Saving, transparency, social control and preference to national industry are the axes of the drugs procurement.

On January 6^th during the evening hours at the SENPLADES auditorium in Quito, the procedure of the Corporate Reverse Drugs Bidding (SICM”) was socialized with more than 200 representatives of the national pharmaceutical companies, as well as its regulations and the preference margin that local industry will have.

There are 425 types of drugs that have their corresponding referential amounts for multiple diseases related to the alimentary tract and metabolism, cardiovascular, nervous, and dermatological systems and anti-infectious and anti-parasitic drugs, among others. During the socialization, the National Health Governance Undersecretary, Gina Reyes informed that the Public Health Ministry in coordination with IESS (Spanish acronym for Ecuadorian Institute of Social Security), ISSFA (Spanish acronym for Institute of Social Security of the Armed Forces) and ISSPOL (Spanish acronym for Institute of Social Security of the Police) determined the drug needs, in accordance to the epidemiology of the existing pathologies, to the monthly average consumption and to the yearly requirements of the health centers and sub-centers of the country.

The SICM procedure contemplates the following stages: 1) Preparatory; 2) Pre-contractual; 3) Contractual; 4) Evaluative or Post-contractual. The preparatory phase which started in August 2015 and concluded in December, enabled the public institutions that are responsible for the drugs purchase to execute diverse activities such as: design and implementation of the new technological platform, specifications elaboration, process socialization at national and international level, national and international suppliers registration, information update of registered suppliers, participative dialogue and social control development, preference margin definition, referential prices collection, and receipt of comments to the drugs technical data sheets.

The pre-contractual phase will start on Thursday January 14^th, 2016 with the publication of the specifications and will conclude on May this year with the awarding of 425 of drugs types. The defined schedule is the following:

The deputy General Director of SERCOP, Juan Pablo Bermeo explained that the call to participate in the drugs purchase process is addressed to Ecuadorian and foreign natural individuals and legal entities. He emphasized that in case of those foreign companies that are interested in participating; they shall have domicile in our country or have a legal representative or attorney who is domiciled in Ecuador.

At the Drugs Corporate Reverse Bidding the Government will have savings of at least 110 million dollars because the companies will offer downward. “The initial economic offer shall be less than the unit referential budget of each drug type in at least 1%” stated the head deputy of SERCOP.

Meanwhile, the National Agency for Regulation, Control and Health Surveillance (ARCSA) through its representative Milton Medina, Health Registration Technical Director explained that the health registrations of those companies that win the bidding will be issued, once it has been determined that “all the drugs fulfill the requirements demanded in the Law”.

The contractual business relationship between the Government and the pharmaceutical companies will last 24 months, which means that during this term there will be exclusivity for those companies that were awarded, to supply drugs to the RPIS (Spanish acronym for Public Integral Health Network)

Preference for national industry (Document)

The Ministry of Industry and Productivity (MIPRO) defined the preference margins that the Ecuadorian drug manufacturing companies at the Corporate Reverse Bidding will have.

According to the Industrial Protection Director, Andres Mendoza, the preference maximum will be 17,5%, which will allow to achieve a “macro fiscal balance by maximizing criteria like national employment protection and current outflow avoidance”.

Preferences will be applied to those companies which produce drugs in the country and are registered in the Pharmaceutical Manufacturers Industrial Register. To be part of this Register the companies must accept the verification by MIPRO of their manufacturing plants and production lines of those drugs that are part of the SICM. One of the details that this institution reviews is the existence of Good Manufacturing Practices.

The variables defined by the MIPRO to achieve that 17,5% are:

• 10% is granted to the companies that are part of the Industrial Register.
• Proportional 5% – 2 % according to the companies Ecuadorian Aggregated Value (VAE).
• Proportional 5%, depending on the companies export amount.

In other words, those national companies that are drug producers (with manufacturing plants and production in the country) and incorporate a national high component and that achieve suitable drug export levels will be able to access to the 17,5% preference over other proposals that foreign companies may present.

Mendoza said that there are 39 drug manufacturing companies in our country; a number that could increase since in the next weeks MIPRO expects some visits to some pharmaceutical companies to verify their production plants.

The closing of the Pharmaceutical Manufacturing Industrial Registration will be “the day before proposals presentation to the SICM” said the technician.

Citizen Oversight will be integrated in the next days

“We are here as part of the transparency function, as the Institution in charge of surveilling and complying with the enforcement of the rights and duties of the citizens” announced yesterday, Margarita Barrezueta, specialist of the Council for Citizen Participation and Social Control.

As part of the preparatory stage of the Corporate Reverse Drugs Bidding, SERCOP requested the support and accompanying Council for Citizen Participation and Social Control for the purpose of implement actions that make the purchase of the 425 drugs transparent. This initiative had an immediate answer which crystallized on October 20^th , 2015, when the authorities of SERCOP and CPCCS, Santiago Vasquez and Raquel Gonzalez, respectively, subscribed an agreement which allows the permanent execution of the citizen participation in public purchases.

The representative of CPCCS explained that the inscriptions stage to integrate the oversight concluded satisfactorily and that in the next days this body will formally be constituted. “The Oversight is a civic and voluntary exercise, its task will conclude parallel to the completion of the Drugs Corporate Reverse Bidding” said the officer.

