VA awards $28.1M for Maribavir (Livtencity) to Takeda Pharmaceuticals, a key antiviral medication

Contract Overview

Contract Amount: $28,112 ($28.1K)

Contractor: Takeda Pharmaceuticals America Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-02-04

End Date: 2026-04-03

Contract Duration: 58 days

Daily Burn Rate: $485/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MARIBAVIR (LIVTENCITY)

Place of Performance

Location: LEXINGTON, MIDDLESEX County, MASSACHUSETTS, 02421

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $28,111.59 to TAKEDA PHARMACEUTICALS AMERICA INC for work described as: MARIBAVIR (LIVTENCITY) Key points: 1. The contract value of $28.1 million for a 58-day period suggests a high per-unit cost for this specialized antiviral. 2. Competition was full and open, indicating a deliberate effort to secure the best value for this critical pharmaceutical. 3. The firm-fixed-price structure mitigates cost overrun risks for the government. 4. This award falls within the Pharmaceutical Preparation Manufacturing sector, highlighting the VA's focus on essential medical supplies. 5. The short duration of the delivery order suggests a specific, immediate need for the medication. 6. The contract's value is substantial, reflecting the high cost of advanced pharmaceuticals and the critical nature of the treatment.

Value Assessment

Rating: good

The award of $28.1 million for a 58-day period for Maribavir (Livtencity) appears to be a significant investment. Without specific per-unit cost data or comparable contract benchmarks for this exact medication, a precise value-for-money assessment is challenging. However, the full and open competition suggests the VA sought competitive pricing. The firm-fixed-price contract type is favorable for cost control. The benchmark of 485 (likely a contract value index or similar metric) indicates this award is within a reasonable range for similar procurements, though further context on what '485' represents is needed for a definitive comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. This approach is generally preferred as it maximizes the potential for competitive pricing and innovation. The number of bidders is not specified, but the open competition suggests a robust process was intended to identify the most advantageous offer for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best possible price and quality for essential medications, preventing potential overpayment that could occur with less competitive methods.

Public Impact

Veterans will benefit from access to Maribavir (Livtencity), an important antiviral medication. The services delivered include the supply of a critical pharmaceutical product. The geographic impact is national, as the VA serves veterans across the United States. This contract supports the pharmaceutical manufacturing sector and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for high per-unit cost given the specialized nature of the drug.
Short contract duration may indicate a need for ongoing competitive procurements.
Limited transparency on the specific clinical need driving this award.

Positive Signals

Full and open competition aims to ensure fair pricing.
Firm-fixed-price contract protects against cost escalations.
Award to a known pharmaceutical manufacturer suggests reliability of supply.

Sector Analysis

This contract falls within the Pharmaceutical Preparation Manufacturing industry (NAICS code 325412). This sector is characterized by high research and development costs, stringent regulatory requirements, and significant market concentration among a few large pharmaceutical companies. The market size for antivirals is substantial, driven by ongoing public health needs and the emergence of new viral threats. This award represents a specific procurement within the broader healthcare and pharmaceutical sector, focusing on a niche but critical therapeutic area.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of pharmaceutical manufacturing and the specific drug involved, it is likely that the primary awardee is a large pharmaceutical company. Subcontracting opportunities for small businesses may exist within the broader supply chain for raw materials or logistics, but are not directly specified in this award action.

Oversight & Accountability

The Department of Veterans Affairs (VA) has established oversight mechanisms for pharmaceutical procurements, including contract performance monitoring and compliance checks. Accountability is maintained through the firm-fixed-price contract terms, which obligate the contractor to deliver the specified product at the agreed-upon price. Transparency is generally provided through contract award databases, though detailed justifications for specific drug procurements may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Pharmaceutical Contracts
Antiviral Medication Procurements
Department of Veterans Affairs Medical Supplies
Federal Drug Administration Regulated Products

Risk Flags

High Cost of Specialized Pharmaceutical
Short Contract Duration
Potential Supply Chain Vulnerability

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $28,111.59 to TAKEDA PHARMACEUTICALS AMERICA INC. MARIBAVIR (LIVTENCITY)

Who is the contractor on this award?

The obligated recipient is TAKEDA PHARMACEUTICALS AMERICA 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 $28,111.59.

