Framework agreement

Framework agreements are arrangements between one or more buyers (authorities) and one or more suppliers (pharmaceutical industry, pharmacies) that provide the terms governing contracts to be established for a certain period of time, in particular with regard to price and, where necessary, the quantity envisaged. It may have a binding character (legal consequences).
Framework agreements are often negotiated by the representative organisation of pharmaceutical industry and authorities and may result in pay-back mechanisms, discounts etc.