PUTRAJAYA, Sept 23 — The Ministry of Health (MOH) has decided to mandate, under certain circumstances, at least two suppliers in the procurement of pharmaceuticals and medical devices to improve medicine security.
MOH deputy secretary-general (finance) Norazman Ayob explained that this was part of the ministry’s reform of its procurement processes.
“There must be at least two suppliers in certain tenders for not just drugs, but also medical devices, to boost our country’s medicine security,” Norazman told CodeBlue.
He said the MOH has reached out to local pharmaceutical manufacturers and suppliers and industry associations – such as the Malaysian Organisation of Pharmaceutical Industries (MOPI) and the Malaysian Association of Pharmaceutical Suppliers (MAPS) – to manufacture and supply generics to the ministry, especially products that are still listed with single product registration holders (PRH).
The requirement for double suppliers applies to single-PRH products involving off-patent drugs with only one supplier (manufacturer or trader) in the country.
By having more than one supplier in Malaysia, the MOH seeks better value or price in tenders issued due to competition between bidders.
The New Straits Times reported last September 5 that the Malaysia Competition Commission (MyCC) was investigating the involvement of 13 bid-rigging cartels in government tenders worth RM2.37 billion. These cartels allegedly cover 561 companies in various industries, including pharmaceuticals.
Norazman also said the MOH wants the right to renegotiate contracts with pharmaceutical manufacturers and suppliers if a second supplier offers a lower price.
“If we find another supplier with a lower price, we’ll renegotiate our contract with the first supplier.”
The government’s right to renegotiate prices will be incorporated in the contract awarded to the supplier that wins the supply tender.
“We also welcome producers from other countries, such as China, India, Turkiye, and others, who would like to register their products with our National Pharmaceutical Regulatory Authority and subsequently market these products in Malaysia,” Norazman said.
MOF Funding Secured For SGLT2 Inhibitors, Insulin Analogs
Amid the country’s unprecedented shortage of human insulin, Norazman said the MOH managed to secure additional funding from the Ministry of Finance (MOF) to purchase more stocks of insulin analogs and SGLT2 inhibitors for diabetes patients.
CodeBlue previously reported Health director-general Dr Muhammad Radzi Abu Hassan’s August 21 circular announcing plans to switch nearly half, or 45 per cent, of diabetes patients currently on human insulin treatment to SGLT2 inhibitors or insulin analogs to deal with the human insulin shortage.
“SGLT2 inhibitors and insulin analogs are three times more expensive than human insulin,” Norazman told CodeBlue.
“But we managed to get MOF funding, so the immediate problem has been resolved.”
MOH failed to secure funding for SGLT2 inhibitors in 2022, due to the high cost of the relatively new class of drugs that eventually reduces the need for insulin as it enables the kidneys to remove sugar from the body through urine.
Putrajaya Hospital consultant endocrinologist Dr Zanariah Hussein told a forum last year that the MOH had estimated savings of about RM100 million over five years with SGLT2 inhibitors by preventing complications and reducing hospital admissions.
The drug is also used in people with chronic kidney disease (CKD) and heart failure to lower the risk of heart attack, stroke, and heart failure flare-ups; some of these inhibitors aid in slowing the progression of kidney disease.
A majority of the MOH’s supply of human insulin is currently supplied by Indian biosimilars company Biocon Biologics that operates Asia’s largest integrated insulin manufacturing and R&D facility in Johor. The remaining is originator insulin from Danish pharmaceutical giant Novo Nordisk.
Health Minister Dzulkefly Ahmad previously attributed the insulin shortage to Biocon’s alleged failure to meet its contractual obligations.
“We have received a few dossiers from alternative suppliers of human insulin,” Norazman told CodeBlue.
