Principles for alternative agreement models make the process easier for suppliers


Amgros has set a number of principles for using alternative agreement models. These principles help ensure a more flexible negotiation process for suppliers, and that all suppliers are treated equally.

List of articles
1 SEPTEMBER 2022

For several years, Amgros has been using alternative agreement models, i.e. all agreements other than those based on a “flat discount”. Using alternative agreements means we can help ensure that patients have access to new, expensive and innovative medicines. We have now adopted a number of principles for how and when we use them. Moreover, we have done so by listening to our suppliers and consulting with our Nordic colleagues.

 The basis for the principles is that we always compare the costs and benefits of new agreement models.

“Working with alternative agreements is nothing new for Amgros. But these principles make our processes more transparent and flexible for suppliers. And they make sure that we treat all suppliers equally. Ultimately, the principles help support our work to secure new and innovative medicines for patients at Danish hospitals,” said Flemming Sonne, CEO of Amgros.

Alternative agreements help reduce uncertainty when the Danish Medicines Council assesses whether a new drug is to be taken into use as a possible standard treatment at Danish hospitals. If there is only sparse data on a new medicine at the time of approval, alternative agreement models can manage uncertainty and thereby help ensure that hospital patients have access to new, expensive medicines.

PRINCIPLES FOR ALTERNATIVE AGREEMENTS

The principles behind alternative agreements include that an alternative agreement must be as simple as possible and entail as little administration at clinics as possible.

An agreement should never restrict competition in the market, neither in the short term nor in the long term. 

Any supplier wanting to establish an alternative agreement can contact Amgros and arrange a meeting to discuss the agreement. We will hold the meeting after the Danish Medicines Council has received and approved the final application (day 0).

“Amgros assesses from case to case whether an alternative agreement can be a relevant model. But we always consult the supplier when we decide which alternative agreement model we can use in a specific instance,” said Flemming Sonne.

No matter which model is chosen, the Danish Medicines Council always decides whether it can recommend a new medicine or extension of indication as a possible standard treatment at Danish public hospitals. 

Read the principles in full here.

INSPIRATION FOR SUPPLIERS IN A NEW LIST OF ALTERNATIVE AGREEMENT MODELS

Amgros has prepared a list of different models for alternative agreements. The list has some good ideas for suppliers and will help them prepare for their dialogue with Amgros on a possible alternative agreement.

See the list of alternative agreement models (in Danish) here.

Karen Torgny

Senior communication specialist

I’m responsible for overall communication at Amgros, including PR. And I help to ensure that we communicate with the surrounding world in an open and engaging manner.