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Pharma Tech Outlook | Wednesday, March 31, 2021
The pandemic has increased the speed of glocalization movement that was already boosting the local pharmaceutical production in several countries before COVID19.
FREMONT, CA : Despite prolonged shutdowns of several chemical and pharmaceutical production facilities and a gradual return to production once lockdowns were lifted and plants could restart, the pharmaceutical supply chain has proved to be resilient, particularly for the first few months of the pandemic. While there were obstacles, most of them resulted from local procurement problems rather than a lack of access to vital raw materials, intermediates, or active pharmaceutical ingredients (APIs) from distant suppliers.
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Many businesses reacted quickly, applying safety precautions and developing solutions that allowed operators to stay at work or return after a two-week quarantine. Due to the vital nature of these operations, shutdowns for the development of life-saving medicines were shortened. Most businesses also had ample commodity stockpiles to ensure a continuous supply.
In recent years, several contract manufacturers and their customers have focused on integrating pharmaceutical supply chains and establishing dual sourcing for crucial materials. Most of the organizational and staffing challenges faced by biopharmaceutical companies have occurred due to increased production rather than plant closures.
Glocalization Equals Localization
The pandemic had intensified the glocalization trend, which was already driving an increase in local production in many countries before COVID-19. Giant, multinational pharmaceutical companies have set up manufacturing facilities in several locations, either directly or through partnerships with local businesses or contract service providers. Meanwhile, domestic manufacturers have extended their reach in most developing markets.
As per the United Nations Industrial Development Organization, local pharmaceutical production (LPP) will help deprived areas to obtain access to high-quality medicines, minimize dependency on external donations, and improve regulation of counterfeit drug products entering developing economies. When local manufacturers produce products for local communities, the quality is better controlled by regulators, and the local economy benefits from the income produced by local workers.
The increased outsourcing to contract development and manufacturing organizations (CDMOs), contract research organizations (CROs), the introduction of modular manufacturing solutions, and the growing adoption of flow chemistry or continuous processing have encouraged glocalization in the pharmaceutical industry.
Outsourcing gives pharma companies access to specialized technology that can help them save money but increase production and productivity. It is a fundamental business strategy for small or emerging companies who often use a virtual manufacturing model. Outsourcing helps the drug developers to create a presence in countries where local manufacturing is required. CDMOs/CROs for global networks have dual or multiple sourcing options. To meet government requirements for LPP, modular and flexible manufacturing systems allow small production facilities in various countries.
Meanwhile, continuous manufacturing solutions combined with state-of-the-art cloud computing and automation systems create opportunities for cost-competitive in-country drug production using advanced manufacturing technologies.
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