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Pharmaceutical Strategy for Europe - European Commission
PHARMACEUTICAL STRATEGY FOR EUROPE
    Pharmaceutical
Strategy for Europe
                 2020

                        2020

                              1
Pharmaceutical Strategy for Europe - European Commission
Contents

    04                                  15
    1. Medicines - a strong             3. Supporting a
       ecosystem at an                     competitive and
       important crossroads                innovative European
                                           pharmaceutical
    09                                     industry
                                        3.1. Providing a fertile environment
    2. Delivering for patients:              for Europe’s industry
       fulfilling unmet                 3.2. Enabling innovation and digital
       medical needs and                     transformation
       ensuring accessibility           3.3. A sound and flexible regulatory
       and affordability of                  system
       medicine
    2.1 Prioritising unmet medical
        needs
    2.2 Ensuring patients’ access to
        medicines
    2.3 Ensuring affordability of
        medicines for patients and
        health systems’ financial and
2       fiscal Sustainability
Pharmaceutical Strategy for Europe - European Commission
22                                      30
4. Enhancing resilience:                5. Ensuring a strong EU
   Diversified and                         voice globally
   secure supply chains;
   environmentally
   sustainable                          32
   pharmaceuticals; crisis
   preparedness and                     6. Working together for
   response mechanisms                     success: a cooperative
                                           and layered approach
4.1. Secure the supply of medicines        to implementing the
     across the EU and avoid               strategy
     shortages
4.2. High quality, safe and
     environmentally sustainable
     medicines
4.3. Enhancing Europe’s health crisis
     response mechanisms

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Pharmaceutical Strategy for Europe - European Commission
202O
1. Medicines - a strong

                          PHARMACEUTICAL STRATEGY FOR EUROPE
   ecosystem
   at an important
   crossroads

                                                               4
Pharmaceutical Strategy for Europe - European Commission
PHARMACEUTICAL STRATEGY FOR EUROPE
Good health is central to wellbeing and                  At the same time, though we are
depends on a multitude of factors including              experiencing a period of rapid change and
healthy lifestyles and fair and equitable access         innovation, many patients do not benefit
to healthcare, a central pillar of the European          from that innovation, because medicines
way of life. Healthcare in turn requires safe,           are either unaffordable or unavailable. And
effective and affordable medicines.                      there is greater awareness of the need to
                                                         ensure that our use of pharmaceuticals is
Great progress has been made on human                    sustainable.
health in the European Union in recent years,
with average life expectancy at birth in the             The COVID-19 pandemic has, and continues
EU having increased by 3.3 years since 20021.            to have, a very serious impact on Europe.
New medicines, vaccines and treatments have              Though Europe’s response has demonstrated
helped to tackle some of the leading causes of           strengths, existing vulnerabilities have
disease and life threatening illnesses.                  been thrown into sharp focus, including
                                                         those related to data availability, the
                                                         supply of medicines or the availability of
    M I L E S TON ES OF MAJ OR                           manufacturing capacities to adapt and
    P RO G RE SS I N TR EATME N TS                       support the production of medicines. The
    I N T H E E U I N THE PA ST 20                       conclusion of advance purchase agreements
    Y E A RS :                                           for vaccines is nevertheless an example
                                                         of effective co-operation between public
    Biotech products offer treatment for many            and regulatory authorities, industry and
    chronic conditions such as diabetes, or anaemia      civil society organisations. The anticipated
    in patients with renal failure. A new generation     widespread and equitable availability of safe
    of antiviral medicines for the treatment of          and effective vaccines in record time raises
    chronic hepatitis C has become available since       hope for an exit from the crisis and provides
    2014.                                                inspiration for a renewed, innovative, patient-
                                                         centred and world-leading pharmaceutical
    Several widely used vaccines offer protection
                                                         sector.
    against hepatitis B, papilloma virus or cholera.
                                                         A new EU approach is needed to ensure
    In 2020 the Commission authorised the                we have a strong, fair competitive and
    first Ebola vaccine. Personalised therapies          green industry that delivers for patients,
    dramatically improved the prognosis of               and which draws on the potential of

                                                                                                           2020
    patients with some cancers, an example being         the digital transformation of health and
    trastuzumab that improved cure rate of HER21         care, driven by technological advances in
    positive breast cancer and advanced disease          fields such as artificial intelligence and
    overall survival.                                    computational modelling. We need well-
                                                         functioning international supply chains
    Advanced therapy medicinal products such             and a well performing single market for
    as cell-based and gene therapy products are          pharmaceuticals, through an approach that
                                                         covers the entire lifecycle of pharmaceutical
    paving the way for new promising therapies.
                                                         products, from production to distribution,
    CAR-T cell2 therapies for the treatment of
                                                         consumption and disposal.
    certain blood cancers and a medicine to treat
    transfusion-dependent beta thalassaemia, a           In this context, the Commission proposes
    blood disorder, were authorised more recently.       a new pharmaceutical strategy for
                                                         Europe. It is a patient-centred strategy
                                                         that aims to ensure the quality and safety
    2. Human epidermal growth factor receptor 2 .        of medicines, while boosting the sector’s
    3. Chimeric antigen receptor T cells.                global competitiveness. It is a key pillar of
                                                         the Commission’s vision to build a stronger

1. Eurostat: mortality and life expectancy statistics.

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Pharmaceutical Strategy for Europe - European Commission
PHARMACEUTICAL STRATEGY FOR EUROPE

                                     European Health Union4 2, which President                                        medicines. It will support the competitiveness
                                     von der Leyen set out in her 2020 State of                                       and innovative capacity of the EU’s
                                     the Union speech.                                                                pharmaceutical industry. It will develop the
                                                                                                                      EU open strategic autonomy and ensure
                                     The new pharmaceutical strategy                                                  robust supply chains so that Europe can
                                     acknowledges that the EU is starting                                             provide for its needs, including in times of
                                     from strong foundations. Europe has a                                            crisis. And it will ensure a strong EU voice on
                                     comprehensive pharmaceuticals system,                                            the global stage. The strategy has four work
                                     from the development and authorisation                                           strands which flow from these objectives.
                                     of medicines to their post-authorisation                                         Each strand contains flagship initiatives and
                                     monitoring. The Commission, the European                                         flanking measures to ensure the objectives
                                     Medicines Agency (EMA), the medicines                                            deliver tangible results. Taken together, they
                                     regulatory authorities in the Member                                             will ensure Europe’s pharmaceutical policy
                                     States and the European Economic Area                                            evolves in line with the green and digital
                                     work together in the European medicines                                          transitions, demographic change and remains
                                     regulatory network to ensure that patients                                       relevant given the realities of today and the
                                     have access to high-quality, effective and                                       ambitions of tomorrow, as part of a stronger
                                     safe medicines.                                                                  Health Union.

