The National Drug Manufacturers (KPL), an organization associating 18 drug factories in Poland, submitted a petition to the European Parliament to subsidize the production of active substances, which is the most important element of each drug. The petition was accepted and will be considered in the fall.

Until the mid-90s, Europe and the USA provided 90% of substances used in the production of drugs in the world. Today it is only 20%, and the remaining 80% of active substances used in the pharmaceutical industry in Europe are manufactured in China or India. The aim of the petition is to regain independence from supplies from Asia

“As a result of production interruptions in local factories and global transport, and the increased demand for pharmaceuticals around the world, the principle of international solidarity has been violated, which has translated into shortages of drugs and active substances”, write Polish drug manufacturers.

While Europe already has the main wave of Covid-19 behind it, China continues to face a huge number of cases, which are linked to the lockdowns of cities and therefore production facilities. According to the Polish experts, it is, therefore, necessary for the EU authorities to develop mechanisms to support the production capacity of pharmaceutical substances.

“Lack of them, higher labour costs and the need to meet stringent environmental standards in Europe make pharmaceutical production unprofitable. Investments will be needed to restore it to the extent necessary to ensure the security of the EU. The implementation of the production of one active substance takes from 3 to 6 years, and its cost, depending on the required synthesis technology, is estimated at EUR 50-180 million”, write KPL experts.

According to the president of KPL, Krzysztof Kopeć, establishing criteria to support plants producing pharmaceutical substances and opening EU production lines would contribute to ensuring safety.

Another direction could be the establishment of a system of subsidies for the production of these substances, similar to direct subsidies for agricultural production. “The support system should reduce manufacturing costs to enable the pharmaceuticals price to be lowered and to compete with Asian products”, say Polish drug manufacturers. 20 years ago, there were about 170 producers of active substances in Poland, today there are over a dozen of them.

Arkadiusz Słomczyński order