The difficulties in accessing critical and specialized treatments, as well as shortages that have become increasingly acute in recent years, continue to concern mainly small EU member states, such as Cyprus, since the size of their population almost always ranks them low on the priority list of the international pharmaceutical industry.
Through the new European Regulation on Critical Medicines (Critical Medicines Act) and the agreement reached about two weeks ago under the Cypriot Presidency of the Council of the EU, a new effort is being made to address the inequalities that currently exist between small and larger states, with the overall main goal, of course, of strengthening security of supply for all member states. through joint procurement of medicines and more effective management of shortages.
The Minister of Health, Neophytos Charalambidis, analyzed the importance of the agreement to "F", explaining that it is "a very important development for the European Union as a whole". For Cyprus, the Minister of Health explained that "for small states, one of the biggest problems is the difficulty of accessing certain medicines due to a small market, limited bargaining power or low commercial priority for companies".
He clarified that "the Regulation on critical medicines introduces the possibility of Collaborative Procurement, where five or more member states can join their needs and ask the European Commission to proceed with joint procurement. This is particularly important for Cyprus, because it increases its bargaining power, reduces the risk of being left without critical medicines due to low market volume, improves access to critical medicines, orphan medicines and medicines of common interest, allows for better cooperation with other member states to meet needs in times of shortage," he said.
He also added that "for a small country, such as Cyprus, this possibility can be an essential tool for ensuring the adequacy of medicines, especially when the national market is not attractive to suppliers".
In addition, he said, "a very important sector of Cyprus that is expected to benefit is the pharmaceutical industry. The Regulation on Critical Medicines introduces the institution of "Strategic Projects", through which companies active in the production of critical medicines or active substances can ensure easier access to European and national funding, state aid, acceleration of administrative procedures, faster authorizations and approvals."
At the same time, Mr. Charalambides noted, "for a country like Cyprus, which has a growing pharmaceutical sector with exports, this can create significant investment and production opportunities." As he mentioned, "Cypriot companies can potentially use these tools to strengthen or expand their production base, especially in sectors such as critical medicines, where the Regulation provides for even faster procedures. This means that Cyprus will not only be able to better meet its internal needs, but also upgrade its position as part of the European pharmaceutical supply chain," he added.
Summing up, he pointed out that "the Republic of Cyprus, with its decisive role during the Cypriot Presidency of the Council of the EU, benefits industrially, through the financing and development opportunities of the Cypriot pharmaceutical industry, practically and operationally, through joint procurement, better shortage management and greater security of supply, strategically, through the new European policy that places greater emphasis on resilience and not only on cost. For Cyprus, as a small member-state with a limited market size but significant potential in the pharmaceutical sector, this new Regulation can be an important tool both for the protection of public health and for the strengthening of the national pharmaceutical strategy for the benefit of citizens."
Public procurement and evaluation
In relation to public procurement, the Minister of Health noted that "until today, in many cases, the public procurement of medicines was mainly based on the lowest price". As he said, "this philosophy is now changing and allows member states to take into account other factors such as supply chain resilience, diversification, supplier reliability, the degree of production within the EU."
At the same time, he explained that "this is expected to help Cyprus in particular, as it allows it to organize public procurement, based not only on cost but also on security of supply – something particularly critical for an island."
Resilience in times of shortages and enhancing health security
Neophytos Charalambides also stated that the Regulation "also provides for better coordination between states in terms of strategic stocks (contingency stocks), exchange of information on available stocks, possibility of activating solidarity mechanisms between states. This is very important for Cyprus, because in case of shortages it will be able to have better access to European support mechanisms and not face supply problems on its own. For small and remote member states, this significantly enhances health security," he said.
Referring to international cooperation, he noted that "the Regulation also provides for the development of strategic partnerships with third countries to diversify the sources of supply of active substances and critical medicines". As he explained, "this can indirectly benefit Cyprus, as it reduces the European market's dependence on a limited number of suppliers and enhances the overall stability of the market, which ultimately has a positive effect on the Cypriot market as well."
The political strengthening of Cyprus
"The agreement on the Critical Medicines Regulation is a very important development for both the European Union as a whole and for Cyprus, which is equally affected at a political, strategic, industrial and practical level," said the Minister of Health.
As he explained, "Cyprus, during the exercise of the Cypriot presidency of the Council of the European Union, played a decisive role in reaching the preliminary agreement with the European Parliament" and stressed that "reaching the agreement on such an important and complex European dossier was a key goal of the Cyprus presidency and, at the same time, can be described as a particularly important success for Cyprus".
"The fact that a small member-state, such as Cyprus, managed to effectively manage such an important legislative file and lead the negotiations to a successful conclusion, significantly strengthens the political credibility and prestige of our country at the European level," he said, adding that "reaching a preliminary agreement with the European Parliament is the culmination of the political will of the government, demonstrated through the exercise of the Presidency of the Council, for a development that has a significant benefit for European patients."