                                     EU Member State health systems making                                            The strategy will also help to deliver other
                                     use of these medicines are a crucial part of                                     Union objectives. By boosting innovation to
                                     Europe’s high levels of social protection and                                    address unmet needs, including vaccination
                                     cohesion and build on the common values of                                       against treatable infections that cause
                                     universal access to good quality care, equity                                    cancer, as well as medicines for paediatric
                                     and solidarity.                                                                  and rare cancers, it directly contributes to
                                                                                                                      ‘Europe’s Beating Cancer Plan’. Together,
                                     There is a strong and competitive                                                the Pharmaceutical Strategy and the Cancer
                                     pharmaceutical industry in the EU. Together                                      Plan will ensure that patients across Europe
                                     with other public and private actors, it                                         can access high-quality treatment and new
                                     serves public health and acts as a driver of                                     therapies when they need them and ensure
                                     job creation, trade and science. Medicine                                        the availability and affordability of essential
                                     producers made the biggest contribution to                                       medicines for cancer patients across the EU.
                                     research investment in 2019, with over €37                                       The strategy’s actions to address access to
                                     billion. The sector provides 800 000 direct                                      medicines will also help to meeting EU-level
  2020

                                     jobs and a €109.4 billion trade surplus 3. The                                   commitments under the UN’s sustainable
                                     EU is the second largest market in the world                                     development goals.
                                     for pharmaceuticals, with many stakeholders
                                     involved, from start-ups to large companies,                                     The strategy 5 is also complementary to the
                                     from producers of patented medicines to                                          European Green Deal 6 and more particular
                                     generics and biosimilars, from wholesalers                                       the Zero Pollution ambition for a toxic-free
                                     and distributors to parallel traders, from                                       environment, notably through the impact
                                     medical device to software developers.                                           of pharmaceutical substances on the
                                     Emerging biopharmaceutical companies                                             environment. The pharmaceutical strategy
                                     account for over 70% of the research                                             paves a way for the industry to contribute
                                     pipeline 4, contributing to a vibrant sector.                                    to EU’s climate neutrality, with a focus on
                                                                                                                      reducing greenhouse emissions along the
                                     The Pharmaceutical Strategy for Europe                                           value chain. It also contributes to the action
                                     builds on these foundations. It will foster                                      plan to implement the European Pillar of
                                     patient access to innovative and affordable

                                     2. European Health Union package: COM(2020) 724, COM(2020) 725, COM(2020) 726, COM (2020) 727.
                                     3. Eurostat, international trade in goods by type of good.
                                     4. IQVIA Institute for Human Data Science (2019), ‘The global use of medicine in 2019 and outlook to 2023’.
                                     5. The implementation of the Strategy will be compatible with the resources available in the 2021-2027 Multiannual Financial Framework and will be aligned with
                                          the relevant programmes and policies.
                                     6. COM(2019) 640.
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PHARMACEUTICAL STRATEGY FOR EUROPE
Social Rights 7, the strategic frameworks on
achieving a Union of Equality 8, the upcoming
Green Paper on Ageing, the strategy on
Shaping Europe’s digital future 9, the
European strategy for data 10, the work on the
creation of a European health data space,
the European One Health Action Plan against
antimicrobial resistance 11 and the new
industrial strategy for Europe 12.

Finally, the strategy is of key relevance for
non-EU countries as well, in particular in the
Western Balkans and the EU’s neighbourhood,
as candidate countries, potential candidates
and DCFTA 13 countries have an obligation to
align to the EU acquis of the pharmaceutical
legislation.

                                                                                                                                                                2020

7. https://ec.europa.eu/social/main.jsp?catId=1226&langId=en
8. See the Gender Equality Strategy (COM(2020) 152), the Anti-racism action plan COM(2020) 565), the EU Roma strategic framework for equality, inclusion
      and participation (COM(2020) 620) and the LGBTIQ+ equality strategy and the forthcoming Strategy for the Rights of Persons with Disabilities the Action
      Plan on Integration and Inclusion 2020-2027.
9.    European Commission (2020), Shaping Europe’s digital future (ISBN 978-92-76-16363-3).
10.   COM(2020) 66.
11.   https://ec.europa.eu/health/sites/health/files/antimicrobial_resistance/docs/amr_2017_action-plan.pdf
12.   COM(2020) 102.
13.   Deep and Comprehensive Free Trade Areas (DCFTA) are established between the European Union, and Georgia, Moldova and Ukraine, respectively.
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Pharmaceutical Strategy for Europe - European Commission
2020

                                     2. Delivering for patients:
PHARMACEUTICAL STRATEGY FOR EUROPE

                                        fulfilling unmet
                                        medical needs and
                                        ensuring accessibility
                                        and affordability of
                                        medicines
Pharmaceutical Strategy for Europe - European Commission
PHARMACEUTICAL STRATEGY FOR EUROPE
2.1. Prioritising unmet medical                                                      threatens our ability to perform routine
     needs                                                                           surgery. As underlined in the EU One Health
                                                                                     Action Plan on AMR 15, it is a multifactorial
Investment in research and development                                               problem of global concern, with serious
(R&D) for innovative medicines and                                                   health and economic ramifications. An
treatments is essential for making progress                                          important challenge is the excessive and
in preventing and treating diseases. Access                                          inappropriate use of antimicrobials in
to safe, high quality and effective medicines                                        animal and human healthcare, leading to
is a key element of social well-being,                                               the development of resistance, causing an
including for persons from disadvantaged,                                            estimated 33 000 human deaths in the EU/
vulnerable groups, such as people with                                               EEA every year 16. While measures to reduce
disabilities, people with a minority ethnic or                                       excessive and inappropriate use, described
racial background and older people. There is                                         elsewhere, must be pursued, they can have
a growing consensus that policies need to                                            the unintended effect of reducing investment
be rethought so as to stimulate innovation                                           in new antibiotics. Current incentive models
in particular in areas of unmet needs, and                                           do not provide a sustainable solution; new
for pharmaceutical innovation to be more                                             business approaches are required, including
patient-centred, health system oriented                                              new incentives to develop antimicrobials as
and take account of multi-disciplinary                                               well as new pricing systems.
requirements, such as in long-term care
settings.
                                                                                         Flagship initiatives related to
Currently, investment does not necessarily                                               antimicrobial resistance
focus on the greatest unmet needs, due
to the absence of commercial interest                                                    ▶ Pilot innovative approaches to EU
or limitations of the science. Treatments                                                  R&D and public procurement for
for important diseases, for example,                                                       antimicrobials and their alternatives
neurodegenerative diseases and paediatric                                                  aiming to provide pull incentives for
cancers are still lacking. In addition, there are                                          novel antimicrobials – target date
over 7 000 known rare diseases, including                                                  2021.
rare cancers, of which 95% still have no
treatment option 14. Other shortcomings                                                  ▶ Promote investment and coordinate
concern the lack of development of new                                                     research, development, manufacturing,
antimicrobials, treatments or vaccines for                                                 deployment and use for novel

                                                                                                                                                                        2020
emerging health threats (including those                                                   antibiotics as part of the new EU
similar to the present pandemic, such as                                                   Health Emergency Response Authority,
the severe acute respiratory syndrome                                                      prior to the start of the authority’s
coronavirus 2 (SARS-CoV-2) or Middle East                                                  operations preparatory action on AMR
respiratory syndrome (MERS)) and the lack                                                  – 2021.
of treatments for specific population groups
such as pregnant and breastfeeding women
and older people.

