The EU reached agreement on the Critical Medicines Act, aiming to reduce shortages by boosting European manufacturing capacity for drugs and active ingredients and enabling coordinated procurement across member states. The regulatory framework is framed as a post–COVID-19 supply chain resilience measure, with a focus on critical and orphan medicines. Under the pact, member states are expected to prioritize supply chain security and diversification over lowest-price procurement outcomes. The legislation also introduces “buy European” incentives and fast-track permitting and access to EU funding for manufacturing facility building and modernization. The policy is likely to affect how companies invest in European production networks, particularly for high-risk-to-supply products and APIs with limited supplier redundancy. For biotech and pharma, the agreement signals a more active EU role in supply planning and procurement strategy—potentially creating additional commercial demand for manufacturers that can scale within defined timelines and quality systems.