The Government of Honduras has overturned a drug tender for $24.4 million and announced that the purchase will be made through a trust with private banks.
Elheraldo.hn reports that "the purchase was declared unsuccessful based on the State Procurement Act being contrary to national interests in virtue of the fact that it involves the purchase of medicines at a higher price than currently received by the Health Department through a trust with the private banking system".
The second bidding process for supplying medicines for health centers is expected to start this week.
The $10 million is part of a trust given by the Honduran government to Banco de Occidente to acquire the drugs, said the head of the Central Medicine Store, Martha Escobar.
She added that the conditions are ready for a second tender to be held in a transparent manner, as there is "no money under the table".
Although there are $5 million available for the purchase of medicines in the University Hospital, not one pharmaceutical company has submitted bids.
"We currently have funds in excess of $5 million, funds that we havent been able to use due to a lack of offers and we have to find a way out of this situation," said Julieta Castellanos, rector of the National Autonomous University of Honduras (Unah).
The arrival of Honduran chain Kielsa has raised fears over a market takeover and monopolistic practices.
"This is a Honduran chain entering the market using the hook of discounts and low prices, supposedly favoring large wholesalers, bankrupting small and medium business, and without any counterbalancing competition, they are the owners of the market," said the president of the United Pharmacy Association of Nicaragua (AFUN), Alberto Lacayo.
A new tender will be launched in three weeks, with corrections to the administrative errors that caused this cancellation.
The bidding process was declared void because there was no publication in the official newspaper La Gaceta as required by law.
"It has been explained that because of a point of law there was no advance publication in La Gaceta and this formality, which is fundamental, makes it necessary to restart the process at the earliest opportunity," said German Enamorado, a Human rights public prosecutor.
The 123 products for which there were no offers in the recent tender, will be purchased abroad through international organizations.
Due to the low participation of bidders (9 out of 32 companies who purchased the bidding rules), only 197 products out of a total of 320 could be offered in a tender issued last week. Therefore the 123 products that were left out will not be awarded, but instead acquired through international mechanisms, said Fuad Hasbum, president of the National Association of Drugstores.
The debts owed to suppliers amount to $33 million for medicines and a further $40 million for medical equipment.
Laprensa.hn reports that "the debt to medical providers has reached $73 million, of which 23 drugstores are claiming $33 million as a result of tenders and direct sales of medicines since 2010, while another $40 million corresponds to pending payments to 12 companies who distribute medical and surgical equipment. "
National pharmaceutical companies will not be able to provide medicines to the government, which owes them more than $30 million for previous purchases.
Laprensa.hn reports that "The authorities of the Ministry of Health announced yesterday that the upcoming auction of medication may be awarded to international companies."
"The government owes about 600 million lempiras to national pharmacists, who have repeatedly said they will not participate in the tender for 2013, as they have no production capacity. The problem is that medicine businesses have undercapitalized their industries by granting multi million dollar loans to the State due to the lack of financial liquidity that for years has characterized government administrations. "
Guatemala did not participate in the final joint price negotiations and purchase of medicines at the regional level in the month of June.
Since 2008, Guatemala has not participated in any regional purchase of medicines, missing out on the opportunity to make savings by buying in bulk.
The negotiations ended in June with six pharmaceutical companies, for the purchase of 19 drugs, representing savings of $16 million for the region, "...
The Central American countries will be planning another annual purchase, this time of 78 drugs.
In 2012, the Ministry of Health of Honduras and counterparts from Central American plan to buy 78 types of drugs.
"The ones we bought last year were anticancer medicines, drugs for HIV, hematoncology medicines, where we had a very important savings of more than 25 percent," said Health Minister Arturo Bendana to Elheraldo.hn.
The country is to implement a so-called "reverse auctions" and price catalogs, with which they intend to save $12 million a year.
The authorities want to replicate a method practiced in Colombia which has enabled "extraordinary" savings, lowering prices by up to 40%, said the Honduran Minister of Health, Arturo Bendaña.
The ministry has budgeted to spend $31.49 million (600 million lempiras) on drugs in 2012, and using reverse auctions and catalogs, expects to save at least $12 million, reports Tiempo.hn.
The Social Security Institute has invited local and foreign companies to bid in a tender for the supply of medications.
The terms of reference of the acquisition entitled "NATIONAL PUBLIC TENDER No. 002-201" listed 434 different drugs and the respective amounts required by the Institute.
40% of the required medicines should be delivered up to 45 days from receipt of purchase of the order, 30% up to 75 days later, and the remaining 30% after 105 calendar days.
The purchase is intended to meet the demand for medicines nationwide.
Mario Najera, from the Ministry of Health, noted that twenty pharmaceutical entities that conform to the tenders legal standards are participating in the bidding process.
Proceso Digital published on its website, "According to Najera, the tender is being made to 'avoid the shortage of drugs at national level and show the Honduran people clearly that medicines can be acquired by the Secretary of Health'."
Over 100 experts from Latin America and the United States, plus observers from Switzerland, the United Kingdom, Spain and Austria, participated in the III annual conference for pharmaceutical regulation in the region.
The event was organized by the Food and Drug Administration of the U.S. and sponsored by the Panamanian Health Ministry. Participants discussed drug control, registry, verification and supply chain security.
The Health Ministry announced the purchase of drugs medicines to pharmacies in order to supply the country's hospital network.
Health Minister, Arturo Benda, said the purchase will seek to cover supply of 453 essential medicines. He added that to participate in the bidding process suppliers must be registered with the Department of Health.
"... said he will focus on chronic disease medicines which if interrupted, could endanger the lives of patients such as hypertension, diabetes, epilepsy, cancer and HIV / AIDS," reports Digital Process on its website.