers High dose

Ipratropium Bromide Aerosol inhaler, 40 mcg per dose 13,957,800 $0.0748 $1,043,346

Low dose

Ipratropium Bromide Aerosol inhaler, 20 mcg per dose 6,447,800 $0.0675 $435,227

Inhaled beta-adrenoceptor agonist and anticholinergic agents - mdi Inhaled beta-adrenoceptor agonist and anticholinergic agents - mdi

Salbutamol with Ipratropium Bromide Aerosol inhaler, 100 mcg with ipratropium bromide 20 mcg per dose 42,272,200 $0.0610 $2,576,491

Thursday, 20 December 2001

Page 45


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

RESPIRATORY SYSTEM AND ALLERGIES Inhaled corticosteroids - breath activated devices Extremely high dose

Fluticasone Powder for inhalation, 500 ug per dose, 4 doses per disk 81,891 $1.9280 $157,886 *

High dose

Beclomethasone Dipropionate Aerosol inhaler, 250 mcg per dose, breath activated Powder for inhalation, 200 mcg per dose, 8 doses per disk Fluticasone Powder for inhalation, 100 mcg per dose, breath activated Powder for inhalation, 100 ug per dose, 4 doses per disk 2,747,600 314,266 $0.1407 $0.9000 $386,450 $282,839

2,007,240 55,043

$0.1125 $0.4500

$225,815 * $24,769 *

Low dose

Beclomethasone Dipropionate Aerosol inhaler, 100 mcg per dose, breath activated 4,380,600 $0.0650 $284,739

Medium dose

Beclomethasone Dipropionate Powder for inhalation, 100 mcg per dose, 8 doses per disk Fluticasone Powder for inhalation, 50 mcg per dose, breath activated 69,121 $0.5200 $35,943

652,260

$0.0650

$42,397 *

Very high dose

Beclomethasone Dipropionate Powder for inhalation, 400 mcg per dose, 8 doses per disk Fluticasone Powder for inhalation, 250 mcg per dose, breath activated Powder for inhalation, 250 ug per dose, 4 doses per disk 177,188 $1.5420 $273,224

3,049,500 104,980

$0.2410 $0.9640

$734,930 * $101,201 *

Inhaled corticosteroids - metered dose inhalers High dose

Fluticasone Powder for inhalation, 50 ug per dose, 4 doses per disk 18,740 $0.2600 $4,872 *

Low dose

Fluticasone Aerosol inhaler, 25 ug per dose 2,469,960 $0.0723 $178,455 CFC free inhalers preferable

Medium dose

Fluticasone Aerosol inhaler, 50 ug per dose 2,557,800 $0.0800 $204,624 CFC free inhalers preferable

Thursday, 20 December 2001

Page 46


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

RESPIRATORY SYSTEM AND ALLERGIES Inhaled corticosteroids - metered dose inhalers with spacers High dose

Beclomethasone Dipropionate Aerosol inhaler with spacer, 250 mcg per dose 67,000 $0.2267 $15,186

Medium dose

Beclomethasone Dipropionate Aerosol inhaler with spacer, 100 mcg per dose 32,800 $0.1250 $4,100

Nasal preparations Allergy prophylactics

Ipratropium Bromide Aqueous nasal spray, 0.03% Sodium Cromoglycate Nasal spray, 4% 506,340 $0.8547 $432,752

186,406

$0.7309

$136,246 *

Respiratory devices Respiratory devices

Peak Flow Meters Peak flow meters-low range 19,053 $18.2000 $346,765 Currently available on WSO

Sodium cromoglycate Sodium cromoglycate

Sodium Cromoglycate Aerosol inhaler, 5 mg per doseAerosol inhaler, 5 mg per dose CFC-free Nebuliser soln, 10 mg per ml, 2 ml Powder for inhalation, 20 mg per dose 1,794,352 14,307 178,008 $0.2071 $0.5100 $0.3262 $371,686 $7,297 $58,066

SENSORY ORGANS Ear Preparations Ear Preparations

Betamethasone Sodium Phosphate Ear/Eye drops 0.1% 71,100 $0.9000 $63,990 #

Betamethasone Sodium Phosphate with Neomycin Ear/Eye drops 0.1% with neomycin 35,755 sulphate 0.5%

$0.9000

$32,180

#

Eye Preparations Anti-Infective Preparations

Chloramphenicol Eye drops 0.5% Eye oint 1% Ciprofloxacin Eye Drops 0.3% Dibromopropamidine Isethionate Eye oint 0.15% 919,360 216,284 $0.1100 $0.4625 $101,130 $100,031

6,130

$2.4860

$15,239

#

1,805

$0.5940

$1,072 *

Thursday, 20 December 2001

Page 47


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

SENSORY ORGANS

Framycetin Sulphate Ear/Eye drops 0.5% Ear/Eye oint 0.5% Fusidic Acid Eye drops 1% Propamidine Isethionate Eye drops 0.1 % Sulphacetamide Sodium Eye drops 10% Tobramycin Eye drops 0.3% Eye oint 0.3% 98,184 40,550 $0.5163 $0.7300 $50,687 * $29,602 *

256,025

$0.9000

$230,423 *

1,730

$0.2970

$514 *

50,610

$0.2753

$13,935

13,570 3,167

$2.2960 $2.9857

$31,157 $9,456

# #

Corticosteroids and Other Anti-Inflammatory Preparations

Dexamethasone Eye drops 0.1 % Eye oint 0.1% Dexamethasone with Framycetin and Gramicidin Ear/Eye drops 500 mcg with framycetin sulphate 5 mg and gramicidin 50 mcg per ml Ear/Eye oint 0.5 mg with framycetin sulphate 5 mg and gramicidin 50 mcg per g Fluorometholone Eye drops 0.1% Levocabastine Eye drops 0.5 mg per ml Lodoxamide trometamol Eye drops 0.5 mg per ml Prednisolone Acetate Eye drops 0.12% Eye drops 1% 25,890 6,028 $0.9000 $1.6743 $23,301 * $10,093 # #

805,672

$0.5625

$453,191 *

#

41,255

$0.9000

$37,130 *

#

44,010

$0.9000

$39,609

#

90,464

$2.1775

$196,985 *

97,130

$0.8710

$84,600 *

22,190 82,180

$0.9000 $0.9000

$19,971 * $73,962 *

# #

Prednisolone Acetate with Phenylephrine and Sulphacetamide Eye drops 0.2% with sulphacetamide 34,125 $1.7200 sodium 10% and phenylephrine hydrochloride 0.12% Sodium Cromoglycate Eye drops 2% 406,810 $0.8710

$58,695 *

#

$354,332

Glaucoma Preparations

Acetazolamide Sodium inj 500 mg Tab 250 mg Carbachol Eye drops 1.5% Eye drops 3% Dipivefrin Hydrochloride Eye drops 0.1% 90 338,043 $13.9500 $0.0875 $1,256 ^

$29,579 * ^

5,910 12,855

$0.4547 $0.4660

$2,687 * $5,990 *

# #

59,720

$0.5900

$35,235

#

Thursday, 20 December 2001

Page 48


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

SENSORY ORGANS

Pilocarpine Eye drops 0.5% Eye drops 1% Eye drops 2% Eye drops 3% Eye drops 4% Eye drops 6% 12,285 63,240 155,070 6,030 102,345 17,835 $0.1780 $0.1907 $0.2440 $0.3093 $0.3573 $0.5093 $2,187 $12,060 $37,837 $1,865 $36,568 $9,083

Mydriatics and Cycloplegics

Atropine Sulphate Eye drops 0.5% Eye drops 1% Cyclopentolate Hydrochloride Eye drops 1% Homatropine Hydrobromide Eye drops 2% 4,020 58,695 $0.2680 $0.2680 $1,077 $15,730

35,445

$0.5840

$20,700

3,900

$0.4787

$1,867 *

Other Eye Preparations

Naphazoline Hydrochloride Eye drops 0.1% Paraffin Liquid with Soft White Paraffin Eye oint with soft white paraffin Paraffin Liquid with Wool Fat Liquid Eye oint 3% with wool fat liq 3% Phenylephrine Hydrochloride Eye drops 0.12% Phenylephrine Hydrochloride with Zinc Sulphate Eye drops 0.12% with zinc sulphate 0.25% 149,490 $0.2800 $41,857 *

79,606

$1.0371

$82,563

6,928

$1.0371

$7,185

40,140

$0.2167

$8,698

14,820

$0.3007

$4,456

Preparations for Tear Deficiency

Hypromellose Eye drops 0.3% Polyvinyl Alcohol Eye drops 1.4% Eye drops 3% Tyloxapol Eye drops 0.25% 636,645 $0.1907 $121,408

295,545 57,465

$0.2413 $0.2587

$71,325 $14,864

7,335

$0.5753

$4,220

SYSTEMIC HORMONE PREPARATIONS EXCLUDING CONTRACEPTIVE HORMONES Anabolic Agents Anabolic Agents

Nandrolone Decanoate Inj 50 mg per ml, 1 ml 1,067 $21.1500 $22,567 #

Thursday, 20 December 2001

Page 49


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

SYSTEMIC HORMONE PREPARATIONS EXCLUDING CONTRACEPTIVE HORMONES Calcium Homeostasis Calcium Homeostasis

Calcitonin Inj 100 iu per ml, 1 ml Pamidronate Disodium Inj 30 mg 10 ml 362 $20.0000 $7,240 #

4,496 $102.3800

$460,300

#

Corticosteroids - Injectibles Corticosteroids - Injectibles

Dexamethasone Sodium Phosphate Inj 4 mg per ml, 2 ml 13,343 $6.5200 $86,996 ^ Currently available on PSO or BSO.

