Alternative agreements at Amgros are agreements that apply instruments other than a flat discount.
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. This could be because of scant data at the time of approval. The various agreement models deal with different types of uncertainty.
Alternative agreement models can ultimately help secure patients access to new, innovative products in Denmark.
Amgros applies a number of principles for using alternative agreement models. Among other things, these ensure that we treat suppliers equally.
We have set the principles by listening to our suppliers and by talking with colleagues from other countries: and by always comparing the costs and benefits of new agreement models.
Contracts established by Amgros following a decision by the Danish Medicines Council are usually based on a flat discount. This means that we receive the same discount on all the packages of medicines we buy. Alternative agreements are agreements that apply other instruments than a flat discount.
In general, there are two types of agreement model: financially based agreement models and volume-based agreement models. List of models for alternative agreements (only available in Danish).
Amgros assesses whether an alternative agreement can be relevant from case to case.
An alternative agreement must be as simple as possible and entail as little administration at clinics as possible. If possible, it should be managed within the existing logistical and payment systems.
An agreement should never restrict competition in the market, either in the short term or in the long term.
In dialogue with the supplier, Amgros will decide which alternative agreement model can be used in a specific case.
In parallel with this, working with hospital pharmacies and relevant clinical departments, Amgros will make a technical assessment of how we can design an alternative agreement. This is to ensure that we can manage the agreement in practice.
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.
Amgros usually draws up agreements and terms and conditions in Danish.
Suppliers wishing to establish an alternative agreement model must complete and submit this form for both Amgros and the Danish Medicines Council: Request for alternative agreement model
The form must be submitted at the same time as the supplier sends its request for assessment to the Danish Medicines Council.
The form contains a section in which the supplier can request a dialogue meeting with Amgros. After we receive a request, in cooperation with the supplier, we will agree when in the Danish Medicines Council's assessment process one or more dialogue meetings with Amgros can take place. The aim of the dialogue meeting is to validate the proposed agreement model, so that it can be used in a negotiation.
The form is dynamic. In other words, the form can be changed if required after a dialogue meeting with Amgros or the Danish Medicines Council.
If the agreement involves ATMP (Advanced Therapy Medicinal Products), it is possible to have a meeting before the request for assessment is sent. This is because these products entail a large number of elements which can secure an easier implementation at Danish hospitals, if they are addressed at an early stage.
When Amgros and the supplier negotiate an alternative agreement model, prices will be negotiated for two scenarios:
- The price based on a “flat discount”.
- The price is based on the alternative agreement model that has been agreed may be relevant.
We negotiate prices for both scenarios in order to support the Danish Medicines Council in their further assessment process as well as possible.
Read more about the negotiation process: New pharmaceuticals and negotiations
Read more about the assessment process by the Danish Medicines Council
If you have any questions about alternative agreement models, please contact us at medicin@amgros.dk.
Amgros has prepared a list different models for alternative agreements. The list has some good ideas for suppliers and will help them prepare for their dialogue with Amgros.
List of models for alternative agreements (only available in Danish).
READ MORE
New pharmaceuticals and negotiations
If a new medicine is to be considered as a standard treatment at Danish public hospitals, the Danish Medicines Council has to assess and recommend it first.
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Pharmaceuticals
Danes are living longer. And we can treat more diseases, because new and better drugs are entering the market all the time. This is good. But it’s expensive. Therefore, it is important that we are at the forefront of market developments.
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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.