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European Health Union: Medicine Shortage Rules Take Operational Form

Stockholm: The European Health Union has entered a new phase of operational maturity with the formal designation of strategic medicine stockpiles under the Critical Medicines Act, whose implementing regulation took effect on 11 May. The legislation, adopted in February after protracted negotiations, establishes the first Union-wide framework for the prevention and management of shortages of essential medicinal products, a vulnerability that the pandemic and subsequent supply disruptions exposed in stark terms.

The Swedish Medical Products Agency, which serves as a coordinating focal point for the Nordic-Baltic regional cluster, this week submitted its inventory of nationally critical products and the corresponding stockpile commitments. Across the Union, an initial list of 285 essential medicines has been identified as subject to coordinated supply security measures, including antibiotics with limited European production capacity, oncology compounds with single-source dependencies, and a range of paediatric formulations whose discontinuation has caused recurring clinical concern.

The Critical Medicines Act’s framework rests on three principal pillars. The first establishes early warning obligations on marketing authorisation holders, requiring notification of potential shortages at least six months in advance where the discontinuation is planned, and immediately upon detection of unexpected supply disruption. The second provides for coordinated joint procurement, building on the institutional architecture developed under the HERA emergency framework. The third incentivises diversification of supply chains through both regulatory tools, including extended marketing exclusivity for products that establish European Economic Area manufacturing, and dedicated financial support under the EU4Health programme.

The European Medicines Agency’s reorganisation to support the new framework has been extensive. A dedicated Critical Medicines Working Party began operating in March, with a remit that spans supply chain analysis, regulatory pathway acceleration for alternative formulations, and coordination with the European Centre for Disease Prevention and Control on clinical demand forecasting. The agency’s annual budget has been increased by 14 percent to accommodate the additional functions, financed partly through fees on marketing authorisation holders and partly from the general Union budget.

Civil society organisations, including the European Patients’ Forum, have welcomed the framework while pressing for greater transparency in the criteria used to designate products as critical. Their position paper, submitted to the Commission in April, argues that patient representation on the relevant scientific committees should be strengthened and that the criteria for inclusion on the strategic list should be subject to periodic independent review.

Industry representation, by contrast, has focused on the regulatory burden of the new reporting obligations. The European Federation of Pharmaceutical Industries and Associations has argued that compliance costs may disproportionately affect smaller manufacturers of established generic and biosimilar products, precisely the segment of the market that the legislation seeks to protect. The Commission has acknowledged this tension and committed to a proportionality review after the framework’s first 18 months of operation.

The financial architecture remains a point of negotiation. While the Critical Medicines Act provides for joint procurement at Union level, the bulk of stockpiling costs continues to fall on Member State budgets. The European Court of Auditors is expected to publish a thematic review of the framework’s fiscal sustainability before the end of 2026.

For European health systems, the practical test will come not from policy texts but from supply disruption events. The framework’s first stress test will be its most consequential validation.