October 2013

corporate & commercial LAW

ROYAL DECREE 782/2013 OF 11 OCTOBER ON THE DISTRIBUTION OF MEDICINES FOR HUMAN USE


 1. purpose and scope

 2. supply and delivery

 3. OPERATING requirements

 4. BROKER And distribution activities


On Saturday 19 October, the Spanish Official Gazette published the long-awaited royal decree on the distribution of medicines for human use (Royal Decree 782/2013 of 11 October, the “New RD”). The wording of the New RD is practically identical to the last draft published by the Ministry of Health almost a year ago, in November 2012.

Royal Decree 2259/1994, which had been obsolete for many years, is repealed to give way to a new regulation that is more in line with the current safety requirements for the distribution of medicines. The New RD incorporates into Spanish law the changes brought in the framework of the distribution of medicines by the new EU regulations on preventing falsified medicines entering the supply chain and pharmacovigilance.

More stringent safety requirements for the manufacture and distribution of active ingredients are put in place to tackle serious public health risks posed by their falsification or inadequate manufacturing or distribution. In this regard, Royal Decree 824/2010 of 25 June on pharmaceutical laboratories, manufacturers of active ingredients for pharmaceutical use and foreign trade in medicines and investigational medicinal products is amended.

We highlight the most significant aspects of the New RD:

1. purpose and scope

Although already operating in the medicine distribution market, entities known as medicine brokers were not subject to control or regulation; this has been remedied by the New RD.

The New RD covers all entities involved in the distribution of medicines: (i) wholesalers; (ii) third party warehouses (almacenes por contrato); and (iii) warehouses under customs control or surveillance (almacenes de medicamentos bajo control o vigilancia aduanera).

In the context of distribution, the right of pharmaceutical companies established in Spain to directly sell their products is recognized in the New RD. The obligations and requirements to be observed by these pharmaceutical companies to directly sell their products are similar to those that must be met by distributors in terms of general principles and operating requirements.

Pharmaceutical companies established in another Member State that hold marketing authorizations for medicines (or their local representatives in Spain) must carry out their wholesale distribution activities in Spain through entities authorised to do so.

All agents involved in the distribution of medicines must seek to ensure good distribution practices are complied with. According to the New RD, the good distribution practices will be published by the Ministry of Health (and will surely be aligned with those of the EU[1]). Lastly, the New RD provides that, besides a distribution authorisation, distributors must hold an in-date certificate of compliance with good distribution practices. This certificate will be issued by the relevant health authority, although the New RD does not clarify if the national or regional health authorities will be responsible for these certificates.

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2. supply and delivery

Unlike in its draft versions, the New RD does not establish an obligation on pharmaceutical companies to guarantee the supply of medicines to “all authorised wholesalers”. In line with recent case law, to do so would have been contrary to Law 29/2006 of 26 July on Guarantees and Rational Use of Medicinal Products and Medical Devices (the “Guarantees Law”).

Article 68 of the Guarantees Law has been developed by the New RD to require pharmaceutical companies and distribution entities to guarantee that pharmacies are supplied “to ensure that patient needs are covered”.

Furthermore, the New RD defines the situations in which the AEMPS (Spanish Agency of Medicines and Medical Devices) may adopt measures to resolve shortage situations, including limiting exports of medicines outside of Spain. These measures may be applied to medicines that, owing to their active ingredient, dosage or route of administration, are the only ones registered in Spain for a certain pathology, or to those for which there is no alternative available to pharmacists.

The New RD also establishes a restriction of unquestionable practical importance which means that wholesalers and pharmaceutical companies will only be able to accept returns from pharmacies and pharmaceutical services that were (directly) supplied with the medicines being returned. The aim of this measure is to bring to an end a system that created opportunities for medicine trafficking.

The New RD finally develops article 2.5 of the Guarantees Law on direct sales of medicines to professionals, although with limitations as these sales will only be possible through pharmacies. The AEMPS must now publish on its website a list of all the medicines that may be directly sold to professionals.

3. OPERATING requirements

In line with the repealed Royal Decree 2259/1994, the New RD sets out some of the basic operating requirements to be met by distributors. For example, they must comply with delivery terms and minimum delivery frequencies so as to guarantee that pharmacies and pharmacy services receive medicines ordered within 24 hours.

The operating requirements established for brokers mainly relate to transparency and the need for them to manage the information related to their transactions adequately.

4. BROKER And distribution activities

Brokers do not need to obtain an authorisation prior to carrying out distribution activities (nor do pharmaceutical companies established in Spain). Brokers only need to notify the AEMPS their contact details and request their inclusion in the registry of medicine brokers.

In connection with the authorisation that distribution entities must obtain before they begin operating, the New RD establishes a term of 90 days to notify the applicant of the approval or denial of the authorisation. If the authorities do not issue a decision within this term, the authorisation can be assumed granted.

 


[1] Directive 2011/62/EU of the European Parliament and of the Council of 8 June 2011 and Guidelines of 7 March 2013 on Good Distribution Practice of Medicinal Product for Human Use.

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The information contained in this Newsletter is of a general nature and does not constitute legal advice