Development of novel antimicrobials or
alternatives is a prime example of unmet
medical need, given the lack of therapeutic
options to address antimicrobial
resistance (AMR). AMR decreases our
capability to treat infectious diseases, and

14. Joint evaluation of Regulation (EC) No 1901/2006 of the European Parliament and of the Council of 12 December 2006 on medicinal products for paediatric use
    and Regulation (EC) No 141/2000 of the European Parliament and of the Council of 16 December 1999 on orphan medicinal products SWD(2020) 163.

15. https://ec.europa.eu/health/sites/health/files/antimicrobial_resistance/docs/amr_2017_action-plan.pdf
16. Cassini et al., (2019) ‘Attributable deaths and disability-adjusted life-years caused by infections with antibiotic-resistant bacteria in the EU and the European
    Economic Area in 2015: a population-level modelling analysis’, in Lancet Infect Dis. Vol.19, issue 1, pp. 55-56.
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Pharmaceutical Strategy for Europe - European Commission
PHARMACEUTICAL STRATEGY FOR EUROPE

                                                                                                                   cooperation in scientific advice and
                                        ▶ Consider in the review of the                                            convergence on key concepts, such as ‘unmet
                                          pharmaceutical legislation 1 to                                          medical need’, will facilitate the design
                                          introduce measures to restrict and                                       of clinical trials, generation of evidence
                                          optimise the use of antimicrobial                                        and assessment, ensuring that innovation
                                          medicines. Explore new types                                             matches the needs of patients and of the
                                          of incentives for innovative                                             national health systems. The outcomes of
                                          antimicrobials – 2022.                                                   these discussions could also guide funding
                                                                                                                   into specific areas, such as basic research in
                                        Other action                                                               new therapeutic areas.

                                        ▶ Propose non-legislative measures                                         To complement existing cross-country
                                          and optimise the use of existing                                         collaborative approaches in public
                                          regulatory tools to combat                                               procurement, joint pricing and reimbursement
                                          antimicrobial resistance, including                                      negotiations, new ways of information
                                          harmonisation of product information,                                    sharing, such as horizon scanning, should be
                                          draft evidence-based guidance on                                         considered. The proposed Health Technology
                                          existing and new diagnostics; promote                                    Assessment Regulation 17 will, when adopted,
                                          the prudent use of antibiotics                                           promote evidence-based investment
                                          and communication to healthcare                                          decisions in innovative health technologies
                                          professionals and patients – 2021.                                       with added clinical value for patients.

                                        1.   References to the ‘pharmaceutical legislation’ are to Directive
                                             2001/83/EC of the European Parliament and of the Council of 6
                                             November 2001 on the Community code relating to medicinal
                                             products for human use (OJ L 311, 28.11.2001, p. 67) and
                                             Regulation (EC) No 726/2004 of the European Parliament and
                                             of the Council of 31 March 2004 laying down Union procedures
                                             for the authorisation and supervision of medicinal products for
                                             human use and establishing a European Medicines Agency (OJ L
                                             136, 30.4.2004, p. 1).

                                     Our reply to the challenges, raised by
  2020

                                     persisting unmet medical needs, should
                                     be multi-facetted. Research priorities
                                     should be aligned to the needs of
                                     patients and health systems. Enabling
                                     collaboration between scientific disciplines
                                     by involving regulators, academia, healthcare
                                     professionals, patients’ organisations and                                    A process of reflection has begun on how to
                                     healthcare deliverers and payers at early                                     tailor the system of incentives provided
                                     stages of R&D, as pioneered by innovative                                     by the EU pharmaceuticals framework
                                     partnerships for health research and                                          better in order to stimulate innovation
                                     innovation, can support this ambition.                                        in areas of unmet medical needs (e.g.
                                                                                                                   neurodegenerative and rare diseases and
                                     We need to break silos so that various                                        paediatric cancers). Wide stakeholder
                                     public authorities responsible for                                            engagement and multidisciplinary input
                                     authorisation, health technology assessment,                                  will be sought. The findings of the study
                                     healthcare provision, health insurance                                        on pharmaceutical incentives 18 and the
                                     and financing, work together. Increased                                       evaluation of the legislation on medicines for

                                     17. Proposal for a Regulation of the European Parliament and of the Council on health technology assessment and amending Directive 2011/24/EU (COM(2018)
                                         51).
                                     18. Study on the economic impact of supplementary protection certificates, pharmaceutical incentives and rewards in Europe: final report (2018).
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PHARMACEUTICAL STRATEGY FOR EUROPE
children and rare diseases 19 will inform any   market a medicine in all EU countries; they
future review, in line with the principles of   may decide not to market their medicines
better regulation.                              in, or withdraw them from, one or more
                                                countries. This can be due to various factors,
                                                such as national pricing and reimbursement
   Flagship initiatives on unmet needs          policies, size of the population, the
                                                organisation of health systems and national
   ▶ Propose to revise the legislation          administrative procedures resulting in smaller
     on medicines for children and rare         and less wealthy markets in particular facing
     diseases to improve the therapeutic        these problems. Experience in the area of
     landscape and address unmet needs          medicines for children and rare diseases
     (e.g. in paediatric cancer) through        illustrates the problem. The availability of
     more tailored incentives – 2022.           such medicines has increased since the
                                                adoption of the specific regulations, but
   ▶ Facilitate collaboration on unmet          access varies considerably across Member
     needs and evidence generation in           States.
     joint meetings of existing committees/
     networks of regulators, health
     technology assessment (HTA) bodies
     and payers, involving key actors in the
     development, authorisation and access
     to medicines for a lifecycle approach
     and improved availability and
     affordability. Work with the European
     Parliament and the Council towards
     the adoption of the Regulation on
     health technology assessment – 2021.

