Executive Summary
The MHRA (Medicines and Healthcare products Regulatory Agency) held a public consultation on proposed amendments to its statutory fees, to ensure ongoing cost recovery. The consultation ran from August 29, 2024, to October 24, 2024. The majority of respondents (including stakeholders, from UK Approved Bodies, Trade Associations, Manufactures and the public) disagreed with the new medical devices registration fee, hence the MHRA have decided to proceed with the wider fees uplift and continue exploring options for this fee. The implementation date for the proposed changes to the wider fees uplift is early Q1 2025/26.
Introduction
The MHRA regulates medicines, medical devices, and blood components for transfusion in the UK. It operates on a full cost-recovery basis, ensuring financial sustainability and service delivery. Fees are updated regularly to reflect the cost of regulatory activities, including staff costs and corporate overheads. The MHRA, as a department of the UK government, need to be self-sustaining financially. Any activity they perform, and they are critical to the monitoring of medicines, medical devices and IVDs on the UK market, needs to be paid for by cost recovery initiatives, such as those summarised in the consultation document.
Evaluation of Responses
The document evaluates responses to the five proposals:
- Proposal 1: Increase statutory fees to ensure continued cost recovery. Most respondents did not agree, citing high costs and impact on SMEs, particularly in the case of the new proposed medical devices registration fee. The MHRA plans to proceed with the wider fees uplift but did refer to existing payment easements for small companies and payment waivers for SMEs for certain fees. However, this does not apply to medical devices or IVDs.
- Proposal 2: Amend the Medical Device Registration fee to include post-market work costs. Most respondents disagreed, citing financial burden on businesses, especially SMEs. The MHRA will continue exploring options for this fee and in the meantime, the existing one-off medical devices registration fee will remain but get the indexation increase being applied to all other existing fees (i.e. raising it from £240 to £261).
- Proposal 3: Create a new service for regulatory advice meetings for medical devices. Most respondents agreed, but requested more details on scope, format, and timelines. Questions were also raised with regards to the MHRA’s advice versus that of Notified/Approved Bodies, and the risks if advice was contradictory. The MHRA plans to proceed with this proposal.
- Proposal 4: Amend fee models for existing services and remove obsolete fees. Most respondents did not have an opinion but agreed in principle and requested more information be provided. The MHRA plans to proceed with this proposal.
- Proposal 5: Update the legal definition of a “standard variation” application for homeopathic products. Most respondents did not have an opinion, and the MHRA plans to proceed with this proposal.
Unintended Impacts on Protected Characteristics
The MHRA assessed the proposals for potential unintended discrimination. Most respondents did not have an opinion, but some raised concerns about the impact on product availability for rare conditions and minority groups. The MHRA believes the risk of unintended discrimination is low.
The implementation of this proposal will also see an increase to UK Approved Body fees, which will increase the financial burden on anyone who potentially uses the international recognition route or UKCA marking for classes B, C and D.
The biggest challenge for IVD manufacturers was the proposal to change how fees were applied for device registrations (proposal 2). In the consultation, a change of fees from £240 (one-off fee) to £210 per GMDN code registration (annually) was originally proposed. This would substantially increase the year on year costs of maintaining IVDs on the UK market (often at an increase of up to 5,000%) Whist the increase continued to be considered, the existing one-off medical devices registration fee will remain but get the indexation increase being applied to all other existing fees (i.e. raising it from £240 to £261) will occur later this year (exact date unconfirmed).
Closing thoughts
In summary, we understand that cost have to be recovered for the services the MHRA provide, and in reality, the fees for the UK are lower than many key regulatory markets (e.g. USA). However, in an aid to ensuring the UK continues to have early access to world leading and innovative products, the UK needs to be shaped into an attractive destination for IVD manufacturers in the short term. A substantial increase in medical devices fees, disproportionate to market size, would not support this message.
We will continue to engage with our customers on the outcome from the consultation and potential impacts of this change, as well as continue to engage with BIVDA, our trade association, to work with the MHRA to find a positive way forward.
IVDeology provides expert regulatory consultancy for anyone taking advantage of the UK’s current regulatory pathway, or planning for UKCA transition. We can help you build your regulatory strategy to consider the impact of UK international recognition, and support non-UK manufacturers place product on market utilising our UKRP service.
Book a call with us to discuss your regulatory challenges or questions and see how IVDeology can help you.