High hopes for tackling shortages in Europe: Critical Medicines Alliance kicks off

High hopes for tackling shortages in Europe: Critical Medicines Alliance kicks off

Earlier this week, as part of the Medicines for Europe delegation, I had the chance to attend the launch of the #CriticalMedicinesAlliance (CMA). It proved to be an insightful event where all participants shared their strong determination to increase access to medicines in Europe. Now it's time for action: concrete steps to address medicine shortages and strengthen supply.

One of the key actions to address shortages is to create better market conditions. We need to treat the root causes of shortages, not just the symptoms. More reporting and stockpiling requirements will not solve the problem. More than 90% of medicines on the EU list of critical medicines are generics. However, low prices have discouraged too many players, who have left the market. Less competition means an even bigger burden on the supply situation. Governments need to prioritize better pricing models to secure sustainable supply.

There are three steps that the EU can take now to improve the situation for generics and biosimilars:

1.     Deliver clear legal guidelines for the public procurement of medicines. Not just benchmarks or recommendations, but real legal certainty. Tenders that purely reward the lowest price will only lead to further consolidation and offshoring of manufacturing. Tenders with multiple winners that reward investment in greener production and more resilient supply will not only enhance competition but also help to secure volumes and reduce the risk of stockouts. 

2.     Act to prevent ill-funded, excessive stockpile requirements.

The European Commission has the power to prevent the introduction of extensive country-level stockpile requirements that jeopardize the single market and the very principles of solidarity. Because mandatory stockpiles do not boost manufacturing -- they simply divert products from smaller markets to bigger ones. The logic is simple: mandating stockpiles does not increase existing production capacity, and a fixed number of products cannot be in two places at once. For example, six months of stock for Germany can represent up to 25% of the total EU supply. Can we really afford to put scarce medicines on shelves rather than using them for patient treatments?

3.     Make use of existing data from the European Medicines Verification System (EMVS).

We need to better understand the flow - where packs are available, or not. We have a wealth of data from the EMVS that can and must be used for the prevention and mitigation of supply shortages, instead of creating new reporting systems and obligations.

The off-patent industry’s goal is to increase access for patients. At Sandoz we remain committed to investing in Europe and delivering the savings that our healthcare systems rely on. Then it’s up to governments to decide what is more important: the lowest price or greater security of supply.

With the launch of the Critical Medicines Alliance, I am optimistic that we can make meaningful progress towards tackling medicine shortages and ensuring better access for all patients. And I look forward to this progress eventually being enshrined in clear and binding legislation, in the form of a Critical Medicines Act:

Then we could really say that Europe is getting its Act together!

Eugen D.

Strategic Business Leader | FMCG & Healthcare | Enhancing Performance through AI Solutions

8mo

I'm thrilled to see Sandoz at the forefront of the #CriticalMedicinesAlliance initiative! This collaborative effort in Brussels marks a significant step towards resolving the critical medicine shortages that affect so many lives. Sandoz's commitment to not just participate but lead in driving concrete actions speaks volumes about our dedication to healthcare excellence and patient well-being. It's initiatives like these that underscore our role as a leader in generics and biosimilars in Europe. Proud to be part of such a meaningful endeavor!

Alex Sanfeliu

General Management | Global Business Unit Head | Executive Committee member | Marketing and Sales | Healthcare Pharma Biotech | Inclusive Leadership | High Performing Teams | IESE MBA, UPC Engineer, ICF Coach

8mo

Thanks for representing the Pharma industry on the panel yesterday. I fully support your comments about an economic framework to reward healthy competition and ensure agility in the system, as well as working together with solidarity. We look forward to addressing as one team such a fundamental topic for the EU and its citizens.

Yanze Kontchou ☕ Coffee and Pharma

Maßgeschneiderter Premiumkaffee, ganz nach deinem Geschmack!

8mo

It is great tackling the critical medicines shortage! Thanks Rebecca Guntern

Alister Martin

CEO | A Healthier Democracy | Physician

8mo

The launch of the Critical Medicines Alliance marks a significant step forward in addressing shortages of critical medicines in Europe. It's encouraging to see the EU Commission and stakeholders taking proactive measures to solve this pressing issue.👍🏽

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