Price negotiations and effective competition


Amgros manages procurement of almost all the medicine used in Danish public hospitals. It is our task to organise tendering procedures for pharmaceuticals so that we cover hospital needs and at the same time sharpen competition as much as possible. This applies to new drugs on the market, drugs with analogue competition and generic pharmaceuticals. This page contains more about the process for the individual types of pharmaceuticals and the role of Amgros.


Pharmaceutical lifecycle

It is important for Amgros to be at the leading edge of the rapid developments in the global pharmaceuticals market. Therefore, we are systematically monitoring individual pharmaceuticals and their positions in what we call the pharmaceutical lifecycle, which overall comprises six stages:

Stage 1 is where a brand-new patented pharmaceutical is introduced on the market. At this stage, Amgros can negotiate a price lower than the supplier's list price. Read more about this process under New pharmaceuticals.

At stages 2-4, other similar pharmaceuticals with the same effect, but another primary ingredient, enter the market. If these pharmaceuticals are approved for the same treatment, there will be analogue competition.

At stages 4-6, the patent for the pharmaceutical has expired, and there will be generic competition. Competition can be very intense during these stages, and usually there will be a strong downward pressure on prices.

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Price negotiations and effective competition

New pharmaceuticals

If a new drug is to be considered as a standard treatment at Danish public hospitals, the Danish Medicines Council has to assess it first.

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Price negotiations and effective competition

Analogue competition

When the Danish Medicines Council is to assess several pharmaceuticals within the same therapeutic area, it prepares treatment guidelines.

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Price negotiations and effective competition

Generic pharmaceuticals

When the patent on a pharmaceutical expires, and generic or biosimilar alternatives enter the market, Amgros’ task is to ensure the widest possible competition.

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