The Danish Medicines Council applies the internationally recognised measurement unit QALY (quality-adjusted life years) to assess the effect of new medicines.
QALY is a standardised measurement that combines quality of life and survival. QALY can thus be used to compare health improvements across different diseases, treatment options and focus areas.
After the Danish Medicines Council has completed a clinical and health economic assessment of a new medicine, Amgros negotiates the price with the supplier.
On the basis of the assessment by the Danish Medicines Council and price negotiated, the Danish Medicines Council will decide whether the price of the medicine is reasonable in relation to its effect. And whether the Danish Medicines Council will recommend the drug as a possible standard treatment.
The purpose of the negotiations is to agree on a price level that gives a reasonable match between the effect of the medicine and costs compared with the current standard treatment.
Amgros bases its negotiations on the assessment report from the Danish Medicines Council and existing and future market conditions.
Negotiations between Amgros and the supplier can begin when the Danish Medicines Council's assessment report has been submitted for consultation with the supplier. The negotiations themselves take a maximum of 14 days. This means that there is only a short time for conducting a negotiation meeting between Amgros and the supplier.
At the negotiation meeting between Amgros and the supplier, the supplier can briefly present the medicine and the supplier's view of the assessment report from the Danish Medicines Council as the basis for price negotiations. There is also an opportunity at the meeting to clarify the content of the actual contract between Amgros and the supplier. However, this does not apply if the process started before the negotiation.
A negotiator and a health economist from Amgros take part in the meeting. The negotiator will be the supplier's contact person throughout the negotiation process.
After the negotiations with the supplier, Amgros will draw up a negotiation memo for the Danish Medicines Council. This memo contains the result of the negotiation and Amgros’ evaluation of the price level compared with existing and future market conditions.
After this, the Danish Medicines Council will decide finally whether it will recommend the medicine as a possible standard treatment at public hospitals.
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 public hospitals.
Amgros defines alternative agreements as all agreements other than those based on a “flat discount”.
Amgros applies a number of principles for using alternative agreement models to help ensure all suppliers are treated equally.
Read more about the principles, the negotiation process and the use of alternative agreement models.
If a new supplier has a need for dialogue with Amgros on the negotiation process and agreement conditions, we can arrange a meeting before negotiations commence.
There is more information here - How to become an Amgros supplier.
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Procurement and supply
Amgros informs the hospital pharmacies when we have set up an agreement to purchase a pharmaceutical. After this, hospital pharmacies send their purchase orders to the supplier
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Efficient changes of medicines
Amgros works closely with the regions - hospital pharmacies, pharmaceutical committees and clinical pharmacologists - to ensure that new medicines get into use rapidly as standard treatment at hospitals - and thereby get to patients quickly too. Together, we also ensure that the regions can reap the savings as soon as possible because the medicine will have been through our national tendering procedure.
READ MOREAlternative agreements
Amgros has been using alternative agreement models for several years. These ensure that patients have access to new, expensive and innovative medicines. We apply a number of principles for using alternative agreement models. Among other things, these principles ensure that all suppliers are treated equally.
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Marie Gerstrøm Kristiansen
Head of Horizon Scanning and New Medicines
I'm responsible for managing and developing tasks in Horizon Scanning and New Medicines, which e.g. negotiates prices and contract terms for the new medicines assessed by the Danish Medicines Council.