Czech and Other Drug Manufacturers Sue EU Court of Justice Over Directive

Prague – A group of nine Czech pharmaceutical companies has taken legal action against the European Union Court of Justice regarding the new waste directive. The Czech Association of Pharmaceutical Companies (ČAFF) made this announcement in a blank” rel=”noreferrer noopener”>press release today. Under the directive, pharmaceutical and cosmetic companies are now required to contribute financially to wastewater treatment efforts. Zentiva, one of the companies involved, stated in its own blank” rel=”noreferrer noopener”>press release that increased production costs could render the manufacturing of several low-cost medications economically unfeasible. The association estimates these costs could amount to tens of billions of Czech crowns.

“We are in favor of the Green Deal and the goals set by the wastewater treatment directive, but the current implementation plan is unacceptable,” said Zentiva’s CEO Steffen Saltofte today. “This directive imposes a staggering additional tax, which would disproportionately affect the generic pharmaceuticals sector. We cannot bear this financial burden while operating within such a heavily regulated industry,” he added. According to Boris Sananes, the General Manager of Zentiva in the Czech Republic, the directive, as it stands, may drive many products out of the market due to unsustainable economics.

The directive follows the principle that the polluter should pay for the treatment of water, mandating that the pharmaceutical and cosmetic sectors finance new treatment processes at urban wastewater treatment facilities to eliminate micropollutants. These minuscule substances make their way into water systems from consumer products, are excreted by the body, and ultimately reach wastewater treatment plants via sewage.

“We estimate that the investment required to implement advanced treatment processes in the Czech Republic will be in the tens of billions of crowns. Alongside the initial costs, ongoing operational expenses will also be incurred by the industry,” noted Filip Vrubel, Executive Director of ČAFF. In light of these concerns, the companies are urging member states to reassess the potential implications of the directive. Alongside Zentiva, other Czech manufacturers including Accord, Adamed, Fresenius Kabi, Polpharma, Sandoz, Stada, Teva, and Viatris have joined the lawsuit. (March 10)