Sanofi disturbs distributors with first vaccine bidding

Selected as a first choice in HPV vaccine bidding valued at KRW 6.3 billion baffles wholesale distributor

Withdraws bidding with unqualified review outcome

Distributor industry asks for mutual understanding to manufacturers

Sanofi Pasteur, a first pharmaceutical manufacturer to jump into the vaccine bidding market and stir up the pharmaceutical distributor industry, could not ink the final procurement agreement.

 

The company dropped its agreement offer as it failed to meet the bidder qualification standards.

 

A pharmaceutical distributor industry reported on Feb.

 

4, although Sanofi Pasteur won the military camp hepatitis A virus vaccine procurement bidding via the Korea Online E-procurement System late last month, the company did not pass the bidder review.

 

Valued at 6.3 billion won, the bidding was intensely competitive with total 47 companies participating.

 

And Sanofi Pasteur was the only pharmaceutical manufacturer among pharmaceutical distributor bidders.

 

Sanofi Pasteur apparently offered the lowest price among all bidders (80.576 percent of the previously procured price), and was selected as a top choice.

 

And the pharmaceutical distribution industry was thrown into turmoil as the multinational pharmaceutical manufacturer won the initial bidding.

 

So far, by tacit agreement, the vaccine bidding market was exclusively owned by distributors.

 

But Sanofi Pasteur broke the unspoken rule and entered the bidding.

 

And because of the surprise participation, the general bidding price dropped.

 

Sanofi Pasteur also joined the meningococcal vaccine bidding opened around the same time.

 

The company did not win the bidding, but the distributor industry definitely noticed the shocking action.

 

Regarding the distributor industry’s fierce disapproval, Sanofi Pasteur firmly responded the direct bidding participation is not problematic, but the company had an unforeseen issue.

 

The Public Procurement Service selected the multinational company as a top choice, but the manufacturer failed to meet certain conditions.

 

The government agency official said, “Sanofi Pasteur voluntarily withdrew from the bidding due to unqualified review score.

 

The agency is currently reviewing the second choice of the bidder.” It indicated the end of Sanofi Pasteur’s attempt in the bidding, but the industry is still tensed up from the happening, because a pharmaceutical manufacturer directly bidding for a government procurement deal could threaten the existence of the distributor industry.

 

The manufacturer also mentioned of possibly participating in other biddings in the future.

 

On Feb.

 

3, the Vaccine Business Committee associated under Korea Pharmaceutical Distribution Association was convened to talk about response strategy against similar prospective issues.

 

The committee stressed mutual understanding and consideration from the vaccine manufacturer and importer are needed, and agreed that the government and each pharmaceutical company should clarify their scope of bidding.

 

Particularly, the current bidding system only stipulates the basic qualification for the bidders to be a pharmaceutical wholesale distributor.

 

The committee members raised their voices that the regulation should be amended to consider a bidder’s refrigerated transportation and vaccine distributing capacity to properly select the winning bidder.

 

A pharmaceutical distributor industry insider said, “At the moment, the number of vaccine distributors is limited.

 

But if manufacturers start taking over the bidding, then vaccine distributors would be unable to survive the market.

 

Pharmaceutical manufacturers and distributors should form to a mutual relationship.” The association plans to disseminate official statement to each manufactures to request for cooperation, and to file a formal complaint to the authority to revise the relevant regulation.