To take into account:

• Yesterday, during the socialization of the SICM before representatives of the local pharmaceutical industry, the president of the Health and Drugs Observatory of the Central University, Raul Teran, said that “Ecuador has infinite expectations with the quality drugs purchased at a low price”. For the pharmacology doctor, with more than 40 years of experience, a drug is not an ordinary good; it is a social good because the life of a patient is involved”. Likewise, Teran stated that there are many financial interests and that it is the duty of the state to guarantee the public health prevails over commercial interests.
• The Corporate Reverse Drugs Bidding will be executed by means of a technological platform with high security levels, in an isolated environment with institutional surveillance. SERCOP, as a strategic institution for the Government, is part of the cyber security group, which is led by the Security Coordinator Ministry; hence this entity, as well as the Intelligence National Secretary, participate actively in this initiative.


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Press Release # 02
August 21, 2015


            Ecuador is getting ready to buy medicines from national and international suppliers

            



This last Thursday, August 20th, at the auditorium of the Institute of High National Studies (IAEN - acronym in Spanish), about 200 representatives of local pharmaceuticals and drug distribution firms participated in the Drug Advisory Board meeting.

At this meeting, officials of the National Public Procurement Service (SERCOP- acronym in Spanish) presented the methodology that will be used in the next Corporate Reverse Drugs Bidding (SICM 2015).

"More than the buying and selling of pharmaceuticals, this is the purchase of medicines for citizens and public hospitals," said the Deputy General Director of SERCOP Juan Pablo Bermeo. He also cited Article 363 of the Constitution of the Republic of Ecuador, which provides that "when it comes to the access to medicines, public health interests prevail over economic and trade ones".

The deputy director of Control of SERCOP Victor Argoti noted that the purpose also is to acquire quality generic drugs with favorable prices for Ecuador. "At lower price, the country could acquire higher quantity of drugs. We want to make the Corporate Reverse Drugs Bidding a national and regional benchmark for transparency, due to the ease of access to participate in processes like this, which guarantee the right to health care and to a decent service. "

It has been taken technical measures and implemented fair conditions in the Corporate Reverse Drugs Bidding (SICM 2015) for both domestic and international suppliers, and above all, thinking about the common good, in the majority, to generate greater savings to the nation. At the same time the social benefit of SICM 2015 translates into an improved service quality and greater breadth of health care coverage, because at lower prices, more medication can be acquired.

One of the requirements to participate in the Corporate Reverse Drugs Bidding is that suppliers must be registered and enabled in the National Register of Suppliers (RUP), and if one wins, as a firm will have 60 days to submit documentation to qualify for the final award. Suppliers can update and register their information through the website of the SICM 2015 at the following link: https://subastademedicamentos.compraspublicas.gob.ec

During the Drug Advisory Board meeting, was made known that there will be quality tests. The winners must demonstrate to the National Agency for Regulation, Control and Health Surveillance (ARCSA - acronym in Spanish) the quality of the drugs. And the National Drug director of the Ministry of Public Health, Sonia Brazales, explained that the drugs of the SICM 2015 are the ones of the National Drug Table contained in the ninth revision.

DOWNLOAD PRESENTATION: Presentation Drug Advisory Board 20/08/2015


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PRESS RELEASE # 01
August 17, 2015


               Health care as guaranteed right for all the population with generic drugs!





On September 3, 2015 the Public Procurement Website will be activated from 00h00 so that suppliers of drugs for human consumption participate in the Corporate Reverse Drugs Bidding (SICM 2015).

Corporate Reverse Drugs Bidding is about 414 types of medications that are part of the National Table of Basic Drugs (the 9th. Review). This represents the purchase of approximately $ 500 million. In total, 6,604 health units, that are part of the Public Integral Health Network, will receive stock for two years, according to the specific delivery schedule, and after they have been published in the Drugs e-Inventory (electronic catalog) that is managed by the National Public Procurement Service (SERCOP).

The list encompasses drugs for the digestive tract and metabolism; blood and blood formed organs; cardiovascular system; dermatology; genitourinary system and sex hormones; Systemic hormonal preparations; Anti-infectious drugs for systemic use; antineoplastic and immunomodulation agents; musculoskeletal system; nervous system; antiparasitic products; respiratory system and sense organs.

The Ministry of Health (MSP), the Ecuadorian Social Security Institute (IESS), the Social Security Institute of the Armed Forces (ISSFA) and the Social Security Institute of the Police (ISSPOL) compiled the demand for drugs. The articulation of these entities with SERCOP expresses the technical and political commitment to improve service delivery in the health sector to ensure such fundamental right.

With the Corporate Reverse Drugs Bidding (SICM 2015), public procurement in the health sector is articulated to increase the effectiveness in the procurement processes; the economic saving of Ecuadorian is increased; the effectiveness and transparency of the National Public Procurement System is enhanced. This implies, a reduction in cost and time in the procurement of drugs and decreases variability in drug prices with similar characteristics; There is also a reduction in the administrative burden and operating cost by using a single purchase procedure.

The SICM 2015 also encourages the participation of as many national and international suppliers. For this reason it was implemented an electronic system with zero policy papers, for greater flexibility, efficiency and transparency. Additionally, the requirements to be submitted ex ante by suppliers were reduced to facilitate their access as part of this process.

Procedure

Suppliers of national and international drug shall update or register, if it's the first time, the information in the Registry of Suppliers (RUP). After it they will receive an invitation to participate in the process. On September 1st, 2015 SERCOP's institutional Website will be activated for those interested to ask questions which will be answered by the Technical Commission.

Next day, the bidders will submit the economic offers and after the stage of errors validation, bids will be qualified. In the phase known as reverse Bid or auction, suppliers will bid to lower the price, being awarded those that bid the lowest price. The final award declaration shall be issued once the winners submit all documentation, including medical records issued by the National Agency for Regulation, Control and Health Surveillance (ARCSA). Finally, the General Agreements shall be signed and the drugs purchased are to be cataloged.