Corticosteroids and Related Agents for Systemic Use Corticosteroids and Related Agents for Systemic Use

Betamethasone Sodium Phosphate Tab 500 mcg 682,962 $0.1186 $80,999 Currently available on PSO.

Betamethasone Sodium Phosphate with Betamethasone Acetate Inj 3.9 mg with betamethasone acetate 3 978 $3.8400 mg per ml, 1ml Dexamethasone Oral liq 1mg per ml Tab 1 mg Tab 4 mg Dexamethasone Sodium Phosphate Inj 4 mg per ml, 1 ml Fludrocortisone Acetate Tab 100 mcg Hydrocortisone Tab 20 mg Tab 5 mg Methylprednisolone Tab 100 mg Tab 4 mg Methylprednisolone Sodium Succinate Inj 40 mg per ml, 1 ml Prednisolone Sodium Phosphate Oral liq 5 mg per ml Prednisone Tab 1 mg Tab 10 mg Tab 2.5 mg Tab 20 mg Tab 5 mg 3,525 235,213 318,950 $1.4000 $0.1608 $0.6189

$3,756 *

$4,935 $37,822 $197,398

# Currently available on PSO. Currently available on PSO.

9,190

$4.5200

$41,539

^

Currently available on PSO or BSO.

613,305

$0.0762

$46,734

^ √ √

108,241 1,516,334

$0.1643 $0.0883

$17,784 $133,892

^ ^

9,599 47,425

$8.3335 $0.4855

$79,993 $23,025

# #

1,139

$6.0800

$6,925

^

1,061,700

$0.3317

$352,130

#

Currently available on PSO.

6,257,797 40,502 1,273,292 2,276,553 7,515,399

$0.0206 $0.0790 $0.0231 $0.0730 $0.0244

$128,911 $3,200 $29,413 $166,188 $183,376

^ ^ ^ ^ ^ Currently available on PSO

Thursday, 20 December 2001

Page 50


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

SYSTEMIC HORMONE PREPARATIONS EXCLUDING CONTRACEPTIVE HORMONES

Tetracosactrin Inj 1mg per ml, 1ml Inj 250 mcg 652 304 $22.4000 $14.7650 $14,605 $4,489 ^

Hormone Replacement Therapy - Systemic Oestrogens

Oestradiol Tab 1 mg Tab 2 mg TDDS 100 mcg per day TDDS 25 mcg per day TDDS 3.9 mg (releases 50 mcg of oestradiol per day) TDDS 50 mcg per day TDDS 7.8 mg (releases 100 mcg of oestradiol per day) Oestradiol valerate Tab 1 mg Tab 2 mg Oestrogens Conjugated, equine tab 1.25 mg Conjugated, equine tab 300 mcg Conjugated, equine tab 625 mcg 649,460 1,685,572 30,344 96,962 196,447 154,801 58,277 $0.1471 $0.2500 $0.8813 $0.3763 $1.0300 $0.5150 $1.7625 $95,563 * $421,393 $26,741 * $36,482 * $202,340 * $79,723 * $102,713 * # # # #

487,465 469,960

$0.1471 $0.2500

$71,727 $117,490

1,404,582 3,270,374 5,825,598

$0.2518 $0.1075 $0.1471

$353,653 $351,565 $857,190

Progestogen and Oestrogen combined preparations

Oestradiol with levonorgestrel Tab 2 mg with 75 mcg levonorgestrel tab 12 and 2 mg oestradiol tab 16 Oestradiol with norethisterone Tab 1 mg with 0.5 mg norethisterone acetate Tab 2 mg with 1 mg norethisterone acetate Tab 2 mg with 1 mg norethisterone acetate 10, and 2 mg oestradiol tab 12 and 1 mg oestradiol tab 6 TDDS 50 mcg 10, and 1 mg norethisterone tab 12 Oestrogens with medroxyprogesterone Tab 625 mcg conjugated equine 14 and 5 mg medroxyprogesterone acetate tab 14 Tab 625 mcg conjugated equine 28 and 10 mg medroxyprogesterone acetate tab 14 Tab 625 mcg conjugated equine 28 and 5 mg medroxyprogesterone acetate tab 28 Tab 625 mcg conjugated equine and 2.5 mg medroxyprogesterone acetate tab 28 Tab 625 mcg conjugated equine and 5 mg medroxyprogesterone acetate tab 28 266,512 $0.2500 $66,628

1,313,648 3,169,908 1,473,304

$0.2500 $0.2500 $0.2500

$328,412 $792,477 $368,326

3,768

$7.0000

$26,376

#

354,228 869,092

$0.2500 $0.1667

$88,557 $144,878

4,523,222 687,568 1,364,496

$0.1250 $0.2500 $0.2500

$565,403 $171,892 $341,124

Thursday, 20 December 2001

Page 51


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

SYSTEMIC HORMONE PREPARATIONS EXCLUDING CONTRACEPTIVE HORMONES

Oestrogens with norgestrel Tab 1.25 mg conjugated equine 28 and 150 mcg norgestrel tab 12 Tab 625 mcg conjugated equine 28 and 150 mcg norgestrel tab 12 368,040 1,375,680 $0.1750 $0.1750 $64,407 $240,744

Other Endocrine Agents Other Endocrine Agents

Clomiphene Citrate Tab 50 mg Danazol Cap 100 mg Cap 200 mg Gestrinone Cap 2.5 mg Metyrapone Cap 250 mg 63,628 $0.5980 $38,050 #

27,582 103,893

$0.7037 $1.1617

$19,409 $120,689

# #

15,527

$12.7338

$197,717

#

9,021

$3.6180

$32,638

#

Other oestrogen preparations Other Oestrogen Preparations

Ethinyloestradiol Tab 10 mcg Oestradiol Implant 100 mg Implant 50 mg Oestriol Tab 2 mg 728,206 $0.1652 $120,300

514 694

$48.8500 $22.5000

$25,109 $15,615

425,956

$0.2333

$99,390

Other progestogen preparations Other Progestogen Preparations

Dydrogesterone Tab 10 mg Medroxyprogesterone Acetate Tab 100 mg Tab 200 mg Tab 400 mg Tab 500 mg Norethisterone Tab 5 mg Progesterone Inj 25 mg per ml, 1 ml Inj 50 mg per ml, 2 ml 42,758 $0.5500 $23,517 *

86,200 365 4 4,067

$1.3033 $2.6018 $3.0093 $3.7800

$112,344 $950 $12 $15,373

# # # #

1,339,638

$0.2750

$368,400

Currently available on PSO

452 888

$2.3290 $3.5970

$1,053 $3,194 *

Sex Hormones Non Contraceptive Androgen Agonists and Antagonists

Testosterone Cypionate Inj long-acting 100 mg per ml, 10 ml 380 $57.3900 $21,808 * #

Thursday, 20 December 2001

Page 52


SCHEDULE TWO: PRODUCTS TO BE TENDERED

Chemical Name

Formulation Name

Unit volume

Unit Market size at subsidy current subsidy

Comments / Product specific conditions

SYSTEMIC HORMONE PREPARATIONS EXCLUDING CONTRACEPTIVE HORMONES

Testosterone Enanthate Inj long-acting 250 mg - prefilled syringe Testosterone Undecanoate Cap 40 mg 2,726 $20.0000 $54,520 #

636,394

$1.0118

$643,924

#

Thyroid and Antithyroid Agents Thyroid and Antithyroid Agents

Carbimazole Tab 5 mg Liothyronine Tab 20 mcg Thyroxine Tab 100 mcg Tab 50 mcg 1,304,768 $0.0313 $40,839 ^ √ √ √

133,135

$0.3077

$40,966

6,845,264 16,633,730

$0.0380 $0.0340

$260,120 $565,547

^ ^

Trophic Hormones GnRH Analogues

Buserelin Acetate Inj 1 mg per ml, 5.5 ml Goserelin Acetate Inj 10.8 mg Inj 3.6 mg Leuprorelin Inj 11.25 mg Inj 3.75 mg Nafarelin Acetate Nasal soln 2 mg per ml 13 $97.5000 $1,268 * #

2,047 $739.6000 1,301 $277.0000

$1,513,961 $360,377

# #

1,714 $739.6000 1,117 $277.0000

$1,267,674 $309,409

# #

2,270

$27.7000

$62,879

#

VARIOUS Agents Used in the Treatment of Poisonings Agents Used in the Treatment of Poisonings

Charcoal Oral liq 50 g per 300 ml Tab 300 mg 180,600 55,285 $0.0667 $0.0713 $12,040 $3,942 Currently available on PSO.

Thursday, 20 December 2001

Page 53


Schedule 3: Tender Process 1.

1.1

General

Sole Supply Period

Tender Bids are to be submitted on the basis that if your Tender Bid is accepted, you will have Sole Supply Status for the particular Tender Item for the Sole Supply Period.

1.2

Transition Periods

(a) There will be three Transition Periods during which the successful tenderer’s brand of the Tender Item is to be available for supply and subsidised, but may not be the sole subsidised brand of that Tender Item. The First and Second Transition Periods are intended to allow for an orderly transition to the arrangements that will apply during the Sole Supply Period. PHARMAC may, in its sole discretion, determine a different commencement date for the First and Second Transition Periods, including where it considers that a different commencement date is necessary to ensure appropriate stock management or appropriate supply of the Tender Item. The Third Transition Period is intended to allow for an orderly transition to any new arrangements following the end of the Sole Supply Period.