   Other actions

   ▶ Incorporate the European Medicines
     Agency (EMA) priority medicines
     scheme (PRIME) in the regulatory
     framework to provide enhanced

                                                                                                 2020
     support so as to accelerate product
     development and authorisation in
     areas of unmet needs – 2022.
                                                Lack of transparency of research costs or
   ▶ Enable parallel scientific advice on
                                                return on investment can influence decisions
     clinical study design for medicines by
                                                that impact affordability and ultimately
     HTA bodies and the EMA, as provided
                                                access for patients. Drawing on this and
     for by the proposed HTA Regulation –
                                                wider experience, the Commission will review
     2021.
                                                the system of incentives. This may include
                                                greater ‘conditionality’ of incentives to
                                                support broader access for patients and ways
                                                to increase competition. The Commission
2.2. Ensuring patients’ access to               will also launch a pilot project to understand
     medicines                                  better the root causes of deferred market
                                                launches, including as regards cancer, to
Innovative and promising therapies do not       inform the evaluation of the pharmaceutical
always reach the patient, so patients in the    legislation.
EU still have different levels of access to
medicines. Companies are not obliged to

19. SWD(2020) 163.
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PHARMACEUTICAL STRATEGY FOR EUROPE

                                     Generic and biosimilar medicines provide                                              assessing the role of ‘winner-takes it all’
                                     a large number of patients with accessible                                            procedures and improving related aspects
                                     and affordable treatments. They also allow                                            (such as price conditionality, timely delivery,
                                     health systems potential savings in costs                                             ‘green production’ and security and continuity
                                     through their positive effect on pricing                                              of supply) including via the Big Buyers
                                     competition. The Commission will consider                                             initiative launched under the SME Strategy.
                                     targeted policies that support greater generic
                                     and biosimilar competition, based on the                                              This would allow to address through the
                                     sound functioning of the single market,                                               use of public purchasing instruments some
                                     appropriate market protection mechanisms,                                             important key policy objectives. National
                                     the removal of barriers that delay their                                              authorities will be able to share their
                                     timely entry to market and increased uptake                                           experience and develop common approaches
                                     by health systems. This may include further                                           based on best practices.
                                     clarifying the provisions for the conduct of
                                     trials on patented products to support generic                                        In addition, health systems and private
                                     and biosimilar marketing authorisation                                                companies can cooperate by using the new
                                     applications (the so-called ‘Bolar’ provision).                                       ‘innovation partnership’ tender procedure that
                                                                                                                           allow public buyers to establish a partnership
                                     The aforementioned policies will be                                                   for the development, manufacturing and
                                     accompanied by enforcement of the EU                                                  subsequent purchase of medicines with
                                     competition rules. The Commission’s                                                   limited demand.
                                     Report on competition enforcement in the
                                     pharmaceutical sector 20 has shown that                                               Finally, the Commission will support regional
                                     originator companies sometimes implement                                              initiatives of joint negotiation or joint
                                     strategies to hinder the entry or expansion                                           tendering, as these can also contribute to
                                     of the more affordable medicines of their                                             improving access to medicines 21.
                                     generic and biosimilar competitors and that
                                     such strategies may require competition                                                   Flagship initiatives on access to
                                     law scrutiny. The Commission will also                                                    medicines
                                     continue to carefully review mergers between
                                     pharmaceutical companies to avoid distortion                                              ▶ Propose to revise the system of
                                     of competition.                                                                             incentives and obligations in the
                                                                                                                                 pharmaceutical legislation taking
                                     New health technologies should demonstrate                                                  into account the relationship with
  2020

                                     their clinical added-value and cost-                                                        intellectual property rights, to
                                     effectiveness compared to what is already                                                   support innovation, access and the
                                     available. Health technology assessment                                                     affordability of medicines across the
                                     is a tool to support this analysis and inform                                               EU – 2022.
                                     national pricing and reimbursement decisions.
                                     Currently, such assessment is highly                                                      ▶ Review the pharmaceutical legislation
                                     fragmented across the EU. The proposed                                                      to address market competition
                                     Health Technology Assessment Regulation                                                     considerations and thus improve
                                     will enable cooperation on clinical evidence                                                access to generic and biosimilar
                                     requirements and clinical trial design. It can                                              medicines, including interchangeability
                                     therefore support Member States’ timely and                                                 and the ‘Bolar’ exemption – 2022.
                                     evidence-based decision-making on patient
                                     access to new medicines.

                                     Actions in the area of public procurement
                                     can foster competition and improve access.
                                     Public buyers should design smart and
                                     innovative procurement procedures, e.g. by

                                     20. COM(2019) 17.
                                     21. An example of such an initiative is the Beneluxa initiative, see https://beneluxa.org/collaboration.
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PHARMACEUTICAL STRATEGY FOR EUROPE
                                                                             reimbursement decisions, also considering
   Other actions                                                             possible knock-on effects for innovation.

   ▶ Initiate a pilot together with the                                      Expenditure on medicines in hospital
     EMA and Member States, with the                                         settings is incompletely reported at EU level
     engagement of future marketing                                          and it is growing rapidly. Pharmaceutical
     authorisation holders, to understand                                    budgets account for 20-30% of hospital
     the root causes of deferred market                                      expenditures and are growing faster than
     launches – 2021.                                                        retail spending 22. This is to be expected given
                                                                             budget increases for specialised medicines
   ▶ Encourage buyers from the health                                        administered in hospitals. The Commission
     sector to cooperate in view of                                          will assess the effectiveness of current
     implementing innovative procurement                                     financial protection mechanisms, working to
     approaches for the purchases of                                         optimise these to safeguard the affordability
     medicine or medical devices, in the                                     of medicines for individual patients and
     framework of the Big Buyers initiative                                  health systems. Improved knowledge on the
     – 2021.                                                                 efficiency and accessibility of medicinal
                                                                             care in Member States will inform country-
                                                                             specific knowledge on health systems (e.g.
2.3. Ensuring affordability of                                               in the European Semester and the ‘state of
     medicines for patients and                                              health in the EU’ cycle) and possible reforms
     health systems’ financial and                                           in the Member States. Minimising waste
                                                                             and optimising the value of spending
     fiscal sustainability                                                   on medicines are also critical to achieving
The affordability of medicines has                                           efficient and sustainable health systems.
implications for both public and household                                   A mix of policy levers can support this
finances. It poses a growing challenge for                                   goal, including: ensuring value for money
the majority of Member States. The business                                  through health technology assessment;
model has moved from selling blockbusters                                    exploiting potential savings from generics
to marketing ‘niche-busters’. Often, new                                     and biosimilars; encouraging responsible
products are priced even higher, with growing                                prescribing; and improving patient adherence.
uncertainty as to their real-life effectiveness
and related overall costs. This puts the
budgetary sustainability of health systems at

                                                                                                                                2020
risk, and reduces the possibilities for patients
to have access to these medicines.

There is a lack of transparency (in particular
in R&D costs) and consensus on costing
principles. Better understanding and greater
clarity are fundamental as a basis for policy
debates on the pricing of niche medicines
and ‘fair return’ on research contributions.
Changing business models (e.g. high value
acquisitions of promising pipeline products)
and novel payment approaches, such as
risk-sharing arrangements and deferred
payment schemes, may have long-term
implications, and thus affect affordability of
new medicines. The Commission will foster
transparency of price information to help
Member States take better pricing and

22. European Commission, State of health in the EU: companion report 2019 (ISBN 978-92-76-10194-9).
                                                                                                                                13
PHARMACEUTICAL STRATEGY FOR EUROPE

