Select Committee on European Scrutiny Twenty-Third Report


14 AUTHORISATION OF HUMAN AND VETERINARY MEDICINES: CENTRALISED PROCEDURES

(24142)
15793/02
COM(02) 735 
Amended draft Regulation laying down Community procedures for the
authorisation and supervision and pharmacovigilance of medicinal products
for human and veterinary use and establishing a European Agency for the
Evaluation of Medicinal Products.


Legal baseArticles 95 and 152(4) EC; co-decision; qualified majority voting
Document originated10 December 2002
Deposited in Parliament 7 January 2003
DepartmentHealth and Environment, Food and Rural Affairs
Basis of consideration EM of 17 January 2003 and Minister's letter of 29 May 2003
Previous Committee Report None, but see footnote
To be discussed in Council 2-3 June 2003
Committee's assessmentPolitically important
Committee's decisionCleared

Background

  14.1  In order to remove obstacles to the internal market in pharmaceuticals, whilst at the same time ensuring a high level of public health protection, the Community has gradually developed a harmonised legislative framework for human and veterinary medicinal products. The present system is based on two separate procedures for the granting of marketing authorisations:

  • a centralised procedure, granted by a Commission decision under Regulation 2093/93, and based on a scientific evaluation from the European Agency for the Evaluation of Medicinal Products (EMEA), leading to a single marketing authorisation valid throughout the whole Community;
  • a decentralised (mutual recognition) procedure under Council Directives 2001/82 and 2001/83/EC for those medicinal products not eligible for the centralised procedure or where the applicant chooses not to follow that procedure: this has to be used where an application for a marketing authorisation concerns two or more Member States, with one carrying out the scientific evaluation which the others are required to recognise (subject to the right to raise objections).

  14.2  In October 2001, the Commission produced, as required by Regulation 2309/93, a Report[32] on its operation to date, accompanied by proposals[33] to amend the procedures both in that Regulation and in the Community codes relating to human and veterinary medicines (which are set out in Directives 2001/83 and 2001/82 respectively). We reported on these two documents at some length on 20 March 2002, and, following our recommendation to that effect, they were debated in European Standing Committee C on 18 June 2002.

The current document

  14.3  In this document, the Commission has proposed, in the light of the amendments suggested by the European Parliament at its first reading on 23 October 2002, a number of changes to its proposals on the centralised procedures in Regulation 2093/93. The most important of these, together with the UK's reactions, were set out in a joint Explanatory Memorandum of 17 January 2003 from the then Parliamentary Under-Secretary of State at the Department of Health (Lord Hunt of Kings Heath) and the Parliamentary Under-Secretary of State (Commons) at the Department for Environment, Food and Rural Affairs (Mr Elliot Morley), though it was agreed that it would be sensible to defer consideration until comparable information was available on the decentralised procedures under Directives 2001/83 and 2001/82 (see paragraph 5 above).

ABOLITION OF RENEWALS

  14.4  In its original proposal, the Commission proposed that the present requirement for marketing authorisations to be renewed every five years should be replaced by one involving a continuous five-year administrative renewal, backed up by strengthened "pharmacovigilance" and supervision arrangements. It has now supported a European Parliament package on licence renewals, involving a single renewal after five years, with an indefinite authorisation thereafter for both human and veterinary products. At the same time, it has introduced a two year "sunset clause", extending to three years the maximum length by which a licence can remain dormant. The UK continues to have concerns about the abolition of five-yearly authorisation renewals and the introduction of a sunset clause, preferring instead a system which places the emphasis on the holder of an authorisation to supply information at regular intervals (at renewal) to justify that the risk benefit remains favourable and the authorisation remains up to date.

STRUCTURE OF THE EMEA BOARD

  14.5  With enlargement in mind, the Commission had originally proposed that the Management Board of the EMEA should in future have four representatives each from the Member States, Commission, European Parliament and "civil society" (the pharmaceutical industry and consumers). It now supports the model suggested by the Parliament (and based on that of the European Food Standards Agency), under which the Board would comprise 15 members drawn from bodies such as industrial associations, patients' and doctors' groups, and social security schemes, with each member being appointed by the Council and European Parliament from a list drawn up by the Commission. However, the UK considers that the functions of the EMEA and Food Standards Agency are completely different, and supports national representation in the former case, on the grounds that Member States are important stakeholders in the European regulatory system. Also, it opposes the inclusion of representation from social security schemes and industrial associations.

SUPPORT FOR SMALL AND MEDIUM-SIZED ENTERPRISES (SMES)

  14.6  The Commission now proposes to provide administrative and financial assistance to those small and medium-sized companies required to use the centralised procedure, whereas the UK supports the maintenance of flexibility in the choice of licensing route which would enable SMEs to target individual Member States to market their products and remove the need for financial assistance.

