REACH Regulations and Its Impact on Indian Pharmaceutical Market

European Union has opted for the acceptance ofproducts, hence are not exempted under REACH
REACH regulations on 1st June, 2007. REACH standsregulations. Intermediates for APIs need to be
for Registration, Evaluation, Authorization andpre-registered before the deadline of 30th Nov, 2008
Restriction of Chemical. The regulation is adopted forand then processed for its registration procedure.
streamlining and improving the former legislativeIntermediates for the APIs can be classified again
framework on chemicals of the European Union. Theunder 2 main categories under REACH:
regulations has put the Burden of Proof" on the* Non-isolated intermediates
industry to manage the risks that chemicals may* Isolated intermediates
pose to the health and the environment. REACH* On-site (non transported) isolated intermediates
regulations covers not only industrial chemicals but* Transported isolated intermediates
also chemicals, which are used in our day-to-day lifeA non-isolated intermediate is an intermediate that
(e.g. paints, dyes used for clothing, etc.)during synthesis is not intentionally removed (except
Objectives of implementing REACH regulations are:for sampling) from the equipment in which the
* Improve the protection of human health and thesynthesis takes place.
environment from the risks that can be posed byOn-site isolated intermediate means an intermediate
chemicalsnot meeting the criteria of a non-isolated intermediate
* Enhance the competitiveness of the EU chemicalsand where the manufacture of the intermediate and
industry, a key sector for the economy of the EUthe synthesis of another substance from that
* Promote alternative methods for the assessmentintermediate take place on the same site, operated
of hazards of substancesby one or more legal entities.
* Ensure the free circulation of substances on theA transported isolated intermediate is an intermediate
internal market of the European Union.not meeting the criteria of a non-isolated intermediate
All the exporters and importers of chemicals willand transported between or supplied to other sites.
identify and manage the risks and hazards associatedUnder REACH regulations, non-isolated intermediates
with the chemicals that they manufacture andare exempted from review process as non-isolated
market. REACH requires manufacturers and importersintermediates remain in the reaction process and are
of chemicals to produce data on all chemicalnot isolated.
substances that are produced or imported into theMost of Indian pharmaceutical companies exporting
EU in volumes above one ton a year. Appropriate riskintermediates for APIs would fall under the perview
management measures must also be identified andof the "Isolated intermediates" category for which
users informed of them.the companies will need to undergo review procedure
REACH regulations are imposed on manufacturers orunder REACH regulations.
importers of chemicals of more than 1 metric ton perRelief under Strictly controlled conditions:
annum per company. For companies who areFor both on-site and transported isolated
manufacturing and exporting more than 1 metric tonintermediates, there is possibility to provide a reduced
of a chemical to Europe will need to register theset of information for their registration under the
chemical by submitting the dossier and proving thatfollowing conditions:
the chemical is safe to use. Potential registrants (i.e.* For on-site isolated intermediates, the manufacturer
manufacturers and importers of chemicals) mustconfirms that the substance is only manufactured
'pre-register' these substances by December 1, 2008.and used under strictly controlled conditions in that it
Those that are not pre-registered by that date willis rigorously contained by technical means during its
have to undergo a full registration process inwhole life cycle.
December, or be withdrawn from sale. Supply of* For transported isolated intermediates, the
substances to the European market, which have notmanufacturer or importer confirms himself or states
been registered, would be considered as illegal.that he has received confirmation from the user that
REACH regulations are managed by Europeanthe synthesis of another substance from that
Chemicals Agency (ECHA), which will operate fromintermediate takes place on other sites under strictly
Helsinki, Finland.controlled conditions.
Although, REACH regulations cover all chemicals,Adding to the above-mentioned brief overview of
exemptions are provided for medicinal products.REACH regulations, all the steps of registration under
Hence, all active pharmaceutical ingredients (APIs) andREACH regulations are expensive as all the products
their finished dosage forms are exempted from the(other than exempted products) need to be
cover of REACH regulations.registered individually.
There are many companies in India, whichIn conclusion, impact of REACH regulations in India's
manufacture and exports intermediates for APIs toPharmaceutical sector would
clients in European countries. Indian companies* potentially disrupt the supply of intermediates for
consider intermediates for APIs as a huge market. AsAPIs
intermediates for APIs are not classified as medicinal* push up drug prices.