HHS awards $13.8M for Peramivir, a critical antiviral medication, to Biocryst Pharmaceuticals

Contract Overview

Contract Amount: $13,877,674 ($13.9M)

Contractor: Biocryst Pharmaceuticals Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2024-09-30

End Date: 2025-09-29

Contract Duration: 364 days

Daily Burn Rate: $38.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PERAMIVIR (RAPIVAB 200MG/20ML (10MG/ML INJ SOLN))

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27703

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $13.9 million to BIOCRYST PHARMACEUTICALS INC for work described as: PERAMIVIR (RAPIVAB 200MG/20ML (10MG/ML INJ SOLN)) Key points: 1. Contract awarded via full and open competition, suggesting a robust market for this pharmaceutical. 2. The contract duration of 364 days indicates a need for ongoing supply of the antiviral. 3. Biocryst Pharmaceuticals, the sole awardee, has a track record in developing antiviral treatments. 4. The firm fixed-price contract type helps manage cost certainty for the government. 5. Awarded to North Carolina-based Biocryst, potentially supporting regional economic activity. 6. The contract is for a specific pharmaceutical preparation, highlighting specialized healthcare procurement.

Value Assessment

Rating: good

The contract value of $13.88 million for a 364-day supply of Peramivir appears reasonable given the specialized nature of antiviral medications. Benchmarking against similar sole-source or limited-competition procurements for critical pharmaceuticals would provide a more precise value-for-money assessment. However, the firm fixed-price structure offers cost predictability. The award to Biocryst, the developer, suggests a strategic decision to ensure supply of a known effective treatment.

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 were likely solicited and had the opportunity to bid. The presence of a competitive process suggests that the government sought the best value and pricing available in the market for this pharmaceutical. The specific number of bidders is not provided, but the competition type implies a healthy market for Peramivir.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring the government receives competitive offers, leading to better value for public funds.

Public Impact

The primary beneficiaries are patients requiring treatment with Peramivir, an antiviral medication. This contract ensures the availability of a critical pharmaceutical for public health preparedness. The services delivered include the manufacturing and supply of Peramivir injection solution. The geographic impact is national, as the medication will be available for use across the United States. Workforce implications are primarily within the pharmaceutical manufacturing and distribution sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in future contract renewals if competition diminishes.
Reliance on a single supplier for a critical medication could pose supply chain risks.
Limited transparency on the specific performance metrics and quality control measures for the drug supply.

Positive Signals

Awarded through full and open competition, indicating a competitive market and potential for good pricing.
Firm fixed-price contract provides cost certainty and protects against unexpected price increases.
Biocryst Pharmaceuticals is the developer of Peramivir, suggesting expertise and a vested interest in product quality.
Contract duration of nearly a year ensures a stable supply chain for a critical medication.

Sector Analysis

The pharmaceutical manufacturing sector is characterized by high research and development costs, stringent regulatory requirements, and significant market competition. Contracts for specific medications, especially antivirals, are crucial for public health initiatives and emergency preparedness. Spending in this area is often driven by the need to maintain stockpiles of essential drugs. Comparable spending benchmarks would involve analyzing other government contracts for similar antiviral or critical care medications.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the nature of pharmaceutical manufacturing, it is likely that the primary awardee is a large, established company. There is no explicit information regarding subcontracting plans for small businesses within this award, but the specialized nature of drug production may limit opportunities for broad small business involvement.

Oversight & Accountability

Oversight for this contract would typically fall under the Office of Assistant Secretary for Preparedness and Response (ASPR) within HHS. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified pharmaceutical products. Transparency is generally maintained through contract award databases, though specific performance monitoring details may be internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Antiviral Drug Procurement
Public Health Emergency Preparedness
Pharmaceutical Manufacturing Contracts
Strategic National Stockpile Acquisitions

Risk Flags

Potential supply chain disruption risk
Reliance on single manufacturer for critical drug
Price volatility in future procurements

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $13.9 million to BIOCRYST PHARMACEUTICALS INC. PERAMIVIR (RAPIVAB 200MG/20ML (10MG/ML INJ SOLN))

Who is the contractor on this award?

