Regulatory news
Commission proposes Critical Medicines Act to bolster the supply of critical medicines in the EU

On Tuesday, 11th March, the European Commission (EC) published the Critical Medicines Act, focusing on strengthening the security of supply of critical medicinal products (CM) within the EU (scope limited to those in the Union list of Critical Medicines).
The Act also aims to address the availability and accessibility of medicinal products of common interest (MPCI), a new term for those medicinal products, other than a critical medicinal product, for which in three or more Member States the functioning of the market does not sufficiently ensure the availability and accessibility to cover patient need.
Overview of proposed ActWhile we are currently conducting a detailed assessment of the proposed changes, below is a brief/not so brief overview.
The Act, which is a Regulation, sets out a framework to:
- facilitate investments for Strategic Projects supporting the manufacturing capacity of CM, their APIs and other key inputs in the EU
- lower the risk of supply disruptions and strengthen availability by incentivizing supply chain diversification and resilience in the public procurement procedures of CM and MPCI
- leverage the aggregated demand of participating Member States through collaborative procurement,
- support the diversification of supply chains by facilitating the conclusion of strategic partnerships
On Strategic Projects investment:
- Defined as a project located in the EU and related to creating or increasing manufacturing capacity and fulfilling at least one of the following criteria for CM or their APIs: 1) creates or increases manufacturing capacity; 2) modernises an existing manufacturing site to ensure greater sustainability or efficiency; 3) creates or increases manufacturing capacity for key inputs; 4) contributes to the roll-out of a technology that plays a key role in enabling their manufacrting
- Could receive support for administrative tasks (i.e. reporting obligations), regulatory and scientific support for approval of inspections of new/extended/modernised manufacturing sites, as well as environmental assessments and authorisation
- May be prioritised by Member States for financial support when addressing vulnerability in the supply chains of CM; however, any company that has benefitted from the financial support shall prioritize supply to the EU market, and the Member State that provided the financial support may request the necessary supplies of CM (including APIs or key inputs) to the EU market to avoid shortages
- May be supported by EU funding when addressing vulnerability in the supply chains of CM, as long as support is in line with the objectives in the regulations of those programmes (i.e. EU4Health, Horizon Europe, Digital Europe Programme)
On public procurement procedures of critical medicinal products (CM) and medicinal products of common interest (MPCI):
- For CM, Member States shall award criteria other than price-only, such as criteria that promote supply resilience in the EU (i.e. stockholding obligations, number of diversified suppliers, monitoring of supply chains, their transparency to the contracting authority and contract performance clauses on timely delivery)
- For CM with vulnerable supply chains due to a high level of dependency on a single or limited number of third countries, contracting authorities shall, when justified, apply procurement requirements favouring suppliers manufacturing a significant proportion of that CM in the EU. These requirements shall be applied in compliance with the EU international commitments
- For MPCI, where justified by market analysis and public health considerations, contracting authorities may apply procurement requirements favouring suppliers manufacturing a significant proportion in the EU. These requirements shall be applied in compliance with the EU international commitments
- Contractual authorities may exceptionally decide not to apply the above where justified by market analysis or considerations related to the financing of health services
- Contractual authorities can use additional qualitative requirements (i.e. environmental sustainability and social rights)
- Each Member State shall establish a national programme supporting security of supply of CM, including public procurement
- The programmes shall promote the consistent use of award criteria as well as multi-winner approaches, where beneficial in light of the market analysis
- The programmes may also include measures for pricing and reimbursement supporting security of supply of CM that are not purchased through public procurement
On national "contingency stocks" requirements:
- Measures on security of supply applied in one Member State shall not result in any negative impact in other Member States
- Member States shall ensure that requirements imposed to hold contingency stocks are proportionate and respect the principles of transparency and solidarity
On collaborative procurement:
- European Commission (EC) facilitated Member States' cross-border procurement: upon the request of ≥3 Member States, the EC may act as a facilitator (secretarial and logistical support) for the procurement of MPCI. The EC shall not be responsible, nor held liable, for any breaches of EU or national procurement laws, the procedure or the implementation by the participating contracting authorities
- EC procurement on behalf of or in the name of Member States: upon the request of ≥9 Member States, the EC may procure on their behalf or in their name for the products belonging to the categories indicated below
- Joint procurement: upon the request of ≥9 Member States OR at the EC initiative, the EC and Member States may engage as contracting parties in joint procurement procedures for the products belonging to the categories indicated below
- Product categories for EC procurement on behalf of Member States AND Joint procurement: 1) CM with vulnerable supply chains for which the MSSG has recommended a common procurement initiative, or 2) MPCI for which a joint clinical assessment report has been published or which have undergone a clinical assessment carried out under volunatery cooperation among Member States
- EC procurement and joint procurement shall only be made if they fulfill one of the above criteria and if it will help to improve the security of supply and availability of CM or ensure availability and accessibility of MPCI, as applicable
- EC shall verify whether the procurement could constitute discrimination or restriction to trade or a distortion to competition
- It may be necessary to agree to minimum binding quantities, and the procurement may then be conditioned upon the acceptance of these conditions to the interested Member States
- For the three options of procurement, the EC will inform all Member States about the initiative and set an appropriate deadline for them to declare their interest
On the establishment of a Critical Medicines Coordination Group (CMCG):
- Composed by EC and Member States, and EMA with an observer status, and will work closely with MSSG, EMA, and NCAs
- Decisions made through consensus, where possible
- Tasked with coordinating and implementing the Regulation, and advising the EC to maximize the impact of measures and avoid unintended effects
On international cooperation:
- EC shall explore possibilities of concluding strategic partnerships aiming to diversify sourcing of CM, their APIs and key inputs
- EC shall explore possibilities of building on existing forms of cooperation, when possible, to support security of supply and reinforce efforts to strengthen production of CM in the EU
On obligations of the market actors to provide information:
- MAHs and other economic operators in the supply and distribution chains of CM and MPCI shall upon request by the EC or NCAs provide the requested information necessary for the purpose of this Regulation
- EC and NCAs shall aim to avoid duplication of the information requested and submitted
- EC and NCAs shall assess merits of duly substantiated confidentiality claims made by MAHs requested to provide the information, and shall protect any information that is commercially confidential against unjustified disclosure
Additional relevant information:
- The vulnerability assessment methodology is not mentioned in the document and will probably be left for the MSSG to address it.
- The Act is to be evaluated 5 years after the date of application and every 5 years thereafter (including its impact and to what extent its objectives have been met), NCAs and economic operators shall upon request provide the EC with relevant information for this evaluation.
- Impact assessment: the text highlights that, "given the urgent need to address the policy challenges identified, the proposed Regulation will be proposed without an impact assessment. However, its provisions are based on existing analyses, stakeholder consultations, and lessons learned from past initiatives to ensure a proportionate and evidence–based approach. To further assess its expected impacts, a staff working document will be published within three months of the proposal’s adoption, providing a summary of available evidence on the expected impacts of the proposed Regulation and the analysis underpinning the proposal"
Next steps
- EFPIA and Vaccines Europe have published a press release, available in the following Link
- EFPIA will prepare a deeper analysis of the Regulation in the coming days
- EFPIA's Drug Shortages Workstream will meet on March 18th (online) to discuss the Act content and the next steps in detail
- Members are encouraged to review the proposed text and inform us of any major considerations
The Critical Medicines Act will also be sent to both the European Parliament and the Council, following the legislative process.
Commission proposes Critical Medicines Act to bolster the supply of critical medicines in the EU
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