More than 70% of medicines bought directly from suppliers - analytics of UNDP medicines procurement

Oct 24, 2017

The United Nations Development Programme has analyzed the procurement it conducted with the funds of 2016 state budget. According to the results, share of medicines bought directly from manufacturers comprised 71%, in contrast to 90% of the Ministry of Health tenders won by distributors in 2014 and earlier years - before the international procurement of medicines was introduced.

UNDP_MOH_Results 2016-EN

Out of the medicine producers, who supplied their products directly, Ukrainian manufacturers gained a significant share – 10 national manufacturers won UNDP tenders. Experience of cooperation with international organizations has opened doors for them to participate in international tenders, with one company having already won UNDP tender in Moldova.

The United Nations Development Program conducted procurement under 23 programs with 2016 budget funds and has demonstrated significant savings reaching 45% in 16 of those programs. Saved funds were used by the organization to procure extra amounts of medicines according to the needs. The generated savings allowed to cover 100% of the required medicines for patients with mucopolysaccharidosis. Extra 20% medicines were purchased for patients with Gaucher disease, additional medications were purchased for patients with pulmonary arterial hypertension and patients with other diseases. Providing patients with therapy helps Ukraine to progress towards the Sustainable Development Goals, in particular Goal #3 - Ensure healthy lives and promote wellbeing for all at all ages.

According to the law, UNDP can use the saved funds only after receiving official guidance on utilization of the saved funds from the Ministry of Health of Ukraine. For a number of areas where funds were saved, such guidance from the Ministry of Health is still expected.

Organization succeeded to purchase medicines at prices lower than last year. Compared to the 2015 prices, UNDP achieved a 10% price cut, which means an additional minimum of UAH 210 m would have been necessary to purhcase the same amount of medicines at 2015 prices. Such results were achieved through direct negotiations with producers and a high level of trust in international organizations.

The price difference compared with the regional procurement in Ukraine is up to 300% for the medicines of the same manufacturer. For example, the oncology medicine Bicalutamide-vista was bought by UNDP at a price of $ 0.19. In the Transcarpathian region, the same medicine was ordered at a price of $ 0.75, which is 294% more expensive.

At the end of July 2017, the United Nations Development Program and the Ministry of Health of Ukraine signed a new agreement for the procurement of medicines and medical products at the expense of the state budget in 2017. Procurement has already begun - the tenders are announced for all programs, which currently are part of the agreement.

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