EoECPH - Pharmaceutical Wholesale Services

The Commercial schedule is comprised of discounts offered and innovative pricing

The market can be categorised into contracted lines, non-contract (agency lines) and non-contract lines eligible for discount, the focal point of the commercial element of this framework agreement.

Innovative offers will not be evaluated as part of the commercial offering but will be considered by local trusts when selecting the most appropriate bidder for their specific service and requirements.

The projected value of service delivery, inclusive of all medicines expenditure under this framework, is estimated at £15,000,000,000 (£15billion) over the four years contract period. The proposed figure accounts for growth in this service area. The proportion of spend considered influenceable has been calculated at approximately 1.2% of the total contract value.

Influenceable Spend

• Includes products defined by the wholesalers as ‘Qualifying Non-contract lines’. The products defined under this term will vary throughout the life of the framework agreement. Each participating wholesaler will negotiate existing and new medicine distribution contracts with participating manufacturers. EoECPH have no influence on which manufacturers and products are defined as ‘Qualifying Non-contract lines’.
• Where wholesalers provide their ‘Qualifying Non-contract line’ product list EoECPH may be able to influence through the procurement of Pharmaceutical wholesale Services.
• We estimate this to be on average 1.2% of the total annual spend through the framework. This figure is based on the current EoECPH framework which is in year 4 of its 4 year term.

Non Influenceable Spend

• EOECPH will not ask bidders to submit prices for the medicines purchased.
• NHS Contract Medicines prices are set through frameworks managed by NHS England Medicines Procurement and Supply Chain team
• EOECPH is unable to influence these prices.
• Wholesalers distribute a large proportion of MPSC NHS contracted medicines. Therefore total spend through the wholesaler services framework reflects this spend value.
• Non contract (Non-Qualifying Agency lines) - Pricing is agreed between the manufacturer and wholesaler.
• EOECPH is unable to influence these prices.

Total Spend

• This is the ‘headline’ figure.
• Combined influenceable and Non Influenceable Spend (MPSC NHS contracted lines + Non-contract agency lines).
• We estimate this total combined medicines spend could be up to £15bn over the 4 year term.

The above figures include the 7 regions nationwide. This figure may change if further information comes to the attention of EOECPH. High level Spend data has been sourced using Exend (RxInfo software) NHS Medicines spend data to obtain an indicative National picture. High level data provided by two of the four main suppliers on the current framework supports the proposed spend value.