.png)
500 May 11, 2020
How Covid-19 is Affecting Pharma Supply Chain – Covid-19 first originated in China and now it has been causing great havoc all over the globe from the past few months. China is the major country that manufactures the majority of APIs for drugs all across the world and it has a major knocked on effect on India. Indian Pharma Companies were majorly relying on the APIs by China, but it has affected the total chain of Pharma products all across the country. Well, in this article we will be throwing lights on How Covid-19 is Affecting Pharma Supply Chain.
From the last few months, the whole world is suffering from coronavirus or COVID 19 is creating a fuss all across the world and people are into lockdown in their homes and are forced to close their business or work from home if possible. This has adversely affected the Pharma and the Derma Companies in India and in other countries as well. As the countries are continuing to struggle due to the challenges by COVID-19, it is also disturbing the supply chain of Indian Pharma Companies. There were a significant number of Pharma companies in India that used to import their raw materials in bulk from China and are witnessing a lockdown of over 2 months now.
Even before it was announced for a proper lockdown in several countries all over the world and the spread of Coronavirus across the world, there was a severe disturbance in China which was causing the effect on global trade flow. Many Pharma Companies across the world worked to make their supply chains leaner. The prominence had been on the minimization of costs and on-time deliveries. There have been vulnerabilities in the Pharma system brutally due to the COVID 19.
In India, there are certain industries such as the Pharma industry which is highly dependent on the import products from China. Thus, it has been under a significant risk as our major Pharmaceutical products and raw materials are being supplied by Chinese companies. Almost 70 percent of the Active Pharmaceutical Ingredients are being supplied by China into our Pharmaceutical Industry. There are other industries as well which as dependent on Chinese imports such as automobiles, chemicals and textiles, and renewal of the energy sector for solar panels. All the micro, small, medium Pharma enterprises are dependent on the imports of API by Chinese Companies. India took the imports of APIs from China and manufactured the highest range of Generic Medicines in the entire world. Thus, this would also stop as the supplies from China have been stopped and the Indian Pharma companies do not have enough APIs to manufacture the generic medicines. The Contract Development and Manufacturing Organization (CDMO) has noted the increasing demand for chloroquine phosphate drug which is used for treating malaria prophylaxis and rheumatoid arthritis. This has the antiviral effects which can be used as an option for curing Coronavirus as highlighted by the World Health Organisation.
The present outbreak of COVID-19 has given valuable lessons to the Pharma companies in India in particular. The lean supply chain strategies and the short term profit contribute to the Pharma supply chain Vulnerability. This Disease has taught the decision-makers in the corporate and Pharma industries to formulate future supply chain designs apart from cost, delivery, and the quality of the products. These Pharma companies should now also stress on the test for the chains on new performance measures, flexibility, and responsiveness. Pharma Companies would also look to expand the supply chains from a geographic perspective and also reduce the supply rick from the other country. The Pharma companies will also look for building a strong record to safeguard against the supply chain disturbance of the Pharma range due to COVID-19. Many Pharma Companies want their supply chain to work locally and would increase the investment in India’s local industries and give their help for an economic crisis. The government of India is promoting the domestic manufacturing of critical materials and Intermediates and Active Pharmaceutical Ingredients (APIs) for the Pharma companies. Moreover, the supply of chloroquine phosphate products is being secured and in the case of the sudden increase in the demand, new recommendations will be introduced later.
Thus, COVID-19 has made an urgent wake-up call for all the Pharmaceutical companies in India and in other countries as well. There is a need for developing our own local sourcing units and adapt some alternative strategies to reduce the dependency from the Chinese companies for Pharma APIs.
Welcome to Scot Derma Private Limited, a leading Skin Care pharma company in India. We are one of the top DERMA PCD Pharma Company in India with global locations and having our marketing office in India.
© 2019 SCOT DERMA PRIVATE LIMITED. All Rights Reserved.