VA awards $3.5M for Lenalidomide, a critical cancer drug, to Exelan Pharmaceuticals

Contract Overview

Contract Amount: $3,496,483 ($3.5M)

Contractor: Exelan Pharmaceuticals Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-01-15

End Date: 2027-01-14

Contract Duration: 364 days

Daily Burn Rate: $9.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: LENALIDOMIDE FOR FAYETTEVILLE VAMC PATIENT CARE

Place of Performance

Location: BOCA RATON, PALM BEACH County, FLORIDA, 33432

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.5 million to EXELAN PHARMACEUTICALS INC for work described as: LENALIDOMIDE FOR FAYETTEVILLE VAMC PATIENT CARE Key points: 1. Value for money appears reasonable given the critical nature of the pharmaceutical. 2. Competition dynamics indicate a full and open process, suggesting fair market pricing. 3. Risk indicators are low due to the established nature of the drug and supplier. 4. Performance context is tied to patient care at a specific VA facility. 5. Sector positioning is within the pharmaceutical manufacturing and healthcare supply chain.

Value Assessment

Rating: good

The contract value of $3.5 million over one year for Lenalidomide is within expected ranges for high-cost pharmaceuticals. Benchmarking against similar VA or DoD pharmaceutical contracts for this drug would provide a more precise value-for-money assessment. However, given the drug's therapeutic importance and the competitive award, the pricing is likely fair.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of two bids suggests a healthy level of competition for this essential medication, which typically helps drive competitive pricing and ensures the government receives favorable terms.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best possible price for this vital medication, preventing overpayment and ensuring funds are used efficiently.

Public Impact

Patients at the Fayetteville VA Medical Center requiring Lenalidomide for cancer treatment will benefit directly. The service delivered is the provision of a critical pharmaceutical, ensuring continuity of care. Geographic impact is focused on the Fayetteville, North Carolina region served by the VAMC. Workforce implications are minimal, primarily related to pharmacy and medical staff administering the drug.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations if market conditions change significantly during the contract period.
Dependence on a single supplier for a critical medication could pose a risk if supply chain issues arise.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Contract duration of one year provides flexibility for future procurement adjustments.
Fixed-price contract type offers cost certainty for the government.

Sector Analysis

The pharmaceutical manufacturing sector is characterized by high research and development costs, stringent regulatory requirements, and significant market competition. Lenalidomide is a well-established drug used in treating multiple myeloma and other cancers. This contract represents a small but vital segment of the government's overall pharmaceutical spending, ensuring access to essential medicines for veterans.

Small Business Impact

This contract does not appear to have specific small business set-aside provisions. However, the prime contractor, Exelan Pharmaceuticals Inc., may engage small businesses for subcontracting opportunities related to distribution, logistics, or other support services, though this is not explicitly detailed in the award notice.

Oversight & Accountability

Oversight will be managed by the Department of Veterans Affairs, likely through its contracting officers and program managers responsible for pharmaceutical procurement. Accountability measures are inherent in the firm-fixed-price contract terms, requiring delivery of specified quantities. Transparency is facilitated by public contract award databases, though detailed performance metrics are typically internal.

Related Government Programs

VA Pharmaceutical Prime Vendor Program
DoD Tricare Pharmacy Program
National Institutes of Health (NIH) Research Grants

Risk Flags

Supply Chain Vulnerability
Price Volatility of Specialty Pharmaceuticals

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.5 million to EXELAN PHARMACEUTICALS INC. LENALIDOMIDE FOR FAYETTEVILLE VAMC PATIENT CARE

Who is the contractor on this award?

The obligated recipient is EXELAN PHARMACEUTICALS INC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $3.5 million.

What is the period of performance?

Start: 2026-01-15. End: 2027-01-14.

What is the historical spending pattern for Lenalidomide by the Department of Veterans Affairs?

Historical spending data for Lenalidomide by the VA would reveal trends in procurement volume and cost over previous years. Analyzing this would help determine if the current $3.5 million award is consistent with past expenditures or represents a significant increase or decrease. Factors such as changes in patient population, drug pricing, and contract vehicles (e.g., sole-source vs. competitive) would be crucial in this analysis. Without specific historical data, it's difficult to ascertain long-term spending patterns, but the current award suggests a consistent need for this medication within the VA system.

How does the per-unit cost of Lenalidomide in this contract compare to market rates or other federal agencies?

A precise per-unit cost comparison is challenging without knowing the exact quantity of Lenalidomide being procured under this $3.5 million contract. However, Lenalidomide is known to be a high-cost specialty drug. Comparing the negotiated price per unit against publicly available drug pricing databases (e.g., Red Book, First Databank) or contract awards from other federal agencies like the DoD or GSA would be necessary. Given the competitive award, it is likely that Exelan Pharmaceuticals Inc. offered a price that is competitive within the pharmaceutical market for this specific drug, aiming to secure the contract.

What is Exelan Pharmaceuticals Inc.'s track record with the VA or other federal agencies for pharmaceutical supply?

Exelan Pharmaceuticals Inc. has a history of contracting with federal agencies, including the Department of Veterans Affairs. Reviewing their past performance records, such as those available through the Federal Procurement Data System (FPDS) or Contractor Performance Assessment Reporting System (CPARS), would provide insight into their reliability, quality of service, and adherence to contract terms. A positive track record with previous pharmaceutical awards would indicate a lower risk associated with this current contract, suggesting a higher likelihood of successful delivery and patient care continuity.

What are the specific risks associated with the supply chain for Lenalidomide, and how are they mitigated in this contract?

The primary risks associated with the supply chain for Lenalidomide include manufacturing disruptions, raw material shortages, and potential regulatory changes affecting production or distribution. As a critical medication, any interruption could severely impact patient treatment. This contract, awarded through full and open competition, mitigates some risk by potentially having multiple qualified bidders, reducing sole-source dependency. The firm-fixed-price structure also provides cost certainty. However, the VA would likely have contingency plans and monitor the supplier's inventory and production capacity closely to ensure uninterrupted supply.

How does the Fayetteville VAMC's utilization of Lenalidomide compare to other VA facilities of similar size?

To assess the Fayetteville VAMC's utilization of Lenalidomide relative to similar facilities, one would need access to VA internal data on drug formularies, prescription volumes, and patient demographics across different medical centers. Factors such as the prevalence of specific cancers (e.g., multiple myeloma) within the veteran population served by each VAMC, the availability of alternative treatments, and the prescribing practices of oncologists at each facility would influence utilization rates. Without this comparative data, it's difficult to determine if Fayetteville's procurement is typical or an outlier.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Pharmaceutical Preparation Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 370 W CAMINO GARDENS BLVD STE 204, BOCA RATON, FL, 33432

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $3,496,483

Exercised Options: $3,496,483

Current Obligation: $3,496,483

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79720D0227

IDV Type: FSS

Timeline