(b)

(c)

1.3

Contract

If PHARMAC accepts your Tender Bid, then a contract on the terms and conditions set out in: (a) your Tender Bid (incorporating any variations as a result of negotiations or discussions under clause 1.4 of this Schedule); and Schedule Five; and if PHARMAC accepts a Foreign Exchange Bid from you, Schedule Six,

(b) (c)

will be deemed to have been entered into between you and PHARMAC for Sole Supply Status for the relevant Tender Item and, where applicable, its listing on the Pharmaceutical Schedule.

1.4

PHARMAC may initiate limited negotiations

(a) Notwithstanding clause 2.5 of this Schedule, PHARMAC may, in its sole discretion, initiate negotiations or discussions with you in relation to your Tender Bid about: (i) (ii) (iii) any of the terms and conditions to apply if your Tender Bid is accepted; the proposed packaging or pack size of the Tender Item; your ability to ensure continued availability of the Tender Item throughout the Sole Supply Period;

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(iv)

the price of the Tender Item, but only where PHARMAC determines, in its sole discretion, that an increased price for the Tender Item may be necessary for practicality of supply of the Tender Item (for example, because of particular packaging requirements); or any other matter that PHARMAC considers necessary or appropriate.

(v) (b)

If PHARMAC initiates negotiations or discussions with you under paragraph (a), and as a result there is a change to any of the terms and conditions relating to the supply of a Tender Item, PHARMAC is not obliged to inform the other tenderers of that change, nor give those tenderers an opportunity to amend their bid for that Tender Item. The initiation and pursuit of any negotiations or discussions under this clause shall not constitute a counter-offer and your original Tender Bid will remain open for acceptance in accordance with clause 4.2(b) of this Schedule in the absence of agreement or any variation to that Tender Bid.

(c)

1.5

Supply to DHBs

(a) Tenders are to be submitted on the basis that if your Tender Bid is accepted, you will, if so requested by PHARMAC, or by a DHB and PHARMAC, supply the Tender Item to DHB hospitals as soon as practicable after such a request, and in any case no later than three months after that request (unless any existing arrangements between suppliers and DHBs regarding that Tender Item preclude supply within that period): (i) (ii) at a price that is equal to (or subject to your agreement, less than) the Price; at PHARMAC’s (or at a DHB’s and PHARMAC’s option), either: (A) (B) on the terms set out in Schedule Five, as applicable; on the standard terms of supply for pharmaceuticals between you and the relevant DHB, as applicable; and/or such other terms to be agreed between the parties;

(C) (iii) (iv)

in such quantities as required by the relevant DHB hospital; and for such period as PHARMAC, or a DHB and PHARMAC, requires, which period will not extend beyond the End Date. For the avoidance of doubt, nothing in this clause prevents PHARMAC from implementing any arrangements (including a tender) in relation to the supply of the Tender Item to DHBs.

(b)

This clause confers a benefit on (and is enforceable by) each DHB in accordance with the Contracts (Privity) Act 1982.

1.6

Termination and amendment of Invitation

PHARMAC may: (a) (b) amend this Invitation at any time up to five business days before the Deadline; and/or terminate this Invitation at any time before the acceptance of any Tender Bid by giving five business days written notice.

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2.

2.1

Information about submitting a Tender Bid

Choice of forms and strengths

Where a Tender Item includes different forms and strengths of a Chemical Entity or entities, your Tender Bid may, but does not need to, include all of the forms and strengths of the Chemical Entity or entities contained in that Tender Item.

2.2

Consents not yet held

You may submit a Tender Bid for a Tender Item where your brand of the Tender Item is yet to obtain all necessary Consents. In those circumstances, you may be required to demonstrate your ability to obtain those consents within a time frame acceptable to PHARMAC. For example, you may be required to demonstrate that you have the dossier for that brand of the Tender Item ready to submit within one month of such a request being made.

2.3

Individual Tender Bids

You may submit more than one bid for a Tender Item (for example, you may submit separate bids for different pack sizes of a Tender Item) provided that each bid is submitted on a separate Tender Submission Form.

2.4

Aggregated Tender Bids

(a) You may in addition to, or instead of, submitting a separate Tender Bid for each Tender Item, submit an Aggregated Tender Bid, provided that each brand contained in an Aggregated Tender Bid is only a form and strength of the same Chemical Entity. Where a Tender Item includes different forms and strengths of a Chemical Entity or different entities and you bid for the whole Tender Item, that is not an Aggregated Tender. You must clearly indicate on your Tender Submission Form if your Tender Bid is an Aggregated Tender Bid.

(b)

(c)

2.5

No conditions

You cannot make a conditional Tender Bid nor qualify a Tender Bid in any way.

2.6

Separate offers

PHARMAC will treat each Tender Bid as a separate offer.

3.

What to include in your Offer Letter and Tender Submission Form

Compulsory use of Offer Letter and Tender Submission Form

(a) You must submit your Tender Bid by completing and signing the Offer Letter and completing a separate Tender Submission Form for each Tender Item for which you wish to submit a bid.

56

3.1

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(b)

An electronic version of these forms is available on disc from PHARMAC or on PHARMAC’s website at <www.pharmac.govt.nz>.

3.2

Information that must be supplied about you

In the Offer Letter, you must supply the following information about you: (a) (b) (c) (d) (e) your company structure; your management and technical skills; your financial resources; your (or your supplier’s) existing supply commitments; and your (or your supplier’s) previous supply performance.

3.3

Information that must be supplied about the Tender Item

In your Tender Submission Form, you must supply the following information about the Tender Item: (a) (b) the form, strength, brand name, pack size and type of packaging; the price (in New Zealand dollars, ex-manufacturer (exclusive of GST)) at which you will supply the Tender Item to wholesalers and other distributors during the Sole Supply Period; whether it has all necessary Consents; whether it has IMM status, and if so, to which brand and presentation; the approximate lead times for supply (on the basis of the Unit Volume figures specified in Schedule Two); the name and location of: (i) the manufacturer(s) of the finished product (and name and location of the packaging site, if different); and the manufacturer(s) of the active ingredients; and alternative manufacturers of the finished product and active ingredients (if any); and

(c) (d) (e)

(f)

(ii) (iii)

(g)

your proposed distribution and supply arrangements for the Tender Item.

3.4

Foreign Exchange Bid

(a) In addition to specifying prices in New Zealand dollars, Tender Bids may also specify prices in a Permitted Currency. If PHARMAC accepts your Tender Bid, PHARMAC will, in its sole discretion, decide whether to accept the Foreign Exchange Bid or whether to accept the price for the Tender Item submitted in New Zealand dollars.

57

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(b)

If you submit a Foreign Exchange Bid, you must supply the following additional information: (i) (ii) the price in the Permitted Currency; and your Risk Sharing Percentage.

3.5

PHARMAC may request further information

(a) PHARMAC may request such further information as it considers necessary from or about you for the purposes of clarifying or evaluating your Tender Bid, including (but not limited to): (i) (ii) information about your credit status; information on the price of a Tender Item, but only where PHARMAC requires clarification to confirm the exact price being offered, or where PHARMAC initiates negotiations with you under clause 1.4 of this Schedule; where a Tender Item is a controlled drug, information about the form in which the Tender Item will be supplied, in which case you must supply that information within 10 business days of PHARMAC requesting the information; and a sample pack or container of the Tender Item (and if you intend supplying it in a different form from that sample pack or container, information about the form in which it will be supplied), in which case you must supply that sample pack or container or information within 10 business days of PHARMAC requesting it.

(iii)

(iv)

(b)

If PHARMAC requests further information from or about you it is not obliged to request the same or any other information from or about any other party.

4.

4.1

How to submit a Tender Bid

Submission of Tender Bids

As this tender is a closed tender, no Tender Bids will be opened until after the Deadline. Therefore, it is important that all Tender Bids must: (a) be contained in a sealed envelope marked “TENDER FOR THE SUPPLY OF CERTAIN PHARMACEUTICALS - COMMERCIAL IN CONFIDENCE”, and, if you wish to be notified of the receipt of the Tender Bid immediately, marked “FOR IMMEDIATE NOTIFICATION OF RECEIPT”; and be delivered in the specially marked envelope either in person, by courier or by post (and not by facsimile or email) to: The Chief Executive c/- Legal Counsel Pharmaceutical Management Agency Level 1, Old Bank Chamber 98 Customhouse Quay PO Box 10-254 WELLINGTON

(b)

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4.2

Key dates

Your Tender Bid must: (a) (b) be received by PHARMAC no later than the Deadline; and be irrevocable and remain open for acceptance by PHARMAC until, as applicable: (i) (ii) (iii) 2 August 2002; the date specified for a Tender Item in Schedule Two (if any); or if PHARMAC so requests at any time, such later date as you agree in writing.

5.

5.1

Evaluation

Process of evaluation

The Evaluation Committee, taking such regulatory, legal, medical and other advice as it considers appropriate, will evaluate all conforming Tender Bids that have been checked for conformity under clause 6.1(a) of this Schedule, and any non-conforming Tender Bids that are admitted for consideration under clause 6.1(b) of Schedule Three.

