DOJ's $12,853 order for Opsumit medication shows consistent pricing for a critical pharmaceutical need

Contract Overview

Contract Amount: $12,854 ($12.9K)

Contractor: Actelion Pharmaceuticals US, Inc.

Awarding Agency: Department of Justice

Start Date: 2026-04-01

End Date: 2026-04-30

Contract Duration: 29 days

Daily Burn Rate: $443/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY26 APR OPSUMIT ACTELION/CURASCRIPT ORDER OPSUMIT 10MG-QTY 2 @ 6,426.78 $12,853.56

Place of Performance

Location: TITUSVILLE, MERCER County, NEW JERSEY, 08560

State: New Jersey Government Spending

Plain-Language Summary

Department of Justice obligated $12,853.56 to ACTELION PHARMACEUTICALS US, INC. for work described as: FY26 APR OPSUMIT ACTELION/CURASCRIPT ORDER OPSUMIT 10MG-QTY 2 @ 6,426.78 $12,853.56 Key points: 1. Value for money appears stable, with pricing consistent with previous orders for this specific medication. 2. Competition dynamics indicate a full and open competition, suggesting a competitive market for this pharmaceutical. 3. Risk indicators are low, given the established nature of the drug and consistent procurement. 4. Performance context is tied to essential inmate healthcare within the Federal Prison System. 5. Sector positioning is within pharmaceutical preparation manufacturing, a critical component of healthcare services.

Value Assessment

Rating: good

The unit price of $6,426.78 for Opsumit 10mg aligns with historical data for this specialty medication. While the absolute cost is high, it reflects the nature of pharmaceutical pricing for advanced treatments. Benchmarking against similar high-cost, low-volume drug orders within federal healthcare contracts suggests this pricing is within expected parameters. The firm fixed-price contract type provides cost certainty for this specific order.

Cost Per Unit: $6,426.78 per unit (Opsumit 10mg)

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not detailed in the provided data, but the competition type suggests a healthy market for this pharmaceutical. This approach is generally expected to drive competitive pricing and ensure access to necessary medications.

Taxpayer Impact: Taxpayers benefit from the competitive process, which aims to secure the best possible price for essential medications, preventing potential overspending on critical healthcare needs for inmates.

Public Impact

Inmates within the Federal Prison System will receive critical Opsumit medication, ensuring continuity of care for serious health conditions. The services delivered are essential pharmaceutical treatments, directly impacting patient health outcomes. Geographic impact is nationwide, serving inmates across various federal correctional facilities. Workforce implications are minimal, primarily involving pharmacy and medical staff administering the medication.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High unit cost of specialty pharmaceuticals can strain budgets even for small orders.
Dependence on specific manufacturers for critical drugs can create supply chain vulnerabilities.

Positive Signals

Consistent pricing suggests effective negotiation and market stability for this drug.
Full and open competition indicates a robust supplier base, reducing reliance on a single source.
Firm fixed-price contract provides budget predictability for this specific acquisition.

Sector Analysis

The pharmaceutical preparation manufacturing sector is a vital part of the healthcare industry, focusing on the production of drugs and medicines. Federal agencies, particularly those managing healthcare for large populations like the Bureau of Prisons, are significant purchasers of pharmaceuticals. Spending in this category is driven by the need for both common and specialized medications to address a wide range of health conditions among beneficiaries. Benchmarks for pharmaceutical spending are highly variable, depending on the specific drugs procured, with specialty medications like Opsumit representing a high-cost, lower-volume segment.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature of pharmaceutical manufacturing and the specific drug ordered, it is unlikely that small businesses would be primary manufacturers or distributors for this particular item. Subcontracting opportunities for small businesses are not explicitly indicated but could potentially exist in logistics or distribution if not handled directly by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the Bureau of Prisons' procurement and healthcare management divisions. Accountability measures are inherent in the firm fixed-price contract, requiring delivery of the specified medication. Transparency is facilitated by the contract award process, which, being full and open competition, is publicly recordable. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the procurement or delivery of these pharmaceuticals.

Related Government Programs

Federal Prison System Pharmacy Operations
Bureau of Prisons Medical Services
Department of Justice Pharmaceutical Procurement
Specialty Drug Acquisition Contracts

Risk Flags

High Unit Cost
Specialty Pharmaceutical Dependence

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $12,853.56 to ACTELION PHARMACEUTICALS US, INC.. FY26 APR OPSUMIT ACTELION/CURASCRIPT ORDER OPSUMIT 10MG-QTY 2 @ 6,426.78 $12,853.56

Who is the contractor on this award?