                                     Decisions on the pricing and
                                     reimbursement of medicines are the              Flagship initiatives on affordability
                                     purview of Member States. The Commission
                                     will step up co-operation with and among        ▶ Propose to revise the pharmaceutical
                                     Member States on the affordability and            legislation addressing aspects that
                                     cost-effectiveness of medicines and               impede the competitive functioning
                                     will launch a group to steer cooperation          of the markets and to take account
                                     between national pricing and reimbursement        of market effects impacting on
                                     authorities and healthcare payers. It will        affordability – 2022.
                                     support mutual learning through information
                                     and best-practice exchange, including on        ▶ Develop cooperation in a group of
                                     public procurement and the coverage of            competent authorities, based on
                                     pharmaceutical costs by social protection         mutual learning and best-practice
                                     systems, price-increase criteria and rational     exchange on pricing, payment and
                                     prescribing.                                      procurement policies, to improve the
                                                                                       affordability and cost-effectiveness
                                     Certain conditions such as newly launched         of medicines and health system’s
                                     niche products for a small number of patients     sustainability, including on cancer
                                     or the absence of automatic substitution          treatment – 2021-2024.
                                     rules for biologicals, can create market
                                     barriers. This means that competing generics,   Other actions
                                     biosimilars and ‘older’ products may find
                                     it hard to enter or stay in the market. This    ▶ Engage with Members States
                                     lack of competition thus inhibits price           in implementing non-legislative
                                     savings once innovative products lose their       measures to improve transparency,
                                     market exclusivities. Rules that do not           such as guidelines on principles and
                                     directly regulate prices or reimbursement         costing methods for establishing the
                                     levels may nevertheless have a bearing on         R&D costs of medicines – 2021-2024.
                                     the affordability and cost-effectiveness of
                                     medicines through indirect effects on the       ▶ Continue the assessment through the
                                     contestability of markets or the economic         European semester of the adequacy
                                     viability of products in more mature markets.     and sustainability of national health
                                     The Commission will take this into account in     systems and issue country specific
                                     the review of the pharmaceutical legislation,     recommendations as relevant to
  2020

                                     to see how sound competition can best be          ensure they are accessible and
                                     fostered, leading to downward effect on           efficient.
                                     prices of medicines. It will also continue to
                                     work, including through the exchange of best
                                     practices, on the uptake of biosimilars, in
                                     order to stimulate competition.

14
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                         PHARMACEUTICAL STRATEGY FOR EUROPE
3. Supporting a
   competitive and
   innovative European
   pharmaceutical
   industry
PHARMACEUTICAL STRATEGY FOR EUROPE

                                     3.1. Providing a fertile                                                         incentives to reward and protect innovation
                                          environment for Europe’s                                                    and create the right conditions for companies
                                          industry                                                                    of all sizes in the EU to be competitive.

                                     A competitive and resource-efficient EU                                          Intellectual property rights offer
                                     pharmaceutical industry is of strategic                                          protection for innovative products and
                                     interest for public health, economic growth,                                     processes, but in particular for patents and
                                     jobs, trade and science. The EU aims to                                          supplementary protection certificates, there
                                     support industry to be competitive and                                           are differences in their application in Member
                                     resilient so that, in turn, it can better                                        States.
                                     respond to patients’ needs. The sector is
                                     changing rapidly. Established businesses are                                     This leads to duplications and inefficiencies
                                     increasingly outsourcing functions and are                                       thus hampering the competitiveness of
                                     focusing investment on a limited number of                                       industry. The Commission’s intellectual
                                     therapeutic areas, while disinvesting from                                       property action plan 24, includes measures
                                     others. New players, especially technology                                       to simplify and streamline the EU
                                     companies, have entered the market. The                                          pharmaceutical intellectual property system,
                                     coming together of these separate industry                                       notably as regards supplementary protection
                                     segments will transform current business                                         certificates.
                                     models and markets.
                                                                                                                      Secure and efficient access to health data is
                                                                                                                      key to fully exploiting the huge potential of
                                                                                                                      new technologies and digitalisation. Industry
                                                                                                                      and regulators require access to data through
                                                                                                                      a robust EU-wide data infrastructure to
                                                                                                                      support innovation. An interlinked system
                                                                                                                      that gives access to comparable and
                                                                                                                      interoperable health data from across the
                                                                                                                      EU would be a real multiplier in terms of
                                                                                                                      research, regulation and evidence generation.
                                                                                                                      The Commission will propose a European
                                                                                                                      health data space and establish interoperable
                                                                                                                      data access infrastructure, which will improve
                                                                                                                      exchange, federated access and cross-border
  2020

                                                                                                                      analysis of health data in the EU. This will
                                                                                                                      support better healthcare delivery and health
                                                                                                                      research, policymaking and regulation, while
                                                                                                                      protecting individuals’ fundamental rights,
                                                                                                                      notably their rights to privacy and data
                                                                                                                      protection 25.

                                     The new industrial strategy for Europe 23                                        It is essential to continue creating quality
                                     provides key actions supporting industry                                         employment opportunities in the EU
                                     in the EU. Drawing on that framework, the                                        throughout the pharmaceutical value-chain.
                                     pharmaceutical strategy will create a stable                                     To that end, a competitive pharmaceuticals
                                     and flexible regulatory environment                                              industry requires access to a skilled and
                                     that offers legal certainty for investment                                       specialised workforce. NextGenerationEU
                                     and accommodates technological trends.                                           provides unprecedented funding opportunities
                                     This includes providing balanced and fair                                        to support the availability of a skilled
                                                                                                                      workforce as well as its adaptability and

                                     23. 26 Cf. fn. 10.
                                     24. COM(2020) 760.
                                     25. In full compliance with the General Data Protection Regulation - Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016
                                         on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC
                                         (General Data Protection Regulation), OJ L 119, 4.5.2016, p. 1.
16
PHARMACEUTICAL STRATEGY FOR EUROPE
the Skills Agenda for Europe 26 sets the way
to make it happen. Specifically, it should                                Flagship initiatives on
help ensure that all key players in the                                   competitiveness
pharmaceutical sector pool their resources
and invest in upskilling and reskilling of                                ▶ Optimise the supplementary
all employees throughout the value chain,                                   protection certificates system,
including through commitments that need                                     to make it more transparent
to materialise under the Pact for Skills 27,                                and efficient as foreseen in the
launched on 10 November 2020. Contributing                                  Intellectual Property Action Plan –
to the increase in STEM 28 specialists the skills                           2022.
agenda will aim to boost the number of (male
and female) STEM graduates and teachers                                   ▶ Legislative proposal on a European
by making these studies and careers more                                    Health Data Space, enabling
attractive. Researchers are at the forefront of                             better healthcare, health research,
science and innovation and require a specific                               innovation and evidence-based
set of skills too. More will be done to upskill                             decisions – 2021.
scientists, in line with the skills agenda, and
to foster their mobility across Europe.                                   ▶ Establish by 2025 interoperable data
                                                                            access infrastructure for the European
Diverse sources of funding are an essential                                 Health Data Space in order to
tool to support innovation. A key element of                                facilitate secure cross-border analysis
support to the Strategy will be the new and                                 of health data; tested in 2021 with
ambitious standalone EU4Health programme.                                   a pilot project involving EMA and
In addition, Horizon Europe, Cohesion Policy,                               national authorities – 2021 – 2025.
the European Defence Fund, public-private
and public-public investment partnerships                                 ▶ Support public-private and public-
such as the Innovative Health Initiative 29, and                            public partnerships, financially and
national schemes are important enablers for                                 technically for example through
R&D, including for small and medium-sized                                   the Innovative Health Initiative,
enterprises (SMEs) and academia. Some of                                    with particular attention to SMEs,
these partnerships may help early uptake of                                 academia, not-for profit organisations,
innovation in health systems. Commission                                    and through the health care systems
initiatives such as the SME strategy for a                                  transformation partnerships – 2021.
sustainable and digital Europe 30, Startup

