Recipharm on the impact of COVID-19 on API supply

The COVID-19 pandemic has impacted pharma in ways like never before. Not only is the industry at the forefront of the efforts to combat the virus, but it is subject to immense vulnerability, with the various lockdowns putting unprecedented pressure on operations and exposing the weakness of the world’s API supply chain.

CDMOs have been integral in retaining pharmaceutical manufacturing and capacity in recent years. As a result, they have a key part to play in future efforts to localize pharmaceutical production.

Calls for businesses to onshore their production raises some key questions for the industry as a whole. Who is willing to give up their low-cost supply? How will localisation impact the cost of the finished product, and how can we ensure adequate supply in each target market?

There are several reasons why it may be a good option for drug companies to relocate their supply chain and manufacturing. In Europe, they can enjoy access to highly skilled scientists, considerable funding, as well as tax reductions granted by government or European research institutions. However, there would need to be favourable conditions in order for this to take place.

In an article with Contract Pharma, our Executive Vice President – Strategy and Global Integration at Recipharm, Jean-François Hilaire discusses what it might take for businesses to relocate their API supply and what we might see in 2021. 

Click the link here to read the full article.