The Government must secure a post-Brexit deal for the
pharmaceutical industry that ensures the closest possible
regulatory alignment with the EU and the minimum border friction
possible or risk harming patients and seeing the pharma sector
losing its status as a world leader, say
the Business, Energy and Industrial Strategy
Committee in a report published today.
The Committee’s report, ‘The impact of Brexit on the
pharmaceutical sector’ finds that leaving the EU
without an agreement for the industry would diminish access to
markets, including £11.9billion of exports and to more than
446million potential patients and consumers in the EU. British
patients’ access to medicines would also be at risk, with nearly
three-quarters of pharmaceutical imports coming from the EU.
The report concludes that the prospect of regulatory divergence
from the European Medicines Agency (EMA) is the deepest concern
for the industry, which would mean pharmaceutical companies
needing to duplicate their facilities and roles across the UK and
EU. Drug costs could be significantly impacted. A separate regime
could impose extra costs of £45,000 for each new product
released, making the UK an unattractive market for new and
innovative medicines. While the Government has indicated its
desire for continued cooperation, the Committee calls for a
continued form of membership of the EMA as a priority, and
recommends that the Government seek to retain a presence for the
EMA in the UK after its relocation to Amsterdam.
Non-tariff barriers present a significant challenge to the pharma
industry with delays at the border putting time and temperature
sensitive treatments at risk. On tariff barriers, while WTO rules
ensure the impact of a ‘no deal’ on the industry would not be as
significant as for some other sectors, the Committee concludes
there could be harmful tariffs for many products. Barriers to
trade and duplicated regulations all could lead to higher prices
for medicines, with the NHS and consumers expected to pick up the
bill or risk reduced access to medicines. The Committee therefore
calls on the Government to pursue an agreement with the EU and
other partners that ensures continued access to markets and
medicines for the success of the pharmaceutical industry and the
benefit of patients.
MP, Chair of the Business,
Energy and Industrial Strategy Committee, said: “The
Government’s own analysis identifies pharmaceuticals as the
sector for which UK/EU market access is the most important given
the industry is reliant on friction-free border movement for
their products. Any delays at the border faced by
short-life pharmaceuticals for emergency treatments would have a
hugely detrimental impact on patients.
The Prime Minister has previously set out a positive and
compelling case for continued cooperation on medicines, but, with
the clock ticking, it is now time for the Government to end the
uncertainty and translate words into actions. Some form of
membership of the EMA is vital to the continued success of the
pharma industry and to the welfare of British patients and the
Government should strike a deal to keep some of the
organisation’s jobs and facilities in the UK, to continue to
share our world-leading expertise.
The Government must do all it can to reach an agreement that
not only protects the UK’s status as a world leader for
pharmaceuticals but also allows patients across the continent to
continue to be provided with the medicines they need.”
The report on the impact of Brexit on pharmaceuticals is the
fifth and final report in a series examining the impact of the
UK’s withdrawal from the EU on different sectors of the economy.
The Committee has previously published reports on processed food and
drink, automotive, aerospace and
the civil nuclear sector.