The obligated recipient is BIOCRYST PHARMACEUTICALS INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of Assistant Secretary for Preparedness and Response).

What is the total obligated amount?

The obligated amount is $13.9 million.

What is the period of performance?

Start: 2024-09-30. End: 2025-09-29.

What is the historical spending pattern for Peramivir by the Department of Health and Human Services?

Analyzing historical spending data for Peramivir by HHS is crucial for understanding the government's long-term commitment and investment in this antiviral. While this specific award is for $13.88 million over approximately one year, prior contracts would reveal trends in demand, pricing, and supplier relationships. For instance, examining spending over the past 5-10 years could indicate whether this represents a routine procurement, an increase in demand due to specific public health concerns (like influenza seasons or pandemic preparedness), or a shift in contracting strategy. Understanding these patterns helps in forecasting future needs and budgeting effectively, and it can also highlight any significant price escalations or de-escalations over time, providing context for the current award's value.

How does the per-unit cost of Peramivir in this contract compare to market rates or previous government purchases?

A detailed comparison of the per-unit cost of Peramivir under this $13.88 million contract against market rates and previous government purchases is essential for assessing value for money. Since the total award is for a specific quantity (implied by the injection solution formulation), calculating the cost per vial or per dose allows for direct comparison. If previous government contracts for the same or similar formulations exist, analyzing their pricing can reveal if costs have increased, decreased, or remained stable. Similarly, comparing against prices offered by Biocryst Pharmaceuticals to other entities or against prices of comparable antiviral drugs in the open market provides a benchmark. A higher cost than historical or market rates might warrant further investigation into the reasons, such as increased manufacturing complexity, inflation, or specific supply chain challenges.

What is Biocryst Pharmaceuticals' track record with government contracts, particularly for antiviral medications?

Biocryst Pharmaceuticals' track record with government contracts, especially for antiviral medications, is a key indicator of their reliability and performance. As the developer of Peramivir, their history with this specific drug is particularly relevant. Examining past awards, contract values, performance reviews, and any instances of contract disputes or terminations provides insight into their capabilities. For instance, have they successfully delivered similar quantities of critical medications on time and within budget in the past? Have they been a consistent supplier for government stockpiles or emergency use? A strong track record suggests a lower risk of performance issues, supply disruptions, or quality control problems, thereby reinforcing the value proposition of this current award. Conversely, a history of issues might raise concerns about the long-term viability of the supply.

What are the specific performance expectations and quality control measures associated with this Peramivir supply contract?

The specific performance expectations and quality control measures for this Peramivir supply contract are critical for ensuring the efficacy and safety of the medication provided to the public. While the contract specifies a firm fixed price and delivery timeline, details regarding the required purity, potency, storage conditions, and expiration dating of the Peramivir injection solution are paramount. The government likely relies on adherence to Good Manufacturing Practices (GMP) and potentially specific FDA regulations. Understanding these measures helps assess the risk associated with the supply chain and the quality of the product. Information on how the government will monitor compliance, conduct quality assurance checks, and handle potential deviations or recalls is vital for a comprehensive risk assessment.

How does the procurement of Peramivir fit into the broader strategy of the Office of Assistant Secretary for Preparedness and Response (ASPR) for pandemic or influenza preparedness?

The procurement of Peramivir by ASPR is intrinsically linked to their broader mission of preparing for and responding to public health emergencies, including pandemics and severe influenza outbreaks. Peramivir is a neuraminidase inhibitor, effective against influenza viruses. This contract likely supports the maintenance of the Strategic National Stockpile (SNS) or ensures immediate availability for treatment during an influenza season or a declared public health emergency. Understanding how this specific award aligns with ASPR's threat assessments, stockpiling goals, and distribution plans provides context for its strategic importance. It signifies a proactive measure to ensure the availability of essential medical countermeasures, thereby enhancing national health security and resilience against infectious diseases.

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

Solicitation ID: 75A50324Q00006

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4505 EMPEROR BLVD STE 200, DURHAM, NC, 27703

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $69,388,369

Exercised Options: $13,877,674

Current Obligation: $13,877,674

Actual Outlays: $13,877,674

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79721D0166

IDV Type: FSS

Timeline