5.2

Matters for evaluation

The matters to be taken into account by the Evaluation Committee, the weight to be attached to them, and the basis on which it will evaluate Tender Bids, are all to be determined by the Evaluation Committee in its sole discretion. The matters taken into account by the Evaluation Committee will, however, include: (a) your ability to ensure continued availability of the Tender Item throughout the Sole Supply Period and each of the Transition Periods, taking into account each of the following separate points: (i) (ii) (iii) (iv) (v) your financial resources; your management and technical skills; your, or your supplier’s, existing supply commitments; your, or your supplier’s, previous supply performance; and your proposed supply and distribution arrangements for the Tender Item (including lead times for supply);

(b) (c)

the pack size of the Tender Item and the type of packaging; the price of the Tender Item (including the price in a Permitted Currency if a Foreign Exchange Bid is submitted); the amount and timing of savings accruing to the Funder or PHARMAC during the Second Transition Period and the Sole Supply Period;

59

(d)

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(e)

either: (i) evidence that you have obtained, and still have, market approval for your brand of the Tender Item, and all necessary Consents; or evidence that will enable the Evaluation Committee to form a view on the likelihood and timing of your brand of the Tender Item gaining all necessary Consents;

(ii)

(f)

whether your brand of the Tender Item has IMM status, or is likely to gain IMM status; and the name and location of the manufacturer of the finished and active ingredients of the Tender Item.

(g)

6.

6.1

Conformity

Conformity

(a) PHARMAC may, in its sole discretion, check your Tender Bid for conformity with this Invitation. If PHARMAC does elect to check your Tender Bid, it is not obliged to check all or any other Tender Bids for conformity. A Tender Bid will conform if it: (i) (ii) (iii) (iv) is received by the Deadline; is submitted on the Tender Submission Form and attached to the Offer Letter; has no conditions or qualifications attached; includes all information required under clause 3.2, 3.3, and if applicable clause 3.4, of this Schedule; and otherwise complies, both as to form and substance, with the requirements of this Invitation.

(v)

(b)

PHARMAC may, in its sole discretion: (i) (ii) exclude any non-conforming Tender Bid from consideration; or consider, and accept, any non-conforming Tender Bid.

7.

7.1

Decision

Decision on acceptance of Tender Bid

(a) The Evaluation Committee will make a recommendation as to which Tender Bid should be accepted to PHARMAC’s board of directors (or chief executive acting under delegated authority pursuant to section 61 of the New Zealand Health and Disability Act 2000, where applicable). PHARMAC’s board of directors (or chief executive, where applicable) will then have the sole discretion to decide whether or not to accept a Tender Bid for any Tender Item.

60

(b)

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(c)

PHARMAC’s board of directors (or chief executive, where applicable): (i) will use the decision criteria in PHARMAC’s then current OPPs, as applicable, in deciding whether or not to accept a Tender Bid for any Tender Item; and is not obliged to act in accordance with any recommendation of the Evaluation Committee.

(ii)

7.2

Notification of acceptance

(a) Once PHARMAC’s board of directors (or chief executive, where applicable) has decided under clause 7.1 above which Tender Bid (if any) to accept for a Tender Item, PHARMAC will, within a reasonable period of time, notify the successful tenderer in writing that it has been successful and in addition: (i) subject to paragraph (b) below, if the successful Tender Bid is unconditionally accepted, PHARMAC will, within a reasonable period of time, notify each unsuccessful tenderer in writing of the identity of the successful tenderer; or subject to paragraph (b) below, if the successful Tender Bid is conditionally accepted, PHARMAC will, within a reasonable period of time of that tender becoming unconditionally accepted, notify each unsuccessful tenderer in writing of the identity of the successful tenderer.

(ii)

(b)

If for any reason you do not receive written notification from PHARMAC in accordance with paragraph (a) above, you will be deemed to have received the required notification on the date that each Tender Item you bid for is notified in the Pharmaceutical Schedule.

7.3

PHARMAC’s rights reserved

(a) PHARMAC reserves the right to accept or reject any Tender Bid, and is not obliged to give reasons for its decision. While it is PHARMAC’s current intention to enter into an agreement for the sole subsidised supply of each Tender Item, PHARMAC will not in any circumstances be bound to accept any or all Tender Bids and, in particular, PHARMAC will not be bound to accept the lowest or any other Tender Bid for a Tender Item. Acceptance only occurs if, and when, PHARMAC’s board of directors (or chief executive, where applicable) resolves to accept a Tender Bid and this acceptance is notified to the successful tenderer. PHARMAC may take any action, or do anything, that is incidental to the process described in this Invitation, except to the extent that such action is explicitly excluded in this Invitation.

(b)

(c)

(d)

7.4

Conditional acceptance

(a) Where the successful tenderer’s brand of a Tender Item is yet to receive all necessary Consents: (i) the contract referred to in clause 1.3 of Schedule Three will be conditional upon such Consents being received within a time period specified by PHARMAC; and

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(ii)

PHARMAC may terminate the contract if such Consents have not been obtained, or in PHARMAC’s view are unlikely to be obtained, within the period specified by PHARMAC.

(b)

Acceptance of a Tender Bid by PHARMAC’s board of directors (or chief executive, where applicable), and the contract referred to in clause 1.3 of Schedule Three, may be conditional upon you satisfying PHARMAC that you will have sufficient stock of the Tender Item available to commence supply as at a date reasonably determined by PHARMAC.

8.

8.1

Additional terms for Back-up Supply Bids

Back-up Supply Bid

Where a Tender Item is indicated in Schedule Two as being an item that may require a contract for Back-up Supply Status, then in addition to, or instead of, submitting a bid for Sole Supply Status for that Tender Item, you may submit a bid for Back-up Supply Status.

8.2

Terms applicable to Back-up Supply Bid

If you submit a bid for Back-up Supply Status for a Tender Item, the terms applicable to (and the process to be followed by PHARMAC for) a bid for Sole Supply Status in this Invitation will apply equally to the Back-up Supply Bid as if the Back-up Supply Bid was a Tender Bid, except as expressly stated in this clause 8.

8.3

Contract

If a Back-up Supply Bid is accepted, a contract on the terms set out in your Back-up Supply Bid and Schedule Seven will be deemed to have been entered into between you and PHARMAC.

8.4

Consents must be held

You must only submit a Back-up Supply Bid where your brand of the Tender Item has all necessary Consents.

8.5

No Aggregated Tender Bid

You must not submit a Back-up Supply Bid that is an Aggregated Tender Bid.

8.6

Compulsory use of Offer Letter and Back-up Supply Submission Form

You must submit your Back-up Supply Bid by completing a separate Back-up Supply Submission Form for each Tender Item for which you wish to submit a bid and attaching that form to the Offer Letter.

8.7

Information that must be supplied about the Tender Item

In addition to the information to be supplied under clause 3.3 of this Schedule, you must supply details of the level of stock (in number of Units) of the Tender Item that you will hold in New Zealand during the Sole Supply Period if your Back-up Supply Bid is accepted. This level must not be less than three months stock of the Pharmaceutical (on the basis of the Unit Volume figures specified in Schedule Two).

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8.8

No Foreign Exchange Bid

You must not submit a Back-up Supply Bid that contains a Foreign Exchange Bid.

8.9

Evaluation

In evaluating your Back-up Supply Bid, the Evaluation Committee will not take into account the amount and timing of savings accruing to the Funder or PHARMAC during the Second Transition Period and the Sole Supply Period.

9.

9.1

Dealing with information

Confidentiality

Subject to clause 9.2 below, all Confidential Information is confidential to us and our employees, legal advisers and other consultants (including PTAC and its sub-committees), the Ministry of Health and the Funder. You acknowledge that it may be necessary or appropriate for PHARMAC to disclose Confidential Information: (a) (b) (c) pursuant to the Official Information Act 1982; or in publicly notifying any acceptance of your Tender Bid; or otherwise pursuant to PHARMAC’s public law or any other legal obligations.

PHARMAC may consult with you before deciding whether to disclose Confidential Information for the purposes described in paragraphs (a) to (c) above, in order to ascertain any objections you may have to the disclosure of any of the Confidential Information. You acknowledge, however, that it is for PHARMAC to decide, in its absolute discretion, whether it is necessary or appropriate to disclose information for any of the above purposes, provided that PHARMAC shall act in good faith in disclosing any Confidential Information. Outside the circumstances described in paragraphs (a) to (c) above, Confidential Information must not be disclosed by either of us (or by our employees, legal advisers and other consultants) unless: (d) the information is publicly available without any cause attributable to the disclosing party; or the other party has been reasonably informed prior to disclosure, and the disclosure is: (i) (ii) (iii) for the purposes of this Agreement; or required by law; or in a form, and of content, agreed to by us.

(e)

For the avoidance of doubt, information released by PHARMAC in accordance with paragraphs (a) to (c) above ceases to be Confidential Information and you agree that PHARMAC may release that information again at any time in future without consulting with you or obtaining your prior agreement.

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9.2

Use of information

Generalised aggregated information regarding your Tender Bid that does not identify you or that can not reasonably be expected to identify you or lead to the connection of you with your Tender Bid is not Confidential Information and PHARMAC may use and publish such information as it sees fit.

10.

10.1

Miscellaneous

Costs

PHARMAC is not liable for any direct or indirect costs incurred, or loss sustained, by you in respect, or arising out, of this tendering process or the obtaining or granting of Sole Supply Status for your supply of the Tender Item including, without limitation, costs of obtaining all necessary Consents for any Tender Item.

