[e-drug] New interagency guidelines on drug procurement

[hogerzeilh@who.ch]

E-drug: New interagency guidelines on drug procurement
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Dear e-druggers,

I am pleased to announce the new interagency Operational Principles for 
Good
Pharmaceutical Procurement, issued by the WHO Department of Essential Drugs 
and
Other Medicines on behalf of WHO, The World Bank, UNICEF and the UNFPA.

The document is published on the WHO/Medicines website 
(www.who.int/medicines/)
under Information: Publications: EDM library: Supply and Marketing. 
Currently it
is only available in English, but French and Spanish translations are being
prepared.

This is the text of the relevant WHO Press Release:

"Some countries routinely pay 150% to 250% of world market prices for the
essential drugs, while other countries complain of unreliable suppliers and 
poor
quality drugs", stated Dr Hans Hogerzeil, of WHO's Essential Drugs and 
Medicine
Policy Department, at the launch of the guide Operational Principles for 
Good
Pharmaceutical Procurement.

Improper procurement practices lead not only to high prices and poor 
quality,
but can also result in shortages of life-saving drugs. "When lax drug
procurement systems lead to national shortages of one or two drugs in a
four-drug tuberculosis treatment regimen, treatment failures increase and
resistance can quickly develop to those drugs still in stock", commented Dr
Hogerzeil.

Produced by the Interagency Pharmaceutical Coordination (IPC) Group, the
Operational Principles aim to assist national governments, donor agencies 
and
other organizations involved in drug procurement to obtain lower prices, 
better
quality, and more reliable delivery of essential drugs. Consisting of the
pharmaceutical advisers of UNICEF, UNFPA, the World Bank and WHO, the IPC 
is
especially well placed to advise on how drugs of assured quality can be
purchased more effectively and more cheaply.

The need is great - one-third of the world's population lacks regular 
access to
good quality essential drugs. In poor populations adults and children die
needlessly of treatable diseases such as malaria, acute respiratory illness 
and
diarrhoeal diseases. Poor pharmaceutical procurement practices are partly 
to
blame.

Good procurement - getting quality medicines to people when and where 
needed
Procurement is the sum total of processes involved in the purchase and 
delivery
of drugs. Ideally, the most cost-effective drugs are bought in the most
appropriate quantities from reputable suppliers, delivered where and when
required, at the lowest possible total cost.
Experience shows, however, that the process can go badly awry. The number 
of
different agencies involved in procuring drugs - including ministries of 
health,
manufacturers and donor agencies - can render the process highly complex 
and
vulnerable to inefficiency and waste. Other problems such as corruption and 
lack
of transparency, lead to lack of competition with fewer choices, higher 
prices
and poorer quality. At the same time, irregular and limited funding can 
greatly
hinder efforts to secure timely delivery of drugs. External funding from
international agencies or bilateral donors sometimes helps. Outdated local
regulations and supply procedures not suitable for the special requirements 
of
buying pharmaceuticals can further complicate the problem.

The Operational Principles tackle these problems by providing a solid basis 
to
help ministries of health, donor agencies and others to harmonize their 
drug
procurement practices. Grouped into four categories, the 12 principles 
cover:
(i) transparent management, (ii) selection and quantification, (iii) 
financing
and competition, and (iv) supplier selection and quality assurance.
Even without appropriate policies and procedures, lack of properly trained
personnel can doom a procurement system to failure. So, as well as advising 
on
best procurement practices, the Operational Principles are intended for use 
in
training staff responsible for drug procurement.
"The complex process involved in efficient and effective drug purchases is
clearly presented in the document", comments Dr Ramesh Govindaraj,
Pharmaceutical Advisor for the World Bank. "If the principles are observed, 
the
ultimate result will be more essential drugs for less money, better quality 
and
fewer deaths from malaria, tuberculosis, childhood illness and other 
treatable
causes".

(end of press release)

With best regards,

Hans V. Hogerzeil  MD, PhD, FRCP (Edin)
Coordinator for Policy, Access and Rational Use
Department of Essential Drugs and Medicines Policy
World Health Organization, 1211 Geneva 27
hogerzeilh@who.ch

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