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2mo ago

EU Unveils Critical Medicines Act to Address Drug Shortages and Supply Chain Vulnerabilities

The new legislation aims to reduce reliance on Asia for essential medicines by overhauling procurement rules and supporting domestic production, but critics question its adequacy.

Medicines are displayed on a shelf in a pharmacy in Augsburg, Germany, January 26, 2023. The Augsburg pharmacy produces its own medicines to combat a surge flu cases, especially amongst children. REUTERS/Lukas Barth

Overview

  • The Critical Medicines Act seeks to address Europe's dependence on China and India for over 80% of generic drug ingredients, including antibiotics, by boosting domestic manufacturing and diversifying supply chains.
  • Key measures include prioritizing security of supply over cost in procurement, joint purchasing agreements, and €88.5 million in funding from the EU's 2021-2027 budget to support strategic projects.
  • The act introduces stockholding obligations and encourages countries to procure from multiple suppliers to ensure stable access to critical medicines, including cancer treatments and antibiotics.
  • Belgium, which spearheaded the call for the act, has criticized the plan for insufficient funding and lack of a unified stockpiling strategy, while others argue it may not significantly reduce vulnerabilities.
  • Supporters, including cancer advocacy groups and pharmacists, praise the act for addressing root causes of shortages and improving access, though concerns remain about environmental standards and implementation timelines.