10.2

No reliance

Your Tender Bid is submitted in reliance on your own knowledge, skill and independent advice, and not in reliance on any representations made by PHARMAC (including for these purposes the sales and market information (if any) provided in Schedule Two).

10.3

No further liability

PHARMAC’s liability (if any) under, or in relation to, the tendering process is limited to the obligations expressly contained in this Invitation, and no further private law liability exists in relation to the process.

10.4

No lobbying

(a) You are not to initiate any communication with PHARMAC, the Minister of Health (or any Associate Ministers), the Ministry of Health, or a District Health Board or any of their officers or directors, at any time with a view to influencing the outcome of the tendering process. Failure to comply with this clause will entitle PHARMAC, in its sole discretion, to disqualify you from this tendering process.

(b)

10.5

Enquiries

If you have any enquiries about this Invitation you should contact Matthew Perkins or Sarah Schmitt at PHARMAC. Any additional information that PHARMAC gives to you as a result of your enquiry will also be given by PHARMAC to other potential tenderers, if PHARMAC determines that such information is material.

10.6

Jurisdiction and governing law

We each submit to the exclusive jurisdiction of the New Zealand courts and agree that this Invitation is governed by New Zealand law.

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Schedule 4: Offer Letter, Tender Submission Form and Back-up Supply Submission Form 1. Offer Letter

<Insert today’s date> Chief Executive c/- Legal Counsel PHARMAC PO Box 10-254 (or for courier delivery: Level 1, Old Bank Chambers 98 Customhouse Quay) Wellington New Zealand Dear Sir/Madam Tender for the supply of certain pharmaceuticals - commercial in confidence In response to your invitation to tender dated <insert date>, we offer to provide the tender items specified in the attached form(s), in the presentations and strengths set out in the attached form(s), on the terms and conditions contained in the invitation. Set out below (or, where applicable, attached to this offer letter) is further information in support of our tender bid. (a) information about our company structure:

(b)

information about our management and technical skills:

(c)

information about our financial resources:

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(d)

information about our, or our supplier’s, existing supply commitments:

(e)

information about our, or our supplier’s, previous supply performance:

(f)

our contact details (i.e. who communications relating to the attached bid(s) should be made to)

Name Designation Address Phone Facsimile Email address

Signed for and on behalf of <insert name of tenderer> by

___________________________ <Insert name> <Insert designation>

Please find attached <insert number > Tender Submission Forms. Please find attached <insert number > Back Up Supply Submission Forms (where applicable).

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2.

Tender Submission Form

Note: You must submit separate forms for each Tender Item for which you wish to submit a Tender Bid (except in the case of an Aggregated Tender Bid) and attach all forms to the Offer Letter. Tender item Chemical name e.g. paracetamol Strength e.g. 500 mg Unit type (form/presentation) e.g. capsule Product name (brand name) Pack size e.g. 30’s Packaging type e.g. blister

Either

Pricing (if $NZ bid) Pack price in $NZ Or Pricing (if Foreign Exchange Bid) Permitted Currency of Tender Bid Price in Permitted Currency Risk Sharing Percentage (If Aggregated Tender Bid, please repeat the above tables as often as necessary in the same Tender Submission Form and clearly indicate that it is an Aggregated Tender Bid) Product approval status (please complete only one of the following three options) Date of market approval (please attach copy of Medsafe gazette notice) OR Date of submission of dossier (please attach confirmation from Medsafe that dossier has been submitted) OR Expected date of dossier submission to Medsafe Miscellaneous IMM status (if so, interchangeability with which brand and presentation) Approximate lead time for supply (on the basis of the Unit Volume figures specified in Schedule Two) Name and location of manufacture Name and location of manufacturer(s) of finished product Name and location of packaging site (if different from above) Name and location of manufacturer(s) of active ingredients Alternative name and location of finished manufacturer(s) of finished product (if any) Alternative name and location of manufacturer(s) of active ingredients (if any)

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Proposed supply and distribution arrangements for the Tender Item

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3.

Back-up Supply Submission Form

Note: You must submit separate forms for each Tender Item for which you wish to submit a Back-up Supply Bid and attach all forms to the Offer Letter. Tender item Chemical name e.g. paracetamol Strength e.g. 500 mg Unit type (form/presentation) e.g. capsule Product name (brand name) Pack size e.g. 30’s Pack type e.g. blister Pack price in $NZ Stock holding level (number of Units) Product approval status Date of market approval (please attach copy of Medsafe gazette notice) Miscellaneous IMM status (if so, to which brand) Approximate lead time (once notification of an out of stock had occurred) Name and location of manufacture Name and location of manufacturer(s) of finished product Name and location of packaging site (if different from above) Name and location of manufacturer(s) of active ingredients Proposed supply and distribution arrangements for the Tender Item (if required)

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Schedule 5: Contract terms 1.

1.1

General

Operating Policies and Procedures

(a) You acknowledge that: (i) PHARMAC is required to pursue the objectives, carry out the functions, and otherwise comply with the statutory obligations, prescribed for PHARMAC in the New Zealand Public Health and Disability Act 2000; PHARMAC is subject to other statutory and public law obligations, which govern PHARMAC’s decision-making processes; PHARMAC has OPPs, which provide guidance on the way in which PHARMAC carries out its statutory responsibilities in relation to the management of the Pharmaceutical Schedule; PHARMAC’s OPPs may be amended or updated from time to time, following consultation with relevant groups; the actions which PHARMAC may take under its OPPs include (without limitation): (A) (B) listing new pharmaceuticals; changing guidelines or restrictions on the prescribing and dispensing of listed pharmaceuticals; changing the subsidy levels for pharmaceuticals as a result of PHARMAC adopting one of the strategies set out in the OPPs or by any other means; amending the basis on which pharmaceuticals are classified into therapeutic groups and sub-groups; and delisting pharmaceuticals, or delisting all or part of a therapeutic group or sub-group; and

(ii)

(iii)

(iv)

(v)

(C)

(D)

(E)

(vi)

any action taken by PHARMAC pursuant to its OPPs may impact on the listing of each Pharmaceutical.

(b)

PHARMAC agrees not to apply, amend or update its OPPs in order to avoid any of PHARMAC’s obligations under Schedule Five of this Agreement.

1.2

Amendments to Pharmaceutical Schedule

PHARMAC will consult with you before amending the Pharmaceutical Schedule if a proposed amendment would have a material adverse effect on the listing of the Pharmaceutical.

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2.

2.1

Effect of Sole Supply Status

Subsidy arrangements

(a) The Pharmaceutical will be subsidised, and you must supply it, during the First Transition Period: (i) if the Pharmaceutical is already listed, at the price at which it was subsidised at the commencement of the First Transition Period; if the Pharmaceutical is not already listed, but other brands of the Chemical Entity are listed, at the reference price for the therapeutic sub-group of which the Pharmaceutical is a member as at the date of listing; or if no brand of the Chemical Entity is listed, at the Price.

(ii)

(iii) (b)

The subsidy payable for the Pharmaceutical will be changed to the Price on the first day of the Second Transition Period and the subsidy payable for all other brands of that form and strength of the Chemical Entity that are listed will be changed accordingly. All other brands of that form and strength of the Chemical Entity will be delisted on the first day of the Sole Supply Period, with the result that you will have Sole Supply Status for that form and strength of the Chemical Entity during the Sole Supply Period. The Pharmaceutical will continue to be fully subsidised at the Price throughout the Second Transition Period and, subject to PHARMAC’s other rights under this Agreement in relation to the Pharmaceutical, throughout the Sole Supply Period. Subject to PHARMAC’s other rights under this Agreement in relation to the Pharmaceutical, the Pharmaceutical will not be delisted during the Third Transition Period.

(c)

(d)

(e)

2.2

Exclusivity for the Sole Supply Period

(a) Subject to PHARMAC’s other rights under this Agreement in relation to the Pharmaceutical, PHARMAC will not subsidise another supplier’s brand of the Pharmaceutical on the Pharmaceutical Schedule at any time during the Sole Supply Period. This clause does not prohibit PHARMAC from entering into negotiations or arrangements with, or inviting tenders from, other suppliers to be the sole subsidised supplier of any forms and strengths of the Chemical Entity, if such supply commences after the end of the Sole Supply Period. For the avoidance of doubt, PHARMAC may lower the subsidy applicable to a Pharmaceutical during the Third Transition Period as it sees fit, including lowering the subsidy of a Pharmaceutical as a result of the implementation of new tender arrangements.

(b)

(c)

2.3

Withdrawal of Sole Supply Status

(a) PHARMAC may withdraw Sole Supply Status in relation to your supply of the Pharmaceutical (in which case clauses 2.1 and 2.2 of this Schedule will no longer apply), by written notice to you at any time during the Sole Supply Period if:

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(i)

you have failed to notify PHARMAC as required under clause 5.1 of this Schedule; you are unable to supply the Pharmaceutical for a period of 30 days; any Consent for the Pharmaceutical is withdrawn; or clause 4(d)(i) of Schedule Six applies.

(ii) (iii) (iv) (b)

Any withdrawal of Sole Supply Status is without prejudice to PHARMAC’s rights under clauses 5.2 and 5.3 of this Schedule.

2.4

Suspension of Sole Supply Status

(a) If, at any time, you are unable to meet demand for the Pharmaceutical, or you notify PHARMAC under clause 5.1 of this Schedule of a Potential Out-of-Stock Event, PHARMAC may suspend Sole Supply Status in relation to your supply of the Pharmaceutical for the period of such inability. Any suspension of Sole Supply Status is without prejudice to PHARMAC’s rights under clauses 5.2 and 5.3 of this Schedule.