                                                                                                                      2020
Europe 31, the European Innovation Council                                Other action
and the European Institute of Innovation
and technology will help provide the                                      ▶ Prioritise skills investment to support
right environment for SMEs and start-ups                                    the availability of a skilled workforce
active in the health sector to grow and                                     and its adaptability through the
attract venture capital. Likewise, there                                    NextGenerationEU, and within the new
are opportunities to invest in international                                Recovery and Resilience Facility and
partnerships in the area of health through                                  through commitments under the pact
international cooperation instruments such                                  for skills – 2022.
as the EU external investment plan. At
the same time increased transparency in
the cost of research and development of
pharmaceuticals is needed.

26.   COM(2020) 274.
27.   The Pact for Skills: mobilising all partners to invest in skills.
28.   Science, technology, engineering and mathematics.
29.   European Partnership for Innovative Health (Initiative).
30.   COM(2020) 103.
31.   https://ec.europa.eu/digital-single-market/en/startup-europe.
                                                                                                                      17
PHARMACEUTICAL STRATEGY FOR EUROPE

                                                                                                                         the management of diseases and the use
                                                                                                                         of treatments. The COVID-19 pandemic
                                                                                                                         has shown that innovative approaches
                                                                                                                         to the development, approval and post-
                                                                                                                         authorisation monitoring of vaccines and
                                                                                                                         repurposing of medicines are needed.
                                                                                                                         Platforms to monitor the safety and
                                                                                                                         effectiveness of vaccines post-authorisation
                                                                                                                         will be developed in addition to regular
                                                                                                                         pharmacovigilance. COVID19 has also
                                                                                                                         underlined the importance of collaboration
                                                                                                                         between different stakeholders and secure,
                                                                                                                         open access to different kind of health data,
                                                                                                                         such as databases of molecules held by
                                                                                                                         companies, using data sharing agreements.
                                                                                                                         This requires open platforms and greater
                                                                                                                         collaboration to identify datasets that can be
                                                                                                                         made available for reuse 33.

                                                                                                                         Digital transformation is affecting the
                                                                                                                         discovery, development, manufacture,
                                                                                                                         evidence generation, assessment, supply
                                                                                                                         and use of medicines. Medicines, medical
                                                                                                                         technologies and digital health are becoming
                                     3.2. Enabling innovation and                                                        increasingly integral to overarching
                                          digital transformation                                                         therapeutic options. These include systems
                                                                                                                         based on artificial intelligence for prevention,
                                     Patients in the EU expect that they can                                             diagnosis, better treatment, therapeutic
                                     benefit from state-of-the art healthcare.                                           monitoring and data for personalised
                                     Scientific and technological advances are                                           medicines and other healthcare applications.
                                     crucial to improve patients’ health, and
                                     support a more efficient, and cost effective,                                       Personalised medicine is an integrated
                                     way of discovering and using medicines.                                             package of healthcare solutions comprising
                                     These advances can translate not only                                               elements of medicines and medical devices
  2020

                                     into entirely new medicines, but also into                                          that are structured to meet an individual
                                     alternative uses for existing ones.                                                 patient’s needs. In the future, patients may
                                                                                                                         still be prescribed a tablet but that tablet
                                     Advanced therapy medicinal products and                                             may be combined with a new technology to
                                     some medicines for rare diseases are                                                determine the right usage, the right schedule
                                     challenging concepts, both in terms of                                              and the right dosage according to their
                                     science and manufacturing. An increasing                                            personal situation. This can also support
                                     number of gene and cell therapies under                                             treatments in multi-disciplinary settings like
                                     development may offer curative treatments                                           long-term care. Digital therapeutics can use
                                     and would require a new business model to                                           app-based platforms to help patients manage
                                     address the shift in cost from chronic to one-                                      chronic diseases such as diabetes, depression
                                     time treatment. ‘Bedside’ manufacture 32of                                          and heart conditions, and reduce medication.
                                     more individualised medicines could be a
                                     future trend.                                                                       Initiatives such as the ‘1+ million
                                                                                                                         genome’ 34 are exploring ways to access
                                     Vaccines, early detection and the                                                   genetic data with the potential to
                                     improvement of well-being can affect                                                improve disease prevention, also via an

                                     32. This refers to a shift from the production of personalised medicines from being exclusively in the factory towards a fine-tuning at the patient’s bedside.
                                     33. In line with the EU data strategy, notably for data reuse and business to government data sharing.
                                     34. Towards access to at least 1 million sequenced genomes in the EU by 2022;
                                     https://ec.europa.eu/digital-single-market/en/european-1-million-genomes-initiative.
18
PHARMACEUTICAL STRATEGY FOR EUROPE
enhanced understanding of the impacts                                           into account the experience acquired from
of environmental determinants such as                                           clinical trials for COVID-19 vaccines and
climate change and pollution, allow for                                         treatments. This includes representative
more personalised treatments and provide                                        participation of population groups, for
sufficient scale for new clinically impactful                                   example gender and age groups, that
research including on different cancer types.                                   are likely to use the medicinal product
                                                                                investigated in the clinical trials to ensure
High performance computing and                                                  appropriate safety and efficacy. Pragmatic
artificial intelligence can help accelerate                                     trials, where the treatment is prescribed and
the identification of potential active                                          used as in normal daily practice, can improve
substances for repurposing and reduce the                                       patient compliance and treatment tolerance
high failure rates. Supercomputing is used in                                   by identifying optimal posology and use
the COVID-19 pandemic for example through                                       with other treatments. Commercial interest
the Commission project Excalate4COV. Due                                        is often weaker for these trials, so they are
care should be taken to avoid any gender,                                       mainly organised by academia, where the
race or other bias in the data produced by                                      price of trial medication and insufficient
artificial intelligence. Technological advances                                 regulatory knowledge can be bottle-necks.
can also support the ‘3 Rs’ principles (replace,
reduce, refine) for the ethical use of animals                                  The Commission supports initiatives to
in medicine testing.                                                            improve academic researchers and not-for-
                                                                                profit stakeholders’ regulatory knowledge
The main source of evidence for the                                             via scientific and regulatory advice so
authorisation of innovative medicines should                                    that the evidence they generate can be
remain robust clinical trials with suitable                                     seamlessly used to repurpose off-patent
comparators reflecting the standard of                                          medicines for new therapeutic uses. Industry
care in the EU. The full implementation of                                      engagement and partnership in this process
the Clinical Trials Regulation 35 will put                                      will be promoted.
in place a harmonised, highly coordinated,
robust and agile system for the assessment                                      The new models of product development
and oversight of clinical trials in the EU. It                                  and care delivery mean that regulators are
will improve transparency of information,                                       seeing the limits of the legislation and the
independently of the outcome of the trials,                                     potential needs for regulatory adaptability.
to allow public scrutiny and will address new                                   The rapid developments in products
developments such as adaptive and complex                                       combining medicines and medical devices

