How about the supply chain of Pharma in Covid period?

It is reported by the FDA of US that 70% of its APIs are from China, EU and India during Covid period. Shortages, or at least a level of disruption, we’re inevitable as the virus spread, disruption will be inevitable should there be any future global economic or social shock.

Raw materials held at site, in the supply chain and forward purchasing of materials all support continuity of supply, for periods of up to six months.

Short-term export bans by some countries could have had wider implications, however these were lifted reasonably quickly, allowing the supply chain to resume.

The supply side of US markets:

The US is the largest single pharmaceutical market, accounting for approximately $485 billion, or 38%, of the global pharmaceutical market of $1.205 trillion in 2018, according to information from the IQVIA Institute for Human Data Science.

As of August 2019, 28% of the manufacturing facilities making APIs for US markets were based in the US. The remaining 72% of the API manufacturers supplying the US market were outside the US, which includes 13% in China (see Figure 1&Figure 2). 

While in reality drug shortages due to COVID-19 have been limited, the inherent structural challenges that drive the way in which the sector operates remain:

• Governments have driven the generic industry’s motivation and short-term focus on lowering costs.

• In the UK, generic tendering has a singular focus, lowest costs wins, ability to supply is not a point of consideration. If it were, the level of shortages seen outside of COVID-19, in the normal supply chain, would not exist.

• Manufacturing has been forced to adopt the same, lowest cost, high volume mantra, leading to dominance and low-cost supply from certain areas of the globe.

• Regulators and governments intervene in the supply chain in challenging times with a view to support. Intermittent intervention, of this type, often causes greater challenges, rather than driving the outcomes intended. It can be a very blunt instrument.

We believe that the only way in which you can create flexibility and agility across the supply chain is working with all partners to identify the best route forward.

Maxmedchem, which is one of the manufacturers of APIs and Pharmaceutical intermediates, has been exporting APIs products for over fifteen years. And the main markets are south American, Japan, Korea and Australia, UK so far.

The CEO of Maxmedchem Corporation, John, said that he’ll try his best to serve and make greater contributions to the supply chain of the global pharma in the coming years.

Email us : info@maxmedchem.com

Reference : https://www.dcatvci.org/