(b)

2.5

Subsidy arrangements after the End Date

(a) PHARMAC may at its sole discretion, with effect from the End Date: (i) require the Pharmaceutical to continue to be the subject of a listing agreement, in which case PHARMAC will give you written notice not less than three months prior to the End Date; or apply any of the strategies under PHARMAC’s then current OPPs to the Pharmaceutical (including delisting the Pharmaceutical after the Third Transition Period).

(ii)

(b)

If the Pharmaceutical is to continue to be the subject of a listing agreement between you and PHARMAC under paragraph (a)(i) above, then: (i) you will cease to have Sole Supply Status for that form and strength of the Chemical Entity; the Pharmaceutical will otherwise remain listed subject to the terms of this Agreement, as applicable; you may increase the price ex-manufacturer (exclusive of GST) at which you supply the Pharmaceutical to wholesalers and other such distributors on giving PHARMAC six months written notice of that price increase. You may provide PHARMAC with this written notice at any time after PHARMAC gives you notice under paragraph (a)(i) above, provided that such price increase does not take effect until the end of the six-month period; if PHARMAC does not increase the subsidy for the Pharmaceutical to the new price notified under paragraph (b)(iii) above, you may withdraw the Pharmaceutical from supply on not less than six months prior written notice;

(ii)

(iii)

(iv)

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(v)

if PHARMAC does increase the subsidy for the Pharmaceutical to the new price notified under paragraph (b)(iii) above, you may withdraw the Pharmaceutical from supply on not less than two years prior written notice (except where the withdrawal is for reasons that PHARMAC considers to be outside of your control, in which case you must first provide to PHARMAC such information as it may require from you in order to satisfy it, in its sole discretion, that you are required to withdraw supply); and if at the time of providing notice under paragraph (b)(iii) above, you advise PHARMAC that you are required to purchase a significant quantity of extra stock of the Pharmaceutical to enable you to continue to supply for the two-year period, and you advise PHARMAC of the total cost of that stock, PHARMAC will either: (A) use reasonable endeavours to enter into an agreement to reimburse you for stock that remains unsold at the end of that two-year period; or release you from your obligations to supply under paragraph (a)(i) above.

(vi)

(B)

3.

3.1

Consents

Warranty and indemnity that Consents are held

You warrant that you have, and will maintain, all necessary Consents. If a Consent is not held by you or is withdrawn or the Pharmaceutical is no longer approved for an indication for which it is subsidised, then: (a) (b) PHARMAC is entitled to terminate this Agreement by 14 days’ written notice to you; and you are to indemnify the Funder for any additional costs incurred by it (or by PHARMAC on its behalf) as a result of that withdrawal. This clause confers a benefit on (and is enforceable by) the Funder in accordance with the Contracts (Privity) Act 1982.

3.2

Changed medicine notification

If the Ministry of Health approves any changed medicine notification for the Pharmaceutical, or for a variant of the Pharmaceutical: (a) (b) you must immediately notify PHARMAC; and PHARMAC may take such action as it considers appropriate in relation to that Pharmaceutical or variant of the Pharmaceutical including (but not limited to): (i) (ii) withdrawing Sole Supply Status for the Pharmaceutical; and delisting the Pharmaceutical.

4.

4.1

Price

Price change

You must change the price at which you supply the Pharmaceutical to the Price on the 12 day of the month immediately preceding the beginning of the Second Transition Period .

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4.2

Supply price

During each of the Second Transition Period, the Sole Supply Period and the Third Transition Period, the price at which the Pharmaceutical is supplied by you must not exceed the Price.

4.3

Warranty that not less than cost price

You warrant that the price at which you are required to supply the Pharmaceutical under this Agreement is greater than the cost price of the Pharmaceutical (including, without limitation, the costs of manufacturing the Pharmaceutical and of supplying it to you for supply in New Zealand).

4.4

No reference pricing during Sole Supply Period

The subsidy payable for the Pharmaceutical will not be reduced as a result of a reduction in the reference price for the therapeutic sub-group of which it is a member during the Sole Supply Period. For the avoidance of doubt, PHARMAC will not be prevented from applying its reference pricing mechanisms to the Pharmaceutical to reduce the subsidy payable for it from the End Date.

5.

5.1

Out-of-stock arrangements

Notification of Potential Out-of-Stock Event and supply of Alternative Pharmaceutical

(a) You must notify PHARMAC in writing as soon as you have reasonable cause to believe that you will be unable to supply the Pharmaceutical and, in any event, you must notify PHARMAC if at any time a Potential Out-of-Stock Event occurs, in which case PHARMAC may suspend Sole Supply Status in relation to your supply of the Pharmaceutical. If a Potential Out-of-Stock Event occurs, then at PHARMAC’s option: (i) PHARMAC may implement an arrangement with another supplier to supply an Alternative Pharmaceutical (including an arrangement for back-up supply); or you must use your best endeavours to procure wholesalers and other such distributors to supply, as soon as practicable, an Alternative Pharmaceutical to pharmacies at the Price, and PHARMAC will subsidise the Alternative Pharmaceutical at the Price.

(b)

(ii)

5.2

General indemnity

You agree to indemnify the Funder if you are unable to meet demand for supply of the Pharmaceutical (other than for reasons that PHARMAC considers to be outside your control) or you withdraw the Pharmaceutical from supply. This indemnity: (a) covers all costs incurred by the Funder (or by PHARMAC on its behalf) as a result of your inability to meet supply demands or the withdrawal of the Pharmaceutical from supply that are additional to any costs specified in clause 5.3; and confers a benefit on (and is enforceable by) the Funder in accordance with the Contracts Privity Act 1982.

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(b)

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5.3

Liquidated damages and specific indemnity

(a) Subject to clause 5.4 below, if you fail to supply the Pharmaceutical (other than for reasons that PHARMAC considers to be outside your control) and: (i) you have not notified PHARMAC under clause 5.1 of this Schedule, then without prejudice to PHARMAC’s rights under clause 5.2: (A) you must pay to PHARMAC liquidated damages for the administrative and/or operational costs incurred by PHARMAC as a result of your failure to supply in the amount of $50,000 per Chemical Entity; and you must indemnify the Funder or PHARMAC for all costs (if any) incurred in securing and subsidising an Alternative Pharmaceutical for the period you are unable to supply the Pharmaceutical, provided that such indemnity will not exceed a dollar amount equal to the Unit Volume multiplied by the Unit Subsidy; and PHARMAC may withdraw Sole Supply Status in relation to your supply of the Pharmaceutical under clause 2.3 of this Schedule; or

(B)

(C)

(ii)

you have notified PHARMAC under clause 5.1 of this Schedule, then without prejudice to PHARMAC’s rights under clause 5.2: (A) you must pay to PHARMAC liquidated damages for the administrative and/or operational costs incurred by PHARMAC as a result of your failure to supply in the amount of $5,000 per Chemical Entity; and you must indemnify the Funder or PHARMAC for all costs (if any) incurred in securing and subsidising an Alternative Pharmaceutical for the period you are unable to supply the Pharmaceutical, provided that such indemnity will not exceed a dollar amount equal to one quarter of the Unit Volume multiplied by the Unit Subsidy; and if you are unable to supply the Pharmaceutical for more than 30 days, PHARMAC may withdraw Sole Supply Status in relation to your supply of the Pharmaceutical under clause 2.3 of this Schedule.

(B)

(C)

(b)

If, having notified PHARMAC under clause 5.1 of this Schedule, you remain able to, and you continue to supply, the Pharmaceutical, or an Alternative Pharmaceutical in accordance with clause 5.1(b)(ii) of this Schedule, you will not be liable for any costs unless PHARMAC, in its sole discretion, has considered it necessary to enter into an arrangement with an alternative supplier under which PHARMAC has agreed to make a payment to that supplier to ensure continuity of supply, in which case you must indemnify the Funder or PHARMAC for that payment. Such indemnity will be limited to an amount of $10,000. You acknowledge and agree that: (i) the amounts of liquidated damages in this clause represent a reasonable estimate of the administrative and operational costs incurred by PHARMAC (including the use of staff and loss of opportunity as a result of use of staff time, and communication costs), the estimate being based on PHARMAC’s previous experience; and

(c)

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(ii)

the amounts referred to as liquidated damages are not intended to include any penalty element nor any amount for costs relating to the securing of an Alternative Pharmaceutical, or the subsidisation of an Alternative Pharmaceutical.

(d)

Where you notify PHARMAC under clause 5.1 above of a Potential Out-of-Stock Event, PHARMAC agrees to recover as liquidated damages under clause 5.3(a)(ii) of this Schedule only the amounts specified in paragraphs (a)(ii) and (b) of this clause, which represent only a portion of PHARMAC’s costs actually incurred. All amounts referred to in this clause are plus GST (if any).

(e)

5.4

Limited liability during the First Transition Period

(a) Notwithstanding any other provision in this Agreement, clauses 5.2 and 5.3 of this Schedule do not apply to the supply of the Pharmaceutical during the First Transition Period. During the First Transition Period, you must use your best endeavours to supply sufficient stock of the Pharmaceutical to meet reasonably foreseeable demand for supply of it in New Zealand.

(b)

6.