  14.7  In addition, the Government says that the Commission has secured the support of the European Parliament in the following areas.

SCOPE OF CENTRALISED AUTHORISATION PROCEDURE

  14.8  The European Parliament has supported the Commission's proposal to extend the scope of the legislation to require all new active substances to be authorised centrally. However, the Ministers say that the UK remains opposed to any extension of the centralised procedure, particularly in the case of veterinary medicines, where it is concerned that this would restrict industry's flexibility to take account of differences in species, farming techniques, environmental factors and disease patterns among Member States when developing new products. In particular, they believe that this would severely limit the development of medicines containing new active ingredients for minor species or indications and pet animals. They say that, in the light of the Parliament's position, the UK will modify its original support for greater choice as regards the licensing route, and will now argue for the retention of the status quo (which requires the use of the centralised procedure only for products derived from biotechnology and innovative products).

SUPPLY OF UNLICENSED HUMAN PRODUCTS ON COMPASSIONATE GROUNDS

  14.9  The Commission has proposed a derogation allowing unlicensed products to be made available on compassionate grounds, and has accepted a European Parliament proposal enabling such access between the dates of market authorisation and the actual placing on the market. The Minister says that the UK still has some concerns about the proposal as drafted, but is working with Member States to define better its use and the precise groups of patients to whom it might apply.

CONDITIONAL AUTHORISATIONS

  14.10  The Commission has supported a European Parliament proposal which would allow, in exceptional circumstances and following consultation with the applicant, an authorisation to be granted, subject to an obligation to establish special mechanisms for assessing the safety of the products. The Ministers say that the UK continues to have concerns about this.

PHARMACOVIGILANCE

  14.11  The Ministers say that the Commission's modified proposals include a number of provisions on pharmacovigilance, and that the UK supports moves to enable the EMEA to facilitate exchange of relevant data between Member States, whilst maintaining that the collection of such data should remain primarily a national responsibility.

Financial and regulatory implications

  14.12  The Government has supplied with its Explanatory Memorandum of 14 May 2003 on the proposed amendments to the decentralised procedures (see paragraph 5) a Regulatory Impact Assessment which covers as well the proposals in this document on the centralised procedures. This Assessment highlights the benefits which a centralised approach would provide in avoiding barriers to trade (whilst pointing out that these would also need to be weighed against the benefits which many see in the decentralised mutual recognition process); and it also draws attention to the potential benefits to public health, patients and other users arising from a more streamlined authorisation process, bearing in mind also the major contribution which the pharmaceutical industry makes to the UK economy. However, the Assessment also suggests that, in the case of human medicines, the proposals mainly involve a fine tuning of an already rigorous system, and that consequently there do not appear to be any significant financial implications.

Minister's letter of 29 May 2003

  14.13  We have received a letter of 29 May 2003 from the Parliamentary Under-Secretary of State at the Department of Health (Mr David Lammy) saying that the Greek Presidency intends at a meeting of the Council on 2-3 June to seek political agreement to a common position on this proposal, and on the amendments proposed to the decentralised procedures for human medicines set out in Directive 2001/83. He says that a number of compromises have emerged following publication of these modified proposals, and that agreement has been reached in several important areas. At the same time, the issues on which further discussion is likely include the harmonised periods of data exclusivity, the scope of the centralised procedure for human medicines, and the legal base (where the UK believes that Article 308 of the Treaty should be used, rather than Articles 95 and 152(4)). The Minister acknowledges that agreement on 2-3 June would mean that we would not be able to consider the current proposals beforehand, but he adds that there are important grounds for supporting the Presidency's efforts to achieve agreement at this particular meeting, as the accession of the new Member States (who strongly oppose the proposal on data protection favoured by the UK) could significantly delay matters.

Conclusion

  14.14  We have noted the Government's comments on the Commission's response to the European Parliament's proposed amendments, and that political agreement to a common position may have been reached by the Council at its meeting on 2-3 June. We also note the Minister's comments on the desirability of an agreement then, notwithstanding the absence of scrutiny clearance.

  14.15  Having said that, we recognise that the issues still outstanding on the proposal, which was debated in European Standing Committee C in June 2002, have been clearly identified, and that the financial implications so far as human medicines are concerned are unlikely to be significant. We are, therefore, clearing this document, but we would like the Government to let us know what is agreed by the Council.



32   (22867) 13361/01;see HC 152-xxii (2001-02), paragraph 3 (20 March 2002). Back

33   (23022) 14591/01;see HC 152-xxii (2001-02), paragraph 3 (20 March 2002). Back


 
previous page contents next page

House of Commons home page Parliament home page House of Lords home page search page enquiries index

© Parliamentary copyright 2003
Prepared 23 June 2003