Brexit fallout begins – MHRA loses EMA contracts; Britain’s GDP down 2 percent

By PharmaCompass

2018-09-06

Impressions: 205 Article

Britain will get no more work from Europe in evaluating new medicines for sale to patients across the EU. This decision by the European Medicines Agency (EMA), to cut Britain out of its contracts seven months ahead of Brexit, is said to be a devastating blow to British drug companies, which are already reeling from the loss of the EMA headquarters in London.

All drugs sold in Europe have to go through a lengthy EMA authorization process before use by health services. The Medicines & Healthcare products Regulatory Agency (MHRA) in Britain had built up a leading role in this work.

However, the EMA has awarded MHRA just two contracts this year. The EMA suggested the uncertainty surrounding Brexit has made Britain off limits for new regulatory contracts. The loss of contracts will act as a significant blow to the MHRA, who receive around US$ 18 million (£14 million) each year from the EMA.

Despite having bid for 36 different contracts this year, the MHRA were only awarded two, both of which were for drugs in which evaluation had already begun. In contrast, in both 2015 and 2016, the MHRA was awarded 22 separate contracts.

As if this was not enough, the EMA has also decided to reallocate existing contracts with the MHRA to bloc members.

The EMA has already started its move from London to its new headquarters in Amsterdam. It employs 900 people in London, and 84 have already relocated to Amsterdam. Around 300 of EMA’s staff are not expected to relocate.

The Brexit vote has already cost Britain more than 2 percent of economic output, even before the nation formally exits the EU, according to analysis by UBS Group AG.

In a note published earlier this week, the bank estimated that UK’s GDP is already lower by 2.1 percent than where it would have been had the UK voted to remain in the EU. Moreover, investment is 4 percent weaker, inflation 1.5 percent higher and consumption is 1.7 percent lower, the note added.

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“ The article is based on the information available in public and which the author believes to be true. The author is not disseminating any information, which the author believes or knows, is confidential or in conflict with the privacy of any person. The views expressed or information supplied through this article is mere opinion and observation of the author. The author does not intend to defame, insult or, cause loss or damage to anyone, in any manner, through this article.”

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