6.1

Termination, restrictions and Crown Direction

Termination and restrictions for clinical reasons

PHARMAC reserves the right, but only after consultation with you and a relevant medical adviser (being either the Ministry of Health, PTAC, or a sub-committee of PTAC), to: (a) terminate this Agreement at any time during the Sole Supply Period or the Transition Periods if the medical adviser determines for clinical reasons that it is no longer appropriate to have either: (i) (ii) (b) a sole subsidised supplier of that form and strength of the Chemical Entity; or the Pharmaceutical as the sole subsidised brand; and/or

impose at any time during the Sole Supply Period or the Transition Periods restrictions on the prescribing or dispensing of a Pharmaceutical if those restrictions are necessary for clinical reasons.

6.2

Crown Direction

(b) (c) You acknowledge that PHARMAC must comply with any Crown Direction. PHARMAC may terminate or amend the Agreement, or impose restrictions on the prescribing or dispensing of a Pharmaceutical, at any time during the Sole Supply Period or the Transition Periods, if the termination, amendment or imposition of restrictions is required to give effect to a Crown Direction. In the event that a Crown Direction is issued to PHARMAC that requires an amendment to be made to this Agreement to give effect to that direction:

(d)

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(i)

PHARMAC will give you as much notice as practicable of the Crown Direction and of any amendments to this Agreement that are required to give effect to that direction; the Agreement will be deemed to be amended so as to give effect to the Crown Direction from the date when such direction is due to take effect; and you may terminate this Agreement on not less than six months’ written notice to PHARMAC where the effect of the amendment required under sub-paragraph (ii) above is such that it is no longer viable, financially or otherwise, for you to continue supplying the Pharmaceutical or to perform your obligations under this Agreement.

(ii)

(iii)

7.

Guarantee

(a) PHARMAC may require an entity acceptable to it to provide a guarantee (in a form satisfactory to PHARMAC) of your performance obligations under clauses 5.2 and 5.3 of this Schedule including, without limitation, the payment of any sum payable under the indemnity contained in those clauses for any failure to supply the Pharmaceutical during the Sole Supply Period. The guarantor’s liability under such a guarantee will be limited to a total of $100,000 per Chemical Entity for all claims made by PHARMAC under the guarantee.

(b)

8.

8.1

Miscellaneous

Litigation support

If this Agreement or its terms (including the basis on which the Pharmaceutical is listed): (a) (b) give rise to proceedings being issued against PHARMAC; or result in PHARMAC being made a party to any proceedings issued by a third party,

you will give PHARMAC all assistance it reasonably requires to gather evidence (including expert medical and clinical evidence) for the purpose of those proceedings.

8.2

Dispute resolution

If there is a dispute between us arising out of, or in connection with, this Agreement, neither of us is to commence any proceedings relating to that dispute until the following procedure has been complied with: (a) the party claiming a dispute has arisen must give written notice to the other party specifying the nature of the dispute; we will endeavour, in good faith, to resolve the dispute referred to in the notice by using informal dispute resolution techniques; if we do not agree on a dispute resolution technique within 14 days after the date notice of a dispute was given, the dispute is to be mediated according to the standard mediation agreement of LEADR New Zealand Incorporated (Lawyers Engaged in

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(b)

(c)

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Alternative Dispute Resolution), and the Chair of LEADR (or the Chair’s nominee) will select the mediator and determine the mediator’s remuneration; (d) a party seeking urgent interlocutory relief may, by notice to the other party, elect not to comply with the provisions of this clause, but only to the extent of the relief sought, and only for the period required to dispose of the application for interlocutory relief; and pending resolution of the dispute, this Agreement will remain in full effect without prejudicing our respective rights and remedies.

(e)

8.3

Advertising

You must not procure, or in any way participate or assist in, the publishing of any Advertisement that: (a) (b) is aimed at consumers of pharmaceuticals; and breaches any applicable: (i) statute or regulation, including the Fair Trading Act 1986, Medicines Act 1981 and Medicines Regulations 1984; or industry standard, including the Advertising Standards Authority Codes of Practice and the Researched Medicines Industry Code of Practice.

(ii)

For the purposes of this clause: (c) "Advertisement" means any words, whether written, printed or spoken, any pictorial representation or design, any sounds or visual images, or combination of sounds and visual images, or any other form of communication used or appearing to be used to promote: (i) (ii) (d) the sale of a Pharmaceutical; or the use of a method of treatment involving a Pharmaceutical; and

references to a statute, regulation or industry standard include that statute, regulation or industry standard as amended or replaced from time to time.

8.4

No waiver

A failure or delay by either of us to exercise any right arising under this Agreement is not a waiver of that right, and a waiver of a breach of this Agreement is not a waiver of any other breach.

8.5

Entire agreement

This Agreement and, to the extent applicable, the Invitation: (a) constitute the entire agreement between us regarding the terms on which the Pharmaceutical is listed and subsidised by the Funder; and

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(b)

supersede and extinguish all prior agreements and understandings between us regarding the Pharmaceutical.

8.6

Amendments

Amendments to this Agreement are only effective if in writing and signed by both of us.

8.7

Jurisdiction and governing law

We each submit to the exclusive jurisdiction of the New Zealand courts and agree that this Agreement is governed by New Zealand law.

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Schedule 6: Additional contract terms for foreign exchange bid 1. Introduction

This Schedule sets out terms that will apply to your Tender Bid if you have submitted a Foreign Exchange Bid. The provisions in this Schedule are intended to operate as follows: (a) Your Foreign Exchange Bid will be converted into New Zealand dollars in order to establish an initial or base price. The timing of this conversion is described in clause 2(a) of this Schedule and depends on whether or not your Tender Bid is accepted conditional on market approval. The formula for calculating the base price is set out in clause 2(b) of this Schedule and is based on an average exchange rate over the period shortly before the base price is calculated. The base price will be the initial Price under the Agreement. The Price will be reviewed periodically under the Agreement. The first review of the base price will occur on 30 June 2003. After the review on 30 June 2003, (if applicable), a subsequent review will be held on 30 June 2004. At each review date, an exchange rate average for the preceding period will be determined. The exchange rate average forms part of the formula described in clause 3(a) of this Schedule for calculating a new price. If the calculated new price is between 95% and 105% of the price just preceding the review, there will be no change to the Price. If the calculated new price is below 95% or above 105% of the Price, then you may supply the Pharmaceutical at a reviewed price that must be less than or equal to the price calculated under the formula. PHARMAC will subsidise the pharmaceutical at the level of that reviewed price unless the reviewed price is greater than 120% of the base price. In this case, your Sole Supply Status is no longer guaranteed and PHARMAC may apply any of the strategies under its OPPs, and/or it may choose to subsidise the Pharmaceutical at a level that is no more than 120% of the base price. A reviewed price (if any) will apply until the next review date, at which time the same process will occur to determine another reviewed price (if any), except that the provisions relating to the subsidy cap of 120% will always be based on the base price. There is provision in clause 5 for you and PHARMAC to appoint an independent expert to determine any disputed calculation.

(b)

(c)

(d) (e) (f) (g)

(h)

(i)

(j)

(k)

(l)

(m)

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2.

Establishment of Base Price in New Zealand dollars.

(a) PHARMAC will determine the Base Price in New Zealand dollars as soon as practicable after: (i) in the case of an unconditional acceptance of your Tender Bid, the date which is 15 days prior to the date that PHARMAC’s board of directors (or chief executive, where applicable) determines to accept your Tender Bid; or in the case of acceptance of your Tender Bid being conditional on you obtaining market approval for the Pharmaceutical, the date on which such market approval is notified in the New Zealand Gazette.

(ii)

(b)

The Base Price will be determined according to the following formula: Base Price = Price in Permitted Currency / Base Exchange Rate.

(c)

PHARMAC will notify you of the Base Price as soon as practicable after making the calculation. If there is a dispute between PHARMAC and you over the calculation of the Base Price, then that dispute will be resolved in accordance with clause 5 of this Schedule. Once the Base Price is determined under this clause, it will be the Price under the Agreement until the first Exchange Rate Price Review.

(d)

(e)

3.

Exchange Rate Price Review

(a)

As soon as practicable after the Date of an Exchange Rate Price Review and, in any case, no later than two weeks after that date, you are to: (i) calculate a price for the Pharmaceutical in accordance with the following formula:

Calculated Price = Base Price ×  

(ii)

 Risk Sharing Percentage  Base Exchange Rate  ×  Exchange Rate Average − 1    100   

notify PHARMAC of the price calculated under paragraph (a)(i) above (the Calculated Price) , and provide PHARMAC with a copy of the calculations used to derive the Calculated Price.

(b)

PHARMAC will advise you, as soon as practicable after receiving your notification under paragraph (a)(ii) above, whether it agrees with the Calculated Price. If PHARMAC disputes the Calculated Price, then the price will be determined in accordance with clause 5 below.

4.

