Drug Procurement, the Global Fund and Misguided Competition Policies

Malaria Journal 2009, 8:305, DOI:10.1186/1475-2875-8-305

4 Pages Posted: 19 Oct 2013

See all articles by Richard Tren

Richard Tren

Africa Fighting Malaria (US)

Kimberly Hess

Africa Fighting Malaria (US)

Roger Bate

American Enterprise Institute (AEI)

Date Written: December 22, 2009

Abstract

In an effort to increase competition and decrease price, the Global Fund to Fight AIDS, Tuberculosis and Malaria recently began asking some grant recipients to use international competitive bidding processes for certain drug purchases. Unfortunately, for countries like Kenya, this request has caused more harm than good. After awarding the tender for its annual supply of the anti-malarial artemether-lumefantrine to the lowest bidder, Ajanta Pharma, Kenya experienced wide stock-outs in part due to the company's inability to supply the order in full and on time. Similar problems could arise in Uganda. Despite Kenya's experience, Uganda has awarded its next tender for artemether-lumefantrine to Ajanta Pharma. Uganda is already facing wide stock-outs and risks exacerbating an already dire situation the longer it takes to fulfil the procurement contract. A tender process based primarily on price cannot account for a company's ability to consistently supply sufficient product in time.

Suggested Citation

Tren, Richard and Hess, Kimberly and Bate, Roger, Drug Procurement, the Global Fund and Misguided Competition Policies (December 22, 2009). Malaria Journal 2009, 8:305, DOI:10.1186/1475-2875-8-305, Available at SSRN: https://ssrn.com/abstract=2341933

Richard Tren

Africa Fighting Malaria (US) ( email )

Washington, DC
United States

Kimberly Hess

Africa Fighting Malaria (US) ( email )

Washington, DC
United States

Roger Bate (Contact Author)

American Enterprise Institute (AEI) ( email )

1150 17th Street, N.W.
Washington, DC 20036
United States

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