                                                                                                                                                              2020
trials, and the use of in-silico techniques                                     are reflected in new legislation 36, but some
and virtual approaches. Experience with EU                                      challenges remain. These include clarifying
funded R&I projects with adaptive trials                                        roles and responsibilities, streamlining
shows that research can initiate changes that                                   requirements and procedures, and building
can reduce costs and decrease development                                       up the necessary regulatory expertise and
times.                                                                          collaboration between sectors. Access to
                                                                                testing facilities to test devices involving
The Commission will work to ensure that                                         artificial intelligence is important to ensure
the new framework supports innovative                                           the quality of these devices.
trial designs. Moreover, in coordination
with the European regulators, patient                                           The Commission will propose to revise the
groups and stakeholders, it will support                                        pharmaceutical legislation to consider
more patient-oriented design, planning and                                      how to make best use of this transformation.
conduct of clinical trials through harmonised                                   This includes new methods of evidence
international guidance documents and taking                                     generation and assessment, such as

35. Regulation (EU) No 536/2014 of the European Parliament and of the Council of 16 April 2014 on clinical trials on medicinal products for human use (OJ L
    158, 27.5.2014, p. 1).
36. Regulation (EU) 2017/745 of the European Parliament and of the Council of 5 April 2017 on medical devices, amending Directive 2001/83/EC, Regulation
    (EC) No 178/2002 and Regulation (EC) No 1223/2009 and repealing Council Directives 90/385/EEC and 93/42/EEC, OJ L 117, 5.5.2017, p. 1 and Regulation
    (EU) 2017/746 of the European Parliament and of the Council of 5 April 2017 on in vitro diagnostic medical devices and repealing Directive 98/79/EC and
    Commission Decision 2010/227/EU,OJ L 117, 5.5.2017, p. 176.
                                                                                                                                                              19
PHARMACEUTICAL STRATEGY FOR EUROPE

                                     analysis of big and real world data to support
                                     the development, authorisation and use of          ▶ Launch a pilot project with
                                     medicines. Regulators may require access to          engagement of industry and academia
                                     the raw data at the time of authorisation to         to test a framework for repurposing
                                     fully appreciate these innovative elements           of off-patent medicines and inform
                                     of the treatment. Also incentivising the             possible regulatory action – 2021.
                                     development and validation of relevant
                                     biomarkers would support the effectiveness         ▶ Launch a vaccine platform to monitor
                                     in the intake of some new and expensive              the effectiveness and safety of
                                     medicines, but also generics, contributing to        vaccines, supported by an EU-wide
                                     the sustainability of healthcare systems.            clinical trials network – 2021.

                                                                                        ▶ Strengthen support and training
                                                                                          of academia and not-for-profit
                                       Flagship initiatives on innovation                 organisations in regulatory science
                                                                                          for better translation of research into
                                       ▶ Propose to revise the pharmaceutical             product development – 2022.
                                         legislation, to adapt to cutting-edge
                                         products, scientific developments (e.g.        ▶ Initiative for regulatory pilots in a
                                         genomics or personalised medicine)               ‘sandbox’ environment provided by the
                                         and technological transformation                 EMA and the Commission to test the
                                         (e.g. data analytics and digital tools)          adaptability of the pharmaceuticals
                                         and provide tailored incentives for              framework for new cutting-edge
                                         innovation – 2022.                               product developments – 2022.

                                       ▶ Enhance dialogue among regulatory
                                         and other relevant authorities in            3.3. A sound and flexible
                                         the area of medicines and medical                 regulatory system
                                         devices to increase cooperation on
                                         evidence generation within their             Regulatory efficiency is a prerequisite for
                                         respective fields – 2021.                    a modern pharmaceutical system. The EU
                                                                                      has continuously updated its framework to
                                       ▶ Support collaborative projects               ensure that a comprehensive system covers
                                         bringing together stakeholders to take       the entire lifecycle of medicines. It builds
                                                                                      on a dual system where the Commission
  2020

                                         forward the use of high performance
                                         computing and artificial intelligence in     authorises innovative medicines for the entire
                                         combination with EU health data for          EU on the basis of a positive opinion from
                                         pharmaceutical innovation – 2021-            the EMA and national regulators authorise a
                                         2022.                                        great number of generic and other essential
                                                                                      medicines.
                                       ▶ Establish the secure federated access
                                         to 10 million genomes across borders         The Commission will explore the need to
                                         for research, innovation and clinical        recognise more formally the role of the
                                         applications, including personalised         network of national medicines agencies
                                         medicine – 2025.                             (Heads of Medicines Agencies) and its
                                                                                      operational structure in the regulatory
                                       Other actions                                  system.

                                       ▶ Full implementation of the regulatory        The Commission will evaluate procedures
                                         framework for clinical trials, which         to explore new approaches to assessing
                                         supports innovative trial designs and        scientific evidence for the safety and
                                         a more patient-oriented medicine             efficacy of medicines as part of the review
                                         development – 2021.                          of the legislation and seek to bring EU
                                                                                      regulatory approval times onto par with
                                                                                      those in other parts of the world. It will
                                                                                      consider how infrastructure and adapted
                                                                                      regulatory processes could leverage digital
20
PHARMACEUTICAL STRATEGY FOR EUROPE
technology and artificial intelligence to                                         The regulatory requirements for the
support regulatory decision-making and                                            authorisation of medicines for human use
increase efficiency. The experience of the                                        that contain or consist of genetically
EMA during the COVID-19 pandemic (e.g.                                            modified organisms (GMOs) should be fit
in the rolling review of incoming scientific                                      for purpose when it comes to addressing the
evidence to speed up assessment) will                                             specificities of medicines and the conduct
inform future action. The Commission aims                                         of clinical trials with those products in
to revisit existing regulatory tools, such                                        the EU (which is currently hindered by the
as priority review and scientific advice to                                       fragmentation of national requirements).
support companies, especially SMEs, in the                                        Solutions will be explored during the
development of innovative products for                                            evaluation of the pharmaceutical legislation.
unmet medical needs.                                                              In general, consideration should be given to
                                                                                  mechanisms for the continuous and timely
A study 37 on the authorisation and monitoring                                    adaptation of its technical requirements in
of medicines for human use will inform the                                        light of emerging science and technologies
evaluation of the regulatory framework to                                         with a view to enhance effectiveness to
simplify and streamline procedures and                                            protect human health whilst minimising
reduce costs. The management of variations                                        harmful impacts on the environment.
of marketing authorisations and the
assessment of quality files relating to active                                    Regulators also need to adapt to new
substances are two examples of areas in                                           scientific and technological developments by
which simplification is required. A process of                                    upscaling necessary expertise and achieving
reflection will be initiated on the functioning                                   operational excellence to deal with novel
of, and synergies between the scientific                                          and more complex therapies. One important
committees and on the role of patients and                                        factor in this respect is the availability of
healthcare professionals.                                                         sufficient funding at all levels. The EMA fees
                                                                                  system is key in funding regulatory activities
Moreover, better use of product                                                   at EU level and ensuring coverage of the
information in electronic format (ePI)                                            relevant costs. The Commission will consider
could facilitate the delivery of information on                                   this in the upcoming revision of the EMA fee
the medicine to healthcare professionals and                                      legislation.
patients in the EU’s multilingual environment
and support wider availability of medicines
across Member States. Any measures should

                                                                                                                                                               2020
take into account the needs of all patients
and healthcare professionals. Measures
should also be considered with the aim to
ensure that medicines are safely handled
by workers, including when administrating
treatments.