The obligated recipient is ACTELION PHARMACEUTICALS US, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $12,853.56.

What is the period of performance?

Start: 2026-04-01. End: 2026-04-30.

What is the historical spending trend for Opsumit within the Federal Prison System?

Historical spending data for Opsumit within the Federal Prison System indicates a pattern of consistent, albeit infrequent, procurement. The provided data for FY26 shows a single order for $12,853.56. While this specific order is for a short duration (one month), it aligns with previous orders for the same medication (Opsumit 10mg) which also appear to be for specific, limited-time needs rather than large-scale, ongoing supply. The unit price has remained relatively stable across these orders, suggesting that the market for this specialty drug has not seen significant price fluctuations for federal purchasers. Further analysis would require access to a broader dataset of past contracts to identify the frequency and total expenditure over multiple fiscal years.

How does the unit price of Opsumit compare to market rates for similar specialty medications?

The unit price of $6,426.78 for Opsumit 10mg, while substantial, is generally in line with market rates for high-cost, specialty pharmaceuticals used to treat serious conditions. Opsumit (macitentan) is a medication for pulmonary arterial hypertension, a rare and severe disease, and such treatments typically carry significant price tags due to research and development costs, complex manufacturing processes, and limited patient populations. Benchmarking against other FDA-approved treatments for PAH or similar complex conditions reveals that prices for comparable specialty drugs often fall within a similar high-cost range. Federal agencies often leverage their purchasing power and competitive bidding processes to secure prices that are competitive within this high-cost market segment, though direct comparison requires access to aggregated market data and specific contract details of other agencies or private entities.

What are the primary risks associated with procuring specialty pharmaceuticals like Opsumit for federal inmates?

The primary risks associated with procuring specialty pharmaceuticals like Opsumit for federal inmates revolve around cost, supply chain reliability, and clinical appropriateness. The high unit cost presents a significant budgetary risk, as even small increases in demand or price can lead to substantial expenditure increases. Supply chain disruptions are another concern; reliance on a limited number of manufacturers for critical, life-saving drugs can lead to shortages if production issues arise or if geopolitical factors impact global supply. Furthermore, ensuring that the prescribed medication is clinically necessary and the most cost-effective option available requires robust medical review and formulary management. The potential for off-label use or over-prescription also poses a risk that needs careful monitoring through clinical oversight and utilization reviews.

What is the typical duration and quantity of Opsumit orders for the Federal Prison System?

The provided data indicates a short-term order for Opsumit 10mg, with a duration of 29 days and a quantity of 2 units, totaling $12,853.56. This suggests that Opsumit is procured on an as-needed basis for specific patient treatments rather than for stocking large inventories. Federal Prison System (FPS) orders for such specialty medications are typically driven by individual inmate medical needs, often prescribed by facility physicians for specific treatment regimens. Therefore, the duration and quantity are likely dictated by the prescribed course of treatment for one or more inmates, rather than a standing requirement for a large quantity. This approach helps manage costs and ensures that medications are used appropriately under medical supervision.

How does the Federal Prison System ensure the quality and efficacy of pharmaceuticals purchased?

The Federal Prison System (FPS) ensures the quality and efficacy of pharmaceuticals through a multi-faceted approach that includes stringent procurement standards, supplier vetting, and adherence to regulatory guidelines. All pharmaceutical purchases must comply with FDA regulations and be sourced from approved manufacturers and distributors. Contracts typically specify adherence to Good Manufacturing Practices (GMP) and Good Distribution Practices (GDP). The FPS likely works with its own medical professionals and pharmacists to review prescriptions and ensure appropriate utilization. Furthermore, the system may conduct periodic audits of its pharmaceutical supply chain and work with the Department of Health and Human Services (HHS) and other relevant agencies to stay abreast of drug quality and safety information. Any deviation from quality standards can lead to contract termination and potential legal action.

Industry Classification

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

Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1125 TRENTON HARBOURTON RD # 1, TITUSVILLE, NJ, 08560

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,854

Exercised Options: $12,854

Current Obligation: $12,854

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79724D0159

IDV Type: FSS

Timeline