By Julia Payne and Maggie Fickovitz
BRUSSELS/LONDON (SofTech) – The European Commission intends to decrease the significant dependence of the EU on nations like China and India for antibiotics and commonly used medications with strategies announced on Tuesday. However, officials noted that this will pose a challenging endeavor considering the financial constraints involved.
The Critical Medicines Act aims to address weaknesses in the production supply chain for approximately 270 medications deemed crucial for health and healthcare security within the European Union. This information is based on the most recent list released by the Commission in December.
The proposed legislation encourages EU member states to cease granting contracts for generic drugs exclusively based on cost. According to European manufacturers of generic medications, this approach has triggered a downward spiral where local businesses struggle against competitors from China and India.
Consequently, as stated in a letter released over the weekend by the health ministers of 11 European Union nations, over 80% of the active ingredients in antibiotics utilized across Europe originate from Asia, with China being the primary source.
Nonetheless, the ultimate authority over tenders lies with the health ministries of the 27 EU member countries, rather than the Commission. These ministries face financial constraints when acquiring medications, as noted by an anonymous representative from a European health ministry speaking candidly to SofTechon under conditions of confidentiality.
“If I have the option to save money, say on insulin, I might take that route because each euro saved enables us to support treatments for oncology patients, those with neurodegenerative conditions, and more,” stated the official.
The legislation proposes that the Commission requires contracting authorities within EU member countries—including entities like health ministries—to utilize procurement criteria beyond just pricing when soliciting bids for pharmaceuticals, unless these authorities can substantiate their reliance on cost alone through an evaluation of the market and relevant healthcare service funding issues.
This casts doubt on whether the legislation will trigger significant transformations in Europe’s manufacturing supply chain, according to the official.
Two years ago, the European Union’s executive branch, known as The Commission, initiated efforts to reform its regulations concerning the pharmaceutical sector. This was done with the aim of guaranteeing that every European citizen has access to cutting-edge medical innovations along with affordable generic medications. However, the modifications suggested by them are still pending legislative approval.
(Reported by Julia Payne in Brussels and Maggie Fick in London; Additional reporting by Tiffany Vermeylen; Edited by Gareth Jones)