Reviewed Price

(a) Subject to paragraph (c) below, you must notify PHARMAC in writing, on the 7 day of the month following agreement on (or determination of) the Calculated Price, of the price ex-manufacturer (exclusive of GST) at which you will supply the Pharmaceutical until the

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next Exchange Rate Price Review, such price being a price that is less than or equal to the Calculated Price (the Reviewed Price). (b) The Reviewed Price will become the new Price under the Agreement from the first day of the month following the date on which you notify PHARMAC of the Reviewed Price. th Therefore, that price must be effective in the market from the 12 day of the month on which you notify PHARMAC of the Reviewed Price. If the Calculated Price is between 95% and 105% of the Base Price (or, if there has been an Exchange Rate Price Review, of the Reviewed Price), then you are to continue to supply the Pharmaceutical at the Base Price, or, if applicable, the Reviewed Price until the next Exchange Rate Price Review, or the end of the Sole Supply Period (whichever is earlier). If the Reviewed Price is greater than 120% of the Base Price, then PHARMAC may: (i) withdraw your Sole Supply Status, in which case PHARMAC may, at its sole discretion, require the Pharmaceutical to remain listed subject to the terms of this Agreement, as applicable, from the date on which Sole Supply Status is withdrawn; and/or apply any of the strategies under PHARMAC’s OPPs to the Pharmaceutical, which may include: (A) entering into negotiations or arrangements with other suppliers for the listing of other brands of the Pharmaceutical at any time on the Pharmaceutical Schedule; and calling for a further tender of the Pharmaceutical, which may result in the delisting of your brand of the Pharmaceutical; and/or

(c)

(d)

(ii)

(B)

(iii)

subsidise the Pharmaceutical at a subsidy that is no greater than 120% of the Base Price.

5.

Dispute Over Price

(a) If there is a dispute between PHARMAC and you over any price calculation, which you and PHARMAC cannot resolve within five days of the dispute arising (the Initial Period), then, as soon as possible following the expiry of that Initial Period, PHARMAC and you are to appoint an appropriately qualified independent person to determine the price. If there is no agreement on a mutually acceptable person within 15 days of the end of the Initial Period, then the price is to be determined by an appropriately qualified independent person appointed for that purpose by the President for the time being of the Institute of Chartered Accountants of New Zealand. The independent person is to calculate the disputed price and, in doing so, is to be considered as acting as an expert and not an arbitrator. As soon as practicable after the date of the independent person’s appointment, and in any case no later than three days after that appointment, we shall both submit our calculations, in writing, to the independent person, together with any documentation supporting our calculations. The independent person is to provide us with a written determination of the price, including the calculations used to derive that price, no later than 14 days from the date

(b)

(c)

(d)

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of his or her appointment under paragraph (a) above unless we agree otherwise. The independent person’s determination of the price is to be final and binding on both of us. (e) The costs incurred by the independent person in completing his or her determination are to be shared equally by us, irrespective of the outcome of the determination.

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Schedule 7: Back-up Supply terms 1. Definitions

For the purposes of this Schedule only: Agreement means this Schedule Seven; Initial Stock means the number of Units of the Pharmaceutical that you must hold in New Zealand from the beginning of the Sole Supply Period until the earlier of: (a) (b) the date on which the Initial Stock is exhausted; or the End Date,

(being the same number of Units as specified in your Back-up Supply Submission Form, or as otherwise agreed between you and PHARMAC); Pharmaceutical means the relevant Tender Item for which you have submitted, and PHARMAC has accepted, a Back-up Supply Bid; Reimbursement Sum means the sum to be paid by PHARMAC by way of reimbursement for any Unsold Stock in accordance with this Schedule; and Unsold Stock means any Units of the Initial Stock (or any additional stock of the Pharmaceutical that PHARMAC has requested you to purchase under clause 5 of this Schedule) that has not been sold by you to wholesalers and other distributors during the Sole Supply Period.

2.

Application of Schedule Five terms

The following terms in Schedule Five form part of this Agreement (incorporating any alterations or modifications necessary to give effect to those provisions in the context of this Schedule): (a) (b) (c) (d) (e) (f) (g) clause 1 (OPPs and amendments to the Pharmaceutical Schedule); clause 3 (consents); clause 4.2 (supply price); clause 4.3 (warranty that not less than cost price); clause 5.2 (general indemnity); clause 6.2 (Crown direction); and clause 8 (litigation support, dispute resolution, advertising, no waiver, entire agreement, amendments, and jurisdiction and governing law).

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3.

Initial Stock

(a) You must ensure that at all times during the Sole Supply Period you have the Initial Stock available for immediate supply to wholesalers and other distributors. You must manage the inventory of the Initial Stock so as to ensure that at any time throughout the Sole Supply Period the Initial Stock will not expire in the next 12 months.

(b)

4.

Notification of need for Back-up Supply

At any time during the Sole Supply Period, PHARMAC may notify you in writing that you are to supply the Pharmaceutical with effect from the date specified in the notice (which date will take into account the lead-time specified in your Back-up Supply Submission Form), in which case: (a) you must supply the Pharmaceutical to wholesalers and other distributors: (i) (ii) at the Price; and from the date specified in the notice until: (A) (B) (b) PHARMAC advises you to stop supplying the Pharmaceutical; or the Initial Stock is exhausted; and

you must advise PHARMAC of your stock levels of the Pharmaceutical on a weekly basis, and at such other times as requested by PHARMAC, during that period of supply.

5.

Additional Supply

PHARMAC may require you to continue to supply the Pharmaceutical after the Initial Stock is exhausted, in which case: (a) PHARMAC will give you as much notice as is practicable (and in any case no less than four weeks notice) of that requirement prior to the exhaustion of the Initial Stock; PHARMAC will advise you of the length of time it requires you to continue to supply the Pharmaceutical; you must use your best endeavours to purchase additional stock of the Pharmaceutical in order to supply it for that period; and PHARMAC will reimburse you: (i) an amount calculated in accordance with clause 6 of this Schedule for any such additional stock that remains unsold at the End Date; and for any additional costs reasonably incurred by you in purchasing that stock, provided that you have obtained the prior written approval of PHARMAC to such expenditure.

(b)

(c)

(d)

(ii)

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6.

Reimbursement for Unsold Stock

Subject to clause 7, PHARMAC agrees to pay to you a Reimbursement Sum equal to the price per Unit of the Pharmaceutical (being the Price divided by the number of Units in the pack), multiplied by the number of Units of the Pharmaceutical that comprise the Unsold Stock (as determined by the independent person in accordance with clause 8 of this Schedule).

7.

Conditions of reimbursement

(a) PHARMAC will pay the Reimbursement Sum to you provided that: (i) all necessary Consents for the Pharmaceutical are held until at least 30 June 2006; the Unsold Stock has an expiry date recommended by the manufacturer that is no earlier than 30 June 2006; the Unsold Stock is of merchantable quality; and the Unsold Stock remains in the original packaging in which it was, or was to have been, made available for retail sale and the batch number and recommended expiry date are not obscured or obliterated from that packaging.

(ii)

(iii) (iv)

(b)

You acknowledge and agree that, immediately following payment by PHARMAC of the Reimbursement Sum, PHARMAC will be deemed to be the owner of all of the Unsold Stock free from any encumbrance.

8.

Calculation of reimbursement

The Reimbursement Sum is to be calculated in accordance with the following provisions: (a) a stocktake of the Unsold Stock is to be conducted on a date no earlier than the End Date. You are to give PHARMAC at least 20 business days prior written notice of the date on which that stocktake is to be conducted; the stocktake is to be carried out by an independent person appointed by PHARMAC and you or, if agreement on an acceptable person cannot be reached within seven days of the date you notify PHARMAC that you require a stocktake of the Unsold Stock, then by an independent person nominated by the Institute of Chartered Accountants of New Zealand for the purpose of carrying out the stocktake; the independent person is to determine the number of Units of the Pharmaceutical comprising the Unsold Stock which (on the basis of the criteria set out in clause 7 of this Schedule) are to be taken into account for the purposes of determining the Reimbursement Sum; the independent person will be required to complete his or her inspection, and to provide a written determination in that regard, within seven business days of acceptance of his or her appointment or nomination;

(b)

(c)

(d)

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(e)

the independent person’s determination is to be binding on both you and PHARMAC. In carrying out his or her inspection, the independent person is to be considered as acting as an expert and not as an arbitrator; and the costs incurred by the independent person in completing his or her inspection are to be met by PHARMAC.

(f)

9.

Payment of reimbursement amount

The Reimbursement Sum is to be paid to you by PHARMAC within 60 days of the final calculation being made in accordance with this Schedule.

10.

PHARMAC’s rights in relation to the Unsold Stock

Once PHARMAC has paid the Reimbursement Sum to you, PHARMAC may, at its option: (a) (b) take possession of the Unsold Stock; list the Pharmaceutical on the Pharmaceutical Schedule and require you to sell the Unsold Stock, in which case, you must repay the Reimbursement Sum to PHARMAC, less all reasonable costs incurred by you in selling that stock; or take any other action that is sees fit in relation to the Unsold Stock.

(c)

11.

Payment for stock-holding costs

(a) In addition to the Reimbursement Sum, PHARMAC agrees to pay you, within 60 days of the End Date, an amount for stock-holding costs for the Unsold Stock equal to: (i) (ii) (iii) (b) 15% of the Unsold Stock as at 30 June 2003; plus 15% of the Unsold Stock as at 30 June 2004; plus 15% of the Unsold Stock as at 30 June 2005.

For the purposes of calculating the amount of Unsold Stock as at the dates specified under paragraph (a), PHARMAC may, on or about those dates, request a stocktake of the Unsold Stock to be carried out in accordance with the provisions of clause 8 of this Schedule (incorporating any alterations and modifications necessary to give effect to that provision in these circumstances).

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Metadata

Title

Invitation to Tender - sole subsidised supply of pharmaceuticals

Abstract

PHARMAC invites tenders for the sole subsidised supply of certain pharmaceuticals in New Zealand. This invitation to tender incorporates the following schedules: (a) (b) (c) Schedule…

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