AMRIT Pharmacy Procurement

AMRIT (Affordable Medicines and Reliable Implants for Treatment) is a central government initiative under HLL Lifecare (a MoHFW PSU) that procures and retails essential oncology drugs, cardiac stents, orthopaedic implants, and diabetes medicines at 50-90% below market retail price through retail outlets installed in major government hospitals.

What is AMRIT Pharmacy Procurement?

AMRIT was launched in 2015 to reduce the out-of-pocket burden of patients at major central government hospitals. HLL Lifecare, a PSU under MoHFW, manages AMRIT outlets and runs the procurement for medicines and implants sold through them.

From a procurement perspective, AMRIT involves:

• HLL Lifecare issuing tenders for bulk supply of oncology, cardiac, and diabetes drugs at manufacturer-level prices
• Tender for stents, orthopaedic implants, and prosthetics at government-negotiated rates
• Rate contract model: fixed prices for 12-24 months, with facilities ordering as needed
• Technical qualification: CDSCO registration, valid manufacturing licences, IP/pharmacopoeia compliance for drugs; device registration for implants

AMRIT procurement rates are typically 50-80% below MRP because:

• Procurement is direct from manufacturer without intermediary margins
• Volume is aggregated across 200+ AMRIT outlets
• Payment is timely (PSU settlement within 30 days typically)

AMRIT outlets are located in AIIMS, major state medical colleges, and central government hospitals. The programme has expanded to include diagnostic services at AMRIT diagnostic centres.

Why AMRIT Pharmacy Procurement matters for Indian government suppliers

AMRIT contracts offer pharmaceutical and medical device companies direct access to a large patient population at major government hospitals. While prices are lower than commercial trade, the guaranteed volume, timely payment, and brand visibility at premium government hospital locations make AMRIT participation commercially attractive, especially for generic drug manufacturers and domestic implant producers.

Example

A domestic stent manufacturer applies to supply drug-eluting cardiac stents to AMRIT outlets. HLL Lifecare issues a rate contract tender specifying CDSCO Class D device registration, ISO 13485 certification, and clinical data from minimum 500 implantations. The manufacturer wins the rate contract at Rs 8,500 per stent (vs Rs 45,000-70,000 MRP for international brands), supplying 15,000 stents annually to AMRIT outlets across 12 states.

Frequently Asked Questions

What medicines are available through AMRIT?

AMRIT focuses on high-cost disease areas: oncology (chemotherapy drugs, supportive care), cardiac (anti-hypertensives, anti-coagulants, stents, valves), orthopaedics (implants, prosthetics), and diabetes (insulin, metformin, glipizide). The AMRIT formulary is reviewed and updated by HLL Lifecare periodically.

How do pharmaceutical companies supply to AMRIT?

Pharmaceutical and medical device companies respond to HLL Lifecare's tender/rate contract notices published on CPPP and HLL Lifecare's website. Contracts are awarded to qualified L1 bidders. Supply is to AMRIT warehouses or directly to outlet locations depending on the contract structure.

Is AMRIT different from Jan Aushadhi?

Yes. Jan Aushadhi outlets are community pharmacy stores run by Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP), focussed on generic medicines for common conditions at rural and semi-urban locations. AMRIT outlets are hospital-based and focus on high-cost speciality drugs for cancer, cardiac, and orthopaedic conditions at tertiary government hospitals.

Can states replicate the AMRIT model?

Yes. Several states have created similar high-cost medicine programmes under their state health missions, procuring speciality drugs at negotiated prices for beneficiaries of state health schemes. These state-level programmes represent additional procurement opportunities for pharmaceutical and device companies.