EU okays new rules to flood third world countries with generic medicines,biosimilar products

BRUSSELS, Belgium -The European Union (EU) has come a step closer to adopting new rules that will boost the export of generic medicines and biosimilar products to third countries.

EU ambassadors meeting today in Coreper agreed on the Council’s position on a draft regulation which introduces an exception for manufacturing for export purposes (manufacturing waiver) to the protection granted to an original medicine by a supplementary protection certificate (SPC).

But the European parliament will have to okay the new rules. “Once the European Parliament agrees on a negotiating mandate, the Romanian presidency will start negotiations with the European Parliament with the aim of adopting the regulation at first reading”, the EU said.

Under the new rules, EU-based makers of generics and biosimilars will be entitled to manufacture a generic or biosimilar version of an SPC-protected medicine during the term of the SPC if done exclusively for the purpose of exporting to a non-EU market where protection has expired or never existed.

The draft regulation is expected to remove the competitive disadvantages faced by EU-based manufacturers of generics and biosimilars vis-à-vis manufacturers established outside the EU in global markets, but also in day-1 EU markets by building up production capacity.

The exception will operate only where generics or biosimilars are produced exclusively for export to third countries where protection of the original medicine does not exist or has expired; the maker has provided the information required by the regulation to both the authorities of the member state of production and to the holder of the SPC at least three months in advance; the maker has duly informed all those involved in the commercialisation of the product covered by the exception that the product can be put on the market only outside the EU; the maker has affixed to the packaging of the product the specific logo provided for by the regulation indicating clearly that it is only for export.

Until a set date (three years from the entry into force of the regulation), the regulation will affect only SPCs that are applied for on or after the date of entry into force of the regulation. From then on , the regulation will also affect SPCs applied for before the entry into force of the regulation, but which have become effective after the entry into force of the regulation.