Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Germany tells drugmakers to check supply chains for no-deal Brexit risks

Published 29/08/2018, 13:41
© Reuters. Russia's President Putin chairs a government meeting in Omsk
MRK
-
BAYGN
-
SASY
-

By Ludwig Burger

FRANKFURT (Reuters) - German drugmakers have been asked by the government to examine their supply chains for any vulnerability that could cause shortages of essential drugs in the event that Britain leaves the European Union without a Brexit deal.

More than 2,600 drugs have some stage of manufacture in Britain and 45 million patient packs are supplied from the UK to other European countries each month, while another 37 million flow in the opposite direction, industry figures show.

Germany's Federal Institute for Drugs and Medical Devices (BfArM) has ordered the country's main drug industry associations to gather information on the effect of a no-deal Brexit, a spokeswoman for the health ministry said.

"The Ministry of Health currently has no evidence that the exit of the United Kingdom will lead to any disruptions in the supply of medicines in Germany," the spokeswoman said.

It is not yet clear when results will be available, she said.

Britain, which voted in 2016 to leave the EU, has served notice that it will quit the bloc next March but has yet to reach a deal on future trading relations.

The EU's drugs regulator, the European Medicines Agency (EMA), on Wednesday said that it and national regulators had set up a task force to minimise supply disruptions arising for any reason over the next two years.

"The withdrawal of the United Kingdom from the EU is also likely to affect the availability of medicines in the EU," it said.

The UK government has already asked British drugmakers to build an additional six weeks of medicine stockpiles to prepare for any no-deal Brexit - a target the industry has said will be challenging.

Germany is using BfArM's quarterly "Jour Fixe" meetings with various stakeholder groups on drug shortages to prepare for Brexit.

BfArM in 2016 instated the meetings with groups representing drugmakers, physicians, pharmacists, drugs distributors as well as other government bodies to monitor and mitigate against drug shortages.

The meetings have dealt with shortages of treatments such as Mylan's Epipen against allergic shock, branded as Fastjekt in Germany, as well as disrupted supply of blood pressure drug valsartan after batches produced in China had to be recalled due to toxic impurities.

Industry groups, which include German drugmakers including Bayer (DE:BAYGN), Merck (NYSE:MRK) KGaA and Boehringer Ingelheim as well as foreign suppliers such as Teva and Roche, have been asked to consider the "worst-case-scenario of a hard Brexit without transition period", according to meeting protocols.

The highly regulated drugs sector is one of the most vulnerable to Britain's decision to leave the EU because of uncertainty as to how medicines oversight will function in the event of an abrupt exit next March.

That has sparked fears of drug shortages, and some companies including AstraZeneca, Sanofi (PA:SASY) and Novartis have said they plan to increase stockpiles in Britain in case of a no-deal Brexit.

© Reuters. Russia's President Putin chairs a government meeting in Omsk

Britain is set to leave that EU regulatory system and the Europe-wide drugs watchdog is moving from London to Amsterdam, prompting many drugmakers to prepare duplicate product testing and licensing arrangements.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.