The Commission will assess classification
and interplay challenges relating to other
regulatory procedures (such as medical
devices and substances of human origin)
and consider action to increase cooperation
between regulatory sectors and, where
necessary, clarity for stakeholders on
innovative products, while maintaining high
standards of quality, safety and efficacy.

37. Study on the experience acquired as a result of the procedures for authorisation and monitoring of medicinal products for human use – to be published in
    2021.
                                                                                                                                                               21
PHARMACEUTICAL STRATEGY FOR EUROPE

                                     Flagship initiatives on regulatory               ▶ Consider adapting regulatory
                                     efficiency                                         requirements in the pharmaceutical
                                                                                        legislation, applicable to medicines for
                                     ▶ Propose to revise the pharmaceutical             human use that contain or consist of
                                       legislation to provide for simplification,       genetically modified organisms (GMOs)
                                       the streamlining of approval procedures          – 2022.
                                       and flexibility for the timely adaptation
                                       of technical requirements to scientific        ▶ Upgrade the Commission’s Union
                                       and technological developments, in order         Register of centrally authorised products
                                       to address the challenges relating to the        to include a statistical dashboard and
                                       interplay of medicines and devices, and          make data fully available for secondary
                                       to strengthen pro-competitive elements           use as part of the EU open data initiative
                                       – 2022.                                          – 2021.

                                     ▶ Propose to revise the variation                ▶ Develop and implement electronic
                                       framework for medicines, through                 product information (ePI) for all EU
                                       changes in legislation and guidelines,           medicines with involvement of Member
                                       to make the lifecycle management of              States and industry, evaluate and revise
                                       medicines more efficient and adapted to          relevant provisions in the legislation –
                                       digitalisation – 2021-2023.                      2022.

                                     Other actions                                    ▶ Propose to revise legislation to give
                                                                                        regulatory authorities more power to
                                     ▶ Proposal for revised EMA fee legislation         adapt on their own initiative the terms of
                                       – 2021.                                          marketing authorisations on the basis of
                                                                                        scientific evidence – 2022.
                                     ▶ Provide for a single assessment process
                                       across Member States for active                ▶ Simplify and streamline the system of
                                       substances used for different generic            penalties to address non-compliance in a
                                       medicines (active substance master               proportionate and efficient way – 2024.
                                       files) to facilitate their authorisation and
                                       life-cycle management – 2022.
  2020

22
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                             PHARMACEUTICAL STRATEGY FOR EUROPE
4. Enhancing resilience:
   Diversified and
   secure supply chains;
   environmentally
   sustainable
   pharmaceuticals; crisis
   preparedness and
   response mechanisms
PHARMACEUTICAL STRATEGY FOR EUROPE

                                     4.1. Secure the supply of
                                     medicines across the EU and
                                     avoid shortages
                                     The European Council 38 has recognised
                                     that “achieving strategic autonomy while
                                     preserving an open economy as a key
                                     objective of the Union”. Shortages of
                                     medicines have been a serious concern in
                                     the EU for several years and have increased
                                     during the COVID-19 pandemic. Shortages
                                     compromise patient health and severely
                                     burden healthcare systems and healthcare
                                     professionals. They can lead to under-
                                     treatment and increased hospital stays.
                                     Shortages are increasingly frequent for
                                     products that have been on the market
                                     for many years and are widely used 39.
                                     The reasons are complex; they include
                                     marketing strategies, parallel trade, scarce
                                     active pharmaceutical ingredients and raw                                   cooperation between Member States, for
                                     materials, weak public service obligations,                                 example improved procurement approaches
                                     supply quotas or issues linked to pricing and                               and strategies, joint procurement for critical
                                     reimbursement.                                                              medicines and EU-level cooperation on tools
                                                                                                                 and instruments for national policy making
                                     Building up EU’s open strategic autonomy
                                                                                                                 on prices and reimbursement. For products
                                     in the area of medicines requires actions to
                                                                                                                 with small volumes or limited use, new
                                     identify strategic dependencies in health,
                                                                                                                 business contracting and/or payment models
                                     and to propose measures to reduce them,
                                                                                                                 will be crucial.
                                     possibly including by diversifying production
                                     and supply chains, ensuring strategic                                       Pharmaceutical manufacturing and
                                     stockpiling, as well as fostering production                                supply chains are complex, increasingly
                                     and investment in Europe. Minimising                                        globalised and sometimes not sufficiently
                                     the impact of medicines shortages on
  2020

                                                                                                                 diversified. Multiple actors, in different parts
                                     patient care will require both preventative                                 of the world with varying environmental
                                     and mitigating measures to significantly                                    performance of the production processes,
                                     reinforce the obligation of continuous supply.                              may be involved in the various production
                                     This year, the Commission launched a study                                  steps for a single ingredient. Certain
                                     to map the root causes of shortages and                                     technologies necessary for the production
                                     assess the legal framework. The study will                                  of raw materials are no longer available in
                                     inform the evaluation and revision of the                                   the EU. Even before the COVID-19 pandemic
                                     current legislation. Legislative measures                                   there were concerns about the resilience of
                                     could include stronger obligations on                                       pharmaceutical manufacturing chains, both
                                     industry to ensure the supply of medicines,                                 the European Parliament and Member States
                                     earlier notification of shortages and                                       have called on the Commission to address
                                     withdrawals, enhanced transparency of                                       this issue 40. Notably as regards the supply of
                                     stocks across the supply chain, and a                                       raw pharmaceutical materials, intermediates
                                     stronger coordinating role for the EMA in                                   and active pharmaceutical substances, which
                                     monitoring and managing shortages. Such                                     may contribute to risks of shortages of
                                     measures will be complemented by enhanced                                   critical medicines. The pandemic showed that

                                     38. 41 European Council Conclusions of 2 October 2020 (EUCO 13/20).
                                     39. Pharmaceutical Group of European Union (PGEU), Medicine shortages survey: 2019 results.
                                     40. European Parliament resolution of 17 September 2020 on the shortage of medicines — how to address an emerging problem (2020/2071(INI)) and
                                         European Council Conclusions of 2 October 2020 (EUCO 13/20).
24
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