On Tuesday, March 11, the European Commission unveiled a plan aimed at reducing the European Union’s reliance on countries like China and India for essential drugs such as antibiotics. Officials say that given cost pressures, this will be a challenging task.
According to Reuters, the initiative, known as the Critical Medicines Act, aims to address vulnerabilities in the manufacturing supply chain of about 270 drugs considered crucial to the health and medical safety of the EU, as identified in the latest list released by the European Commission in December of last year.
A recent letter from health ministers of 11 EU countries revealed that over 80% of the active ingredients in antibiotics used in Europe come from Asia, mostly from China.
The new law encourages EU member states to move away from the traditional practice of awarding generic drug tenders based solely on price, which, according to European generic drug manufacturers, has led to price competition putting them at a disadvantage compared to suppliers from China and India.
However, the final decision on tenders still lies with the health departments of the 27 EU member countries, rather than the European Commission.
These health departments must balance budget pressures when procuring drugs.
A European health department official, speaking anonymously to Reuters, expressed concerns about this dilemma, stating, “For instance, if I could save money on insulin, I might do that because every euro I save could be used to provide treatment for cancer patients, neurodegenerative diseases, and others.”
The Commission’s law encourages procurement agencies of EU member states to consider “factors other than price” when tendering for drugs, “unless there are market analysis and medical services financing considerations as legitimate reasons.”
However, the official expressed doubts about whether this law can bring about fundamental changes in the European manufacturing supply chain.