Select Committee on European Scrutiny Thirty-First Report


5 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
DepartmentHealth
Basis of considerationMinister's letter of 25 March 2006
Previous Committee ReportHC 34-xiv (2005-06), para 6 (11 January 2006) and HC 34-xxx (2005-06), para 3 (24 May 2006)
To be discussed in CouncilNo date set
Committee's assessmentLegally and politically important
Committee's decisionNot cleared; further information awaited

Background

5.1 In 2001, the Council adopted a Directive on medicinal products for human use.[15] It contains rules for Member States to follow on the authorisation, manufacture, importation, labelling and distribution of medicinal products. An amending Directive was adopted in 2003.[16] It includes provision on two advanced therapy medicinal products — gene therapy medicinal products and somatic cell medicinal products.

5.2 In 2004, the Council adopted the Cells and Tissues Directive.[17] It sets standards of quality and safety for the donation, procurement, testing, processing, preservation, storage and distribution of human tissues and cells. 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.[18]

5.3 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.

Previous scrutiny of the draft Regulation

5.4 Gene therapy medicinal products and somatic cell medicinal products are already regulated under EC law. But tissue engineered products 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".[19]

5.5 When we considered the draft Regulation in January, the then Minister of State for Quality and Patient Safety at the Department of Health (Jane Kennedy) told us that the Government was still considering whether Article 95 of the EC Treaty was an appropriate legal base for the proposal. Moreover, the document was being considered by the Medicines and Healthcare Products Regulatory Agency and the Department of Trade and Industry to see if it met the Government's objectives. The Government was seeking the views of the bio-technology and healthcare industries.

5.6 We asked 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 biotechnology and health industries;
  • 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
  • to provide us with progress reports on the negotiations in the Council.

5.7 Moreover, we asked the Health Committee for its opinion on the draft Regulation.[20]

5.8 On 25 March, the Minister replied. We have not been able to find out why the letter did not reach us until 26 May.

The Minister's letter of 25 March 2006

5.9 The Minister's letter referred to draft legislation the Commission proposed in December 2005 to amend three existing Directives on Medical Devices.[21] The Department of Health was considering the links between those proposals and new proposed Regulation on advanced therapy medicinal products.

5.10 The letter also said that the Department and the Medicines and Healthcare Products Regulatory Agency had had extensive discussions about the draft Regulation with hospitals, academics, medical charities, industry and consumer groups. Overall, those discussions indicated broad support for it subject to clarification and amendment of some of the definitions. Stakeholders also wished to ensure that regulation is proportionate. There will be further meetings with them during the negotiations.

5.11 The Minister added that the Government's assessment of the proposals:

    "is that, while they have a number of benefits, in aggregate they do not fully address an existing problem, that some products containing human and animal tissues/cells and used for medicinal purposes fall into gaps between the medicines and medical devices regulatory regimes. We believe that some of these products would continue to be inadequately regulated under the current proposals. In negotiations we have raised the issue of 'gap' products and are seeking a resolution that ensures products can be regulated in a way that is coherent, proportionate and reflects the characteristics of the product. More generally, we will seek to ensure that the specific provisions of the Regulation and, if it is agreed, the follow up technical requirements and guidelines are proportionate and risk based.

    "The other key issue relates to the proposed exemption for hospitals under the Regulation. The proposal would exempt products from the requirements set out in the Regulation where the product is both prepared in full and used in a hospital in accordance with a medical prescription for an individual patient. Our discussions with stakeholders and in the early negotiations in the Council have indicated that the proposed exemption raises complex issues. On the one hand, it is desirable to ensure a consistent level of public health protection irrespective of where a product is made and used. On the other hand, there is a need for sufficient flexibility to ensure that hospitals can carry out their normal activities, with clinicians taking professional responsibility for treatments and therapies they deem to be in the interests of patients. Our position is that it may be better to link the proposed exemption to the characteristics of the activity rather than to specific institutional arrangements."

5.12 In response to our question about the Government's opinion on the use of Article 95 of the EC Treaty as the legal base for the draft Regulation, the Minister referred us to the judgment of the European Court of Justice in the Smoke Flavourings case.[22] In the light of that judgment, the Government's preliminary view was that it might have to accept that Article 95 would be appropriate; in due course, the Government would inform us of its considered opinion.

Conclusion

5.13 We should be grateful for further reports from the Government on the progress of the Council's negotiations and, in particular, on the discussions about the links and gaps between the proposed Directive on medical devices and the draft Regulation on advanced therapy medicinal projects. We also await confirmation of, and an explanation of the reasons for, the Government's opinion on whether Article 95 would provide an appropriate legal base for the Regulation. Pending receipt of this further information, we shall keep the document under scrutiny.


15   Directive 2001/83/EC: OJ No. L311, 28.11.2001, p.67. Back

16   Directive 2003/63/EC: OJ No. L159, 27.6.2003, p.46. Back

17   Directive 2004/23/EC: OJ No. L102, 7.4.2004, p.48. Back

18   Regulation (EC) No. 726/2004: OJ No. L136, 30.4.2004, p.1. "Pharmacovigilance" is the monitoring of the quality, safety and efficacy of marketed medicines. Back

19   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

20   We reported on the Health Committee's opinion in HC 34-xxx (2005-06), para 3 (24 May 2006).  Back

21   (27152) 5072/06: we cleared the document, without a substantive report to the House, on 1 February 2006. The three existing Directives on Medical Devices are Council Directives 90/385/EEC, 93/42/EEC and 98/8/EC. Back

22   Case C-66/04, United Kingdom v. European Parliament and Council, judgment of 6 December 2005. Back


 
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Prepared 26 June 2006