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Tendering is a common measure for the procurement of hospital pharmaceuticals, and it has recently been used for out-patient pharmaceuticals (i.e. those consumed in primary care) in the Netherlands and Germany (Kanavos, Seeley and Vandoros, 2009b). A tender is issued and the lowest price bidder wins the tender and thereby the right to supply the whole market. The terms of the tender and whether a single product can supply the entire market or competitors that can supply at the tender price also have this right are laid out by the body issuing the tender.
