COVID-19 pandemic has exposed weaknesses and sector faces new challenges driven by rising costs of production in China
The COVID-19 pandemic has exposed weaknesses in the complex supply chain for active pharmaceutical ingredients (APIs) and the sector needs to address the challenges of rising production costs in China, on which the sector is heavily reliant on supply, according to a panel of experts speaking at a live CPhI webinar on Monday.
The session ‘API Trend Outlook 2022’ chaired by Aurelio Arias, Engagement Manager, IQVIA explored how ingredients production and supply had been impacted by the COVID-19 pandemic and what future challenges the sector needs to address, particularly in the light of rising energy, labour and transportation costs and increased demand for cold chain solutions.
With China currently producing around 80% of APIs worldwide, initiatives to reshore API and intermediates production in Europe and the US to lessen reliance on Chinese supply will not come without issues, the panel said.
Maurizio Schiavazzi, Member of the Managing Committee, CPA Chemical Pharmaceutical generic Association said high reliance on China for APIs, intermediates and key starting materials supply had become particularly evident over the last two years, amid pandemic-fuelled shortages.
“The intermediate shortages are pushing Western companies to adopt reshoring initiatives,” he said. “However, there is a list of issues including planning investment, minimising the waster of hazardous chemicals, not to mention the long and bureaucratic procedure.”....[CPhI]