Beyond price: The case for value-based procurement in plasma-derived medicinal products
Beyond price: The case for value-based procurement in plasma-derived medicinal products
European procurement rules have encouraged contracting authorities to award medicine contracts on best value for money rather than lowest price since 2014, when the Most Economically Advantageous Tender (MEAT) principle was embedded in the Public Procurement Directive. Yet the use of non-price award criteria remains limited in practice: only 28 per cent of medicinal product tenders in Europe use them.
In a new policy note commissioned by CSL, we examine why this implementation gap matters particularly for plasma-derived medicinal products (PDMPs), which treat rare and chronic conditions, many of which are formally recognised as critical medicines in the EU. PDMPs face structural supply constraints. Plasma relies entirely on human donation and manufacturing takes 7–12 months, making it difficult to increase supply rapidly when demand rises. Price-focused tenders can weaken incentives to invest in production capacity and more resilient supply chains.
The note finds that
The use of non-price criteria in PDMP tenders is limited: about 31 per cent of European immunoglobulin tenders use non-price criteria
Differences between countries are large. For example, price carries 95 per cent of the award weight in Poland and 50 per cent in France
Implementation of non-price criteria influences outcomes
Ineffective implementation can put reliable PDMP supply and future value of these medicines at risk
This note comes as European medicines procurement enters a new phase. The Critical Medicines Act, which mandates resilience criteria, has been adopted, while the revision of the Public Procurement Directive, which is expected to strengthen the use of non-price criteria, is ongoing.
We conclude that mandating resilience and non-price criteria will not be enough on its own. Policymakers should develop practical guidance at the level of product categories, setting out which procurement designs and instruments are best suited to different objectives, and their respective benefits and limitations. As the Critical Medicines Act enters the implementation phase, such guidance can help ensure that its health-security objectives translate into more consistent and effective procurement practices across Europe.
Disclaimer. This policy note was initiated and funded by CSL and developed by Copenhagen Economics. The underlying analyses and views expressed in this note are those of Copenhagen Economics and do not necessarily reflect the opinions of CSL. The funder has no editorial control or influence over the content.
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