Select Committee on European Scrutiny Fourteenth Report


6 DEVELOPMENT AND REGULATION OF ADVANCED THERAPY MEDICAL PRODUCTS

(27059)
15023/05
COM(05)567

+ ADD 1
Draft Regulation on advanced therapy medicinal products and amending
Directive 2001/83/EC and Regulation (EC) No. 726/2004


Commission staff working document — impact assessment


Legal baseArticle 95 EC; co-decision; QMV
Document originated16 November 2005
Deposited in Parliament 1 December 2005
DepartmentHealth
Basis of consideration EM of 14 December 2005
Previous Committee Report None
To be discussed in Council No date set
Committee's assessmentLegally and politically important
Committee's decisionNot cleared; further information and the opinion of the Health Committee requested

Background

6.1 Article 14 of the Treaty establishing the European Community (the EC Treaty) makes provision for measures to establish the internal market, comprising an area without internal frontiers and with free movement of goods, people, services and capital.

6.2 Article 95(1) of the EC Treaty requires the Council to adopt measures for the approximation of the laws of Member States which have as their objective the establishment and functioning of the internal market. Article 95(3) requires that such measures, if concerned with health and safety, should "take as a base a high level of protection, taking account in particular of any new development based on scientific fact".

6.3 In 2001, the Council adopted a Directive on medicinal products for human use.[21] It contains rules for Member States to follow on the authorisation, manufacture, importation, labelling and distribution on medicinal products. An amending Directive was adopted in 2003.[22] It includes provision on two advanced therapy medicinal products — gene therapy medicinal products and somatic cell medicinal products.

6.4 In 2004, the Council adopted the Cells and Tissues Directive. It sets standards of quality and safety for the donation, procurement, testing, processing, preservation, storage and distribution of human tissues and cells.[23] The Council also adopted a Regulation laying down Community procedures for the authorisation, supervision and pharmacovigilance of medicinal products for human use and establishing the European Medicines Agency.[24]

6.5 A number of gene therapy and somatic cell therapy products are already being tested for the treatment of cancer, diabetes, Parkinson's disease and other neurodegenerative diseases.

6.6 Another new biotechnology has emerged: tissue engineering. It combines aspects of medicine, cell and molecular biology, materials science and engineering. The aim of tissue engineering is to develop products to regenerate, repair or replace human tissues, such as skin, bone and cartilage.

The document

6.7 As noted above, gene therapy medicinal products and somatic cell medicinal products are already regulated under EC law. But tissue engineered products (TEPs) are not. The purpose of the draft Regulation is to make rules for the authorisation, supervision and pharmacovigilance of all three types of product, collectively defined as "advanced therapy medicinal products".[25]

6.8 Gene therapy, somatic cell therapy and tissue engineered products share some features: for example, they are based on highly innovative manufacturing processes; there is a scarcity of people with the expertise to evaluate the therapies; and it is essential to make provision to trace the recipients of the advanced therapies and to monitor the long-term safety of the products. Recital 4 of the draft Regulation says that — because of the novelty, complexity and technical specificity of advanced therapy medicinal products — specially tailored rules are needed to ensure their free movement within the Community and the effective operation of the internal market for biotechnology.

6.9 The objectives of the Commission's proposal are to:

  • protect human health;
  • improve the functioning of the internal market for advanced therapy medicinal products;
  • foster the competitiveness of European bio-technology undertakings; and
  • provide legal certainty.

6.10 The draft Regulation includes provision on:

  • the application to advanced therapy medicinal products of the provisions of the Cells and Tissues Directive on donation, procurement and testing;
  • clinical trials, including a requirement for the Commission to issue detailed guidance on good clinical practice specific to advanced therapy medicinal products;
  • the publication by the Commission of good manufacturing practice for advanced therapy medicinal products;
  • specific technical requirements for TEPs;
  • the evaluation procedure for advanced therapy medicinal products;
  • information to be displayed on the packaging of the product and in the leaflet inside the package;
  • post-authorisation risk management;
  • the traceability of products;
  • a 90% reduction in the European Medicines Agency's fees for advice to the applicants for or holders of a marketing authorisation of an advanced therapy medicinal product;
  • assistance to small and medium-sized enterprises (SMEs) which are developing advance therapy medicinal products; and
  • the creation of a Committee for Advanced Therapies within the European Medicines Agency.

6.11 The draft Regulation also contains a requirement for products which are on the market when the Regulation comes into effect to be made compliant with the Regulation within two years. Applicants for the authorisation of such products would be exempt from the European Medicines Agency's normal fee for authorisation.

The Government's view

6.12 The Minister of State for Quality and Patient Safety at the Department of Health (Jane Kennedy) tells us that the Government's view had been that Article 95 of the EC Treaty was not an appropriate legal base for measures to establish a centralised EC procedure or body. She says that the Government is reviewing its position in the light of the judgement of the European Court of Justice on 6 December 2005 in the "Smoke Flavourings" case.[26]

6.13 The Minister tells us that, in 2002, the Medical Devices Agency (now the Medicines and Healthcare Products Regulatory Agency) issued a code of practice for the production of human-derived therapeutic products. Compliance with the code is voluntary.

6.14 The proposed Regulation is currently being considered by the Medicines and Healthcare Products Regulatory Agency and the Department of Trade and Industry to see if it meets the Government's objectives. The Government is also seeking the views of the bio-technology and healthcare industries.

6.15 The Minister has sent us her Department's initial Regulatory Impact Assessment of the proposal. It concludes as follows:

    "The tissue engineering sector is currently small and is expected to develop as a result of scientific and technological progress in the coming years. The impact of the proposed regulatory framework is, therefore, difficult to measure. An analysis of the potential costs and benefits associated with this proposal will be undertaken in consultation with stakeholders who are currently involved in tissue engineering activity in order to better gauge the impact of the proposal for the UK. Given the fragmented and developing nature of the sector it may prove difficult to establish detailed costs."

Conclusion

6.16 The Government's and the Council's consideration of this draft Regulation is at a very early stage. We cannot reach a view on it without further information. We ask the Minister to tell us:

  • the Government's view of the appropriateness of Article 95 of the EC Treaty as the legal base for the Regulation;
  • the outcome of the Government's consultations with the bio-technology and healthcare industries; and
  • the Government's views on the proposal in the light of its own and the Medicines and Healthcare Products Regulatory Agency's detailed examination of the draft Regulation; and progress reports on the negotiations in the Council.

In due course, we shall also need to see the completed Regulatory Impact Assessment.

6.17 Moreover, in accordance with paragraph (11) of our Standing Order No. 143, we request the opinion of the Health Committee on the draft Regulation by 18 April 2006.

6.18 Pending receipt of this information, we shall keep the document under scrutiny.



21   Directive 2001/83/EC: OJ No. L 311, 28.11.2001, p.67. Back

22   Directive 2003/63/EC: OJ No. L 159, 27.6.2003, p.46. Back

23   Directive 2004/23/EC: OJ No. L 102, 7.4.2004, p. 48. Back

24   Regulation (EC) No. 726/2004: OJ No. L 136, 30.4.2004, p.1. "Pharmacovigilance" is the monitoring of the quality, safety and efficacy of marketed medicines. Back

25   The Regulation would apply to products to be placed on the market and either prepared industrially or manufactured by a method involving an industrial process. But the Regulation would not apply to products wholly prepared and used in a hospital in accordance with a prescription for an individual patient. Back

26   Case C-66/04, UK v European Parliament and the Council of the Union. 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 2006
Prepared 20 January 2006