Madrid Hospital Locks In a 35 Million Euro Supply Deal for a Specialist Cancer Radiotherapy

Standfirst

Hospital Universitario de Getafe has awarded a direct, sole-source contract worth 34.99 million euros to Novartis Farmacéutica for supply of Lutathera, a specialist radiopharmaceutical used to treat certain neuroendocrine tumours. The award was made without competition because Novartis holds exclusive rights to the medicine.

Introduction

Some medicines have no substitute. When a drug is protected by patent or other exclusive rights and no equivalent treatment exists, a hospital's only option for securing supply is to negotiate directly with the single company that makes it.

Hospital Universitario de Getafe, part of Madrid's regional health service, has just done exactly this for Lutathera, a targeted radiotherapy treatment manufactured exclusively by Novartis.

Why This Contract Matters

Lutathera is a radioligand therapy, a treatment that combines a radioactive isotope with a molecule designed to target specific cancer cells, used for certain neuroendocrine tumours that do not respond well to conventional treatment. Securing a reliable, multi year supply of this kind of specialist medicine directly affects the hospital's ability to offer this treatment option to eligible patients without interruption.

Contract Timeline

The contract was concluded on 10 August 2026. The notice recording this award was dispatched on 18 August 2026 and published in the Official Journal of the European Union on 19 August 2026, under OJ S issue 159/2026. The supply agreement covers an initial 24 month period, with the possibility of up to 12 renewals.

Contract Overview

Hospital Universitario de Getafe ran this as a negotiated procedure without prior call for competition under Directive 2014/24/EU, classified under CPV code 33690000, Various medicinal products. The justification for this direct award is explicit: the contract can be provided only by a particular economic operator because of exclusive rights, including intellectual property rights, meaning no alternative supplier can legally provide this specific medicine.

The confirmed value of the contract is 34,992,000.00 EUR excluding VAT, matching exactly between the notice's overall results figure and the individually recorded winning tender.

Key Contract Details

Project Scope

The contract covers the ongoing supply of Lutathera, marketed by Novartis, for use at Hospital Universitario de Getafe. As a specialist radiopharmaceutical, this medicine requires particular handling, storage and administration protocols typical of radioactive treatments and its exclusive supply status means the hospital has no alternative sourcing route for this specific therapy.

About the Contracting Authority

Hospital Universitario de Getafe

Hospital Universitario de Getafe is a body governed by public law, controlled by a regional authority, with health as its classified activity. Based in Getafe, within the Madrid region, it is part of the Comunidad de Madrid's public health service and this contract secures its ongoing access to a specialist oncology treatment for eligible patients.

About the Organisations Involved

Novartis Farmacéutica S.A.

Novartis Farmacéutica S.A., based in Barcelona and classified as a large enterprise, is the Spanish affiliate of the global Novartis pharmaceutical group and holds exclusive rights to Lutathera in Spain. It won this contract as the sole eligible supplier, with no subcontracting declared, meaning it will supply the medicine directly to the hospital.

Tribunal Administrativo de Contratación Pública de la Comunidad de Madrid

The Tribunal Administrativo de Contratación Pública de la Comunidad de Madrid, based in Madrid, is named as the review organisation for this procurement, the regional body responsible for hearing public procurement disputes within the Madrid region.

Procurement Analysis

Because this was a negotiated procedure without competition, awarded on the explicit basis of exclusive intellectual property rights, there was no competing bid to evaluate. This is a standard and legally established route for procuring patented medicines with no generic or therapeutic equivalent and one tender, from Novartis itself, was recorded.

The award criteria description points to price as the sole formal criterion, though with the underlying rate and terms determined through negotiation given the single-source nature of the procurement, rather than competitive bidding.

Additional Procurement Facts

The contract is not financed with EU funds and is not covered by the Government Procurement Agreement. No framework agreement or dynamic purchasing system applies. The contract includes an options clause described only by reference to the tender specifications, without further detail disclosed in the notice.

Market and Industry Perspective

Exclusive, patent-protected radiopharmaceuticals like Lutathera represent a growing category of high cost specialist hospital pharmaceutical spending across the EU, reflecting advances in targeted cancer therapy that, while clinically valuable, come without competitive pricing pressure due to their protected, single source status.

Economic Significance

At close to 35 million euros over an initial 24 month term, with the possibility of extensive renewal, this is a substantial and recurring commitment of hospital pharmaceutical budget to a single specialist cancer treatment, reflecting the high unit cost typical of advanced targeted radiotherapy medicines.

Future Procurement Opportunities

With up to 12 renewals available, this specific supply relationship with Novartis could extend well beyond the initial 24 month term without requiring a new procurement process, provided the exclusivity justification continues to apply for the duration.

Opportunities for Suppliers

Because Lutathera's exclusive rights currently rest with Novartis, no direct competitive opportunity exists for other suppliers on this specific medicine. Broader opportunity in this therapeutic space would depend on the emergence of alternative, clinically equivalent radiopharmaceutical treatments from other manufacturers.

What Businesses Should Watch

Pharmaceutical companies developing radioligand or targeted oncology therapies should watch for how Spanish regional health systems structure procurement once any competing or generic alternatives to treatments like Lutathera become available, since that would shift this category of contract away from sole-source direct award.

SpainTenders.com Procurement Intelligence

This award illustrates the routine but financially significant mechanics behind hospital procurement of patent protected specialist medicines, where the absence of competition is not a procedural failure but a legally justified reflection of genuine exclusivity in the underlying intellectual property.

Its strategic importance lies in supply continuity for patients rather than competitive dynamics. With up to 12 possible renewals attached to the initial term, this contract structure gives Hospital Universitario de Getafe a durable route to continued access without repeated procurement cycles, provided Novartis's exclusive rights to Lutathera remain in force.

Supplier Takeaways

• This was a direct, sole-source award justified explicitly by exclusive intellectual property rights held by Novartis
• No competing bid was possible or received, consistent with the patent protected status of this specific medicine
• The contract structure allows up to 12 renewals beyond the initial 24 month term
• No subcontracting was declared, meaning Novartis will supply the medicine directly

Key Takeaways

• Hospital Universitario de Getafe has awarded a 34,992,000.00 EUR sole-source contract to Novartis Farmacéutica for the medicine Lutathera
• The award was justified by Novartis's exclusive intellectual property rights to this radiopharmaceutical
• The contract runs for an initial 24 months with up to 12 possible renewals
• The contract is not EU funded and is not covered by the Government Procurement Agreement

Conclusion

This contract secures continued access to a specialist cancer radiotherapy for patients under Hospital Universitario de Getafe's care, awarded through the legally established route for medicines with no competitive alternative. For Novartis, it confirms its position as the sole supplier of Lutathera to this Madrid hospital for years to come.

Source: Tenders Electronic Daily (TED), Contract Award Notice 574867-2026, Official Journal of the European Union, OJ S issue 159/2026, published on 19/08/2026.