The United States and the European Union (EU) announced that they have agreed to mutually recognize each other’s pharmaceutical manufacturing inspections, an agreement that is likely to mean less duplication of inspections and thus lower costs for both the EU and United States.
Under the Pharmaceutical Annex to the 1998 US-EU Mutual Recognition Agreement, US and EU regulators can utilize each other’s good manufacturing practice (GMP) inspections of pharmaceutical and active pharmaceutical ingredient manufacturing facilities. In addition to lower costs and reducing duplication of inspections, the agreement will allow regulators to devote more resources to other parts of the world where there may be greater risk.1 “The Mutual Recognition Agreement is an important step in working collaboratively and strategically with key partners to help ensure that American patients have access to safe, effective and high quality drugs,” said FDA associate commissioner for global regulatory policy, Dara Corrigan.
The FDA and the European Medicines Agency (EMA) were collaborating since May 2014 on evaluating how they each inspect drug manufacturers and assess the risks and benefits of mutual recognition of drug inspections. The FDA observed 14 of the EU’s Joint Audit Programme, a cooperative evaluation in which 2 EU nations audit the regulatory authority of another EU country and will be observing more this year. The EMA has mutual recognition GMP agreements in place with several countries including Switzerland, Japan, and Canada.
The mutual recognition agreement was originally part of the Transatlantic Trade and Investment Partnership discussions conducted under President Barack Obama.2 A major point of negotiation for both the FDA and EMA was the question of trade secret information because inspections usually involve specifications of manufacturing equipment and processes that are proprietary.
The text of the mutual recognition agreement is available here.
References
How AI Can Help Address Cost-Related Nonadherence to Biologic, Biosimilar Treatment
March 9th 2025Despite saving billions, biosimilars still account for only a small share of the biologics market—what's standing in the way of broader adoption and how can artificial intelligence (AI) help change that?
Will the FTC Be More PBM-Friendly Under a Second Trump Administration?
February 23rd 2025On this episode of Not So Different, we explore the Federal Trade Commission’s (FTC) second interim report on pharmacy benefit managers (PBMs) with Joe Wisniewski from Turquoise Health, discussing key issues like preferential reimbursement, drug pricing transparency, biosimilars, shifting regulations, and how a second Trump administration could reshape PBM practices.
Biosimilar Approvals Streamlined With Advanced Statistics Amidst Differing Regulatory Requirements
February 25th 2025The FDA and European Medicines Agency (EMA) mandate high similarity between biosimilars and reference products, but their regulatory processes differ, especially with multiple reference products.