Questions over $228M difference in malaria drug bids premature

-Ramsaran, New GPC

Health Minister Dr. Bheri Ramsaran has appealed to Guyanese to await the outcome of a bid-evaluation before jumping to conclusions about the huge difference in bids for anti-malarial drugs by two prospective suppliers.

“I would like to point out that at this very early stage, the bids have just been opened and the evaluation of these bids has to be done according to established procedure of the evaluation committee,” Ramsaran was quoted as saying on Friday by the Government Information Agency (GINA), even as supplier New GPC said that its bid was based on the supply of a branded drug that costs more than generic drugs. “I would like also to point out that the discrepancy between the amounts of monies that are indicated in the article may well be explained when this evaluation process would have been completed. The Ministry of Health awaits that report and by extension the Government of Guyana awaits that report.”

When bids for the supply and delivery of anti-malaria drugs for the Ministry of Health were opened last Tuesday, there was a difference of over $228M between the only two bidders. International Pharmaceutical Agency (IPA) bid $32,730,400 for the project, while the New Guyana Pharmaceutical Corporation (New GPC) submitted a bid of $261,568,442.

After the National Procurement and Tender Administration Board (NPTAB) unsealed the bids, Stabroek News had contacted New GPC Chief Executive Officer Dr. Ranjisinghi Ramroop for an explanation about the difference in the New GPC’s bid price. He had first said to call back the following day during working hours as the person responsible was unavailable. After a few minutes, he returned a call and insulted the reporter who had called and levelled a series of outrageous allegations.

Ramsaran told GINA that the price disparity at this stage should be viewed with caution. “It could quite well be that the drugs that IPA is presenting its bid for are different from those that the New GPC is presenting its bid for. We need to evaluate that, we need to review that data, the information out of the bid documents before we jump to conclusions…,” he said. “This is the very early stage of the evaluation process and I am confident that that process will be done in a transparent manner, which will allow us to have in the end the information which is needed to decide which one at least which one of these companies should be awarded the contract,” he added.

Meanwhile, New GPC in a statement on Friday also indicated that it does not feel that it should be questioned on the amount and that that reporter’s level of probing should be condemned. “Questioning the amount of a company’s bid is absurd and should be condemned. Should this sort of behaviour be allowed to continue, it would mean that companies prior to the evaluation of bids by the Tender Board are suddenly called upon by the media and politicians alike to answer questions on bids,” New GPC said.

New GPC added that its bid is a reflection of the fact that the Coartem is a branded drug which costs more than generic drugs. “The bid prepared by NEW GPC was done in collaboration with Ansa McAl and Novartis, the pharmaceutical giant that manufactures Coartem,” it noted.

When the tenders were opened the brand or quantity of drug either company bid for was not stated. As in the case of some contracts, a company may bid for a part or all of a specified contract.

Coartem is a malaria drug made by pharmaceutical giant Novartis.  It was developed in the early 2000s when it was found that existing antimalarials had been rendered ineffective by the emergence of deadly, drug-resistant parasites and effective new medicines were urgently needed especially in countries like Guyana.

Research found on the internet states that other drugs such chloriquine, melflorquine, doxycycline, artemisin derivatives among other drugs can be used to treat malaria but given many countries opt for the Coartem given the relatively limited side effects and potency.

Ramsaran said that over the years the Ministry of Health partnered with organisations such as the Pan-American Health Organisation and “worked out treatment modules and that includes the purchase of expensive medication which are tried and tested.” It is for this reason that Coartem was chosen.