This is the example of how Ukraine, through the national procurement agency, is able to negotiate directly with the producers of the medicines and effectively compete on the global market, receiving profitable prices and delivery conditions.
Remdesivir (TM Veklury) is developed by the company Gilead Sciences, Inc. This is the first medicine that showed effective results during the experimental treatment of the COVID-19 patients. Usage of the Remdesivir is temporarily approved for the treatment of the patients in 50 countries. Remdesivir is being purchased by the USA, EU, Great Britain, Israel, Japan, Singapore, UAE, Thailand etc.
On 8 October 2020 optimistic results of the 3d phase of the treatment of the patients had been published in the New England Journal of Medicine. The research had been conducted by the National Institute of Allergy and Infectious Diseases (NIAID) and included 1060 hospitalized patients all around the world. Recently the results of the independent research Solidarity done by the WHO had circulated in the media. The organization states that none of the four drugs studied produced any measurable benefit in mortality or disease course. This includes Remdesivir—a drug already recommended by several guidelines and pre-ordered by numerous governments around the world. This research had not yet been peer-reviewed by the scientists and had not yet been published in any scientific journal.
Before the outbreak of the pandemic, only Gilead Sciences, Inc produced Remdesivir. The production time varied from 9 to 12 months. The request for the medicine increased, when it was used for the successful treatment of the COVID-19 patients. Gilead Sciences, Inc was unable to produce the medicine to cover the global demand. Moreover, the price of one vial of the original medicine produced by the Gilead Sciences, Inc was too high - 390 USD. The company provided temporarily licenses for the production of the Remdesivir to several grand manufacturers from Egypt, India and Pakistan (they use the original documentation, however, produce medicine for the lower price). The agreement gives the possibility for the companies to produce and sell Remdesivir to 127 countries, among which is Ukraine.
In September MoH of Ukraine ordered SE “Medical Procurement of Ukraine” to purchase 18 thousand vials of the medicine, with the estimated procurement budget of 46 mln UAH or 96 USD per pcs (2,7 thousand UAH). MPU’s team negotiated with all 9 manufacturers and received the documents, needed for the transportation of the medicines of this kind, according to the legislation. As the result MPU was able to decrease the price of the pcs of the Remdesivir, which gave a possibility to increase the number of purchase vials from 18 thousand to 28 200.
As the result of the final negotiations the price was decreased to 24,25 USD per pcs (687 UAH per vial). The full sum of the deal was 19,3 mln UAH. The saved money, meaning 26,7 mln UAH, we are ready to spend for the additional number of the treatment, if there is the specific order of the MoH on this.
Manufacturer is ready to deliver the first half of the order shortly. Remdesivir was not registered in Ukraine. Therefore, for the transportation of this drug to Ukraine there should be the separate decision of the MoH. We provided all needed documents to the Ministry and are ready to start the delivery process as soon as the respective order will be issued.