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Pharma Tech Outlook | Thursday, July 29, 2021
To avoid supply shortages in the case of a future pandemic, biopharmaceutical firms prioritize more collaborative partnerships across the supply chain and improve crisis response plans.
FREMONT, CA: Despite prolonged shutdowns of several chemical and pharmaceutical production centers in early February and a gradual return to production once lockdowns were lifted and facilities could restart, the pharmaceutical supply chain has been confirmed to be relatively resilient during the first few months of the pandemic. While there were challenges, most of them originated from local procurement constraints instead of a lack of access to critical raw materials, intermediates, or active pharmaceutical ingredients (APIs) from distant vendors.
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Many businesses reacted quickly, putting safety rules and devising solutions that allowed operators to stay at work or return after a two-week quarantine. Due to the critical nature of these processes, shutdowns to produce life-saving drugs were restricted. Several businesses also have substantial product stocks to ensure continuous delivery.
The majority of operational and personnel issues faced by biopharmaceutical companies have arisen due to increasing activity rather than facility closures. Despite the necessity to modify onsite staff management and the relocation of non-essential people working remotely, businesses have continued to operate. Business strategies haven't changed, and most companies anticipate continuing with long-term capital investment and merger or acquisition plans. Generally, many suppliers see revenue increase, which they hope to continue.
Glocalization is Similar to Localization
The epidemic had hastened the glocalization movement, which encouraged an increase in local production in several nations before COVID-19 emerged. Large, international pharmaceutical corporations have set up production facilities in various geographic regions, either directly or through partnerships with local businesses or contract service providers. Meanwhile, domestic producers have expanded their position in most emerging areas.
The growing outsourcing to contract development and manufacturing organizations (CDMOs) and contract research organizations (CROs), the introduction of modular manufacturing solutions, and the high popularity of flow chemistry or continuous processing have all aided glocalization in the pharmaceutical industry.
Outsourcing gives access to specialized technologies and might help in saving money by increasing efficiency and productivity. It is a core business approach for small or emerging businesses that frequently use a virtual manufacturing model. Outsourcing allows the drug developers to have a presence in countries where local production is required.
CDMOs and CROs with global networks provide dual or multiple sourcing solutions. To address regulatory requirements for LPP, modular and flexible manufacturing solutions allow the replication of small production facilities in many nations. Meanwhile, sophisticated manufacturing technologies paired with continuous manufacturing solutions and highly advanced cloud computing and automation systems allow for cost-competitive in-country medication production.
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