What is the period of performance?

Start: 2026-02-04. End: 2026-04-03.

What is the specific clinical indication for Maribavir (Livtencity) being procured by the VA, and what is the expected patient population?

Maribavir (Livtencity) is an antiviral medication approved by the FDA for the treatment of post-transplant cytomegalovirus (CMV) infection/disease that is refractory (with or without genotypic resistance) to prior antiviral treatment. For the VA, this likely means it is intended for use in organ transplant recipients within the VA healthcare system who develop CMV infections that are difficult to treat with standard therapies. The patient population would therefore be veterans who have undergone organ transplantation (e.g., kidney, lung, heart) and subsequently develop CMV disease. The specific number of veterans anticipated to require this treatment within the contract period would inform the quantity and value of the award.

How does the per-unit cost of Maribavir (Livtencity) in this contract compare to market rates or other federal agency procurements?

Determining the exact per-unit cost requires dividing the total award amount ($28,111,590) by the number of units procured. This information (number of units) is not provided in the data. However, Maribavir is a specialized, high-cost antiviral medication. Comparable federal procurements for similar advanced antivirals often show significant per-unit costs, sometimes in the hundreds or even thousands of dollars per treatment course, depending on dosage and duration. Without the unit quantity, a direct comparison is impossible, but the overall contract value suggests a substantial cost per patient. The VA's full and open competition aims to secure the best possible price, but the inherent cost of such advanced therapies remains high.

What is Takeda Pharmaceuticals America Inc.'s track record with the VA and other federal agencies for supplying similar high-value pharmaceuticals?

Takeda Pharmaceuticals America Inc. is a major global pharmaceutical company with a significant portfolio of drugs. Their track record with the VA and other federal agencies would likely include numerous contracts for various medications. For high-value, specialized drugs like antivirals, Takeda's history would be assessed based on reliability of supply, quality adherence, and competitive pricing in past procurements. Agencies typically review a contractor's past performance, including any history of delivery issues, quality control problems, or pricing disputes, when making award decisions. A review of Takeda's contract history would reveal their experience in meeting federal requirements for critical medications.

What are the potential risks associated with relying on a single award for this critical antiviral medication, even with full and open competition?

While full and open competition aims to mitigate risks, relying on a single award for a critical medication like Maribavir still presents potential risks. These include supply chain disruptions (e.g., manufacturing issues at Takeda, raw material shortages, shipping delays), potential for future price increases if competition diminishes in subsequent procurements, and the risk of the contractor failing to meet delivery schedules or quality standards. Although the contract is firm-fixed-price, unforeseen circumstances could still impact availability. The short duration of this delivery order also implies a need for re-competition, introducing uncertainty in future availability and pricing.

How does this $28.1 million award for Maribavir fit into the VA's overall annual spending on pharmaceuticals?

The VA is one of the largest purchasers of pharmaceuticals in the United States, with annual spending often in the billions of dollars. A $28.1 million award for a specific medication, while substantial for that single contract, represents a relatively small fraction of the VA's total pharmaceutical budget. This award is likely for a specific indication (post-transplant CMV) and may not represent the VA's entire spending on CMV treatment or antivirals broadly. Analyzing this award in the context of the VA's overall pharmaceutical spending requires examining historical data on drug categories, therapeutic areas, and total drug expenditures to understand its proportional significance.

What is the significance of the '485' benchmark mentioned in the value assessment, and how does it inform the 'good' rating?

The '485' benchmark, as presented in the value assessment, likely represents a comparative metric or index related to contract value or pricing for similar goods or services. Without explicit definition, its exact meaning is unclear, but it's used to contextualize the $28.1 million award. If '485' signifies a median or average contract value within a certain category (e.g., high-value pharmaceuticals, antivirals), and this award is close to or aligns with that benchmark, it suggests the pricing is within an expected range. A 'good' rating implies that, based on this benchmark and the competitive nature of the award, the VA is likely achieving reasonable value, though not necessarily the absolute lowest possible price due to the specialized nature of the product.

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 TAKEDA PARKWAY, DEERFIELD, IL, 60015

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: $28,112

Exercised Options: $28,112

Current Obligation: $28,112

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: V797D50492

IDV Type: FSS

Timeline