



EU Pharma strategy provides unique moment to establish a regulatory pathway for Value Added Medicines and level the playing field with US
The absence of a cohesive and unique regulatory framework for value added medicines in Europe acts to the detriment of patients and health care professionals across the continent. Gaps in the pharmaceutical legislation must be addressed to support off-patent innovation.
The outbreak of COVID-19 in Europe highlighted the urgency to support value added medicines. Off-patent, repurposed medicines are among the few treatment options for critically ill COVID patients. Successful repurposing provided access to affordable medicines such as dexamethasone to reduce fatalities in hospitalised COVID-19 patients. Value added innovation also optimised healthcare resources by offering formulations of medicines that enabled patients to receive appropriate care at home, while not being exposed to the risk of contracting COVID-19, thereby relieving much needed hospital resources.
Value added innovation brings meaningful improvements to off-patent medicines for patients by applying modern science and technology to well-established molecules. It is affordable and sustainable. Yet the absence of a designated pathway for these medicines in Europe discourages their development. This is in stark contrast to the US system, which has a clear framework to support patient centred innovation. Our policy framework must catch up and support continuous innovation on off-patent medicines.
Medicines for Europe has launched a series of concrete recommendations to support value added medicines. The report (available here) sets three requirements for value added innovation in Europe. These are:
The Chair of the Value Added Medicines Sector Group at Medicines for Europe, Arun Narayan (Viatris) commented “Europe drastically lags behind the United States in terms of supporting value added medicines. The US has recognised the importance of off-patent innovation for the most challenging chronic diseases like cancer, respiratory conditions and antimicrobial resistance. Rather than stifling this innovation, the US has facilitated it with a dedicated regulatory pathway. Today, we are launching our recommendations to put Europe at the centre of continuous innovation on off-patent medicines by creating a fit for purpose legal framework under the EU Pharma Strategy.”
Medicines for Europe President Christoph Stoller (Teva) added “Never has the importance of value added medicines been more evident than during COVID-19. Off-patent medicines were investigated and scientifically validated for new indications so that they could be used on critically ill COVID-19 patients and continue to be one of the very few lifelines for hospitals. Additionally, the significant impact of the pandemic on non-COVID-19 patients cannot be underestimated and has demonstrated the need for a shift toward home care delivery, which can be supported by the combination of known molecules with digital technologies. Europe must develop a framework that supports this kind of innovation in the off-patent sector for all patients and disease areas.”
In response to the European Commission Trade Communication published on 18 February 2021. During Covid-19, Medicines for Europe was strongly engaged to ensure continued access to medicines for patients while protectionism, hoarding measures and panic policies undermined these efforts. The emergency has highlighted the need for closer international health collaboration and for governments to work together with industry to balance emergency health measures with free flow of medicine supply chains. Since the pharmaceutical sector is highly regulated, stronger international regulatory cooperation, especially related to generic and biosimilar medicines which represent the overwhelming volume of medicine supplies, would reduce unnecessary duplications for industry and regulatory agencies, and improve equitable access to medicines.
The EU should focus its trade agenda on pharmaceuticals on the following measures:
Medicines for Europe is ready with realistic policy proposals to secure manufacturing resilience and supply for patients across Europe, says President Christoph Stoller
Berlin, 07 October 2020, speaking at ‘For a Healthy Europe’, a ProGenerika-German EU Presidency event
The upcoming EU pharmaceutical strategy provides a one of a kind opportunity to strengthen Europe’s role as a global player for medicines manufacturing. The COVID-19 crisis has shone a light on a long-standing issue: the pharmaceutical supply chain is increasingly consolidated, and Europe is gradually losing its pharmaceutical productions, opening up areas of vulnerability which leads in severe cases to shortages. This cannot continue, and solutions must be found.
The first step must be to assess the reality of medicines manufacturing in Europe. Across Europe, our industry has manufacturing sites, working day and night, to produce the essential ingredients and finished products needed to make the medicines in our cabinets, pharmacies and in our hospitals.
In fact, the off-patent medicines sector can count on 190,000 people at over 400 manufacturing and 126 R&D sites in Europe, developing and manufacturing the medicines that patients across Europe needs. Additionally, Europe still accounts for around 35% of API worldwide production (25% India, 33% China, 12%US)[1]. Nevertheless, the sector has been consolidated over time and various aspects of the supply chain have become globalised as a result of sustainability challenges faced by our industry.
But medicines are not like any other commodity. Disruptions in global supply have a much more profound impact on people’s lives than other goods. In that sense, we broadly support the EU’s vision for securing supply and strengthening medicines manufacturing in Europe through its upcoming pharmaceutical strategy. What concerns Medicines for Europe members is that we take this unique moment to put in place the right solutions that will make a tangible and systemic difference for the long term.
As the association representing the medicines manufacturers who provide for almost 70% of dispensed medicines in Europe, Medicines for Europe has defined where action is needed to help achieve this goal:
If one positive has come from the COVID-19 crisis, it has been the power of collaboration. When faced with an urgent crisis, industry and Governments worked together to manage the risk and reduce the impact. This should not be confined to crises only. Building manufacturing capacity in Europe is a long term goal, and one which cannot be accomplished by any one actor alone. At Medicines for Europe, we are ready to contribute to an EU pharma strategy that works, that makes sense, and that delivers for patients and health systems in Europe. It’s now or never!
– Christoph Stoller
President, Medicines for Europe (Teva)
[1] Data sources: Charles River Associates and GDUFA