Coronavirus and Pharma Supply Chains – COVID-19 Impacts
Pharma’s complicated global supply chain is put under strain due to the novel coronavirus. However, analysts just cannot be sure as to how far the supplies could be affected.
Without much information, it is hard to tell how pharma supply chains are affected by COVID-19, but why? One reason is that we are lacking transparency. Pharma watchers who would like to diagnose the growing impact of COVID-19 on individual companies find it difficult as a dearth of information makes their work hard, according to a note to investors by SVB Leerink analyst Ami Fadia.
Around the industry, the firm scouted for feedback on manufacturing and drug supplies, and a major role in their responses is by China. Branded and generic drugmakers are keeping a close eye given that the country plays a large role in manufacturing active pharmaceutical ingredients (API).
Raw materials and APIs manufactured in China are heavily relied upon by generics makers in particular. “Watching the exposure to manufacturing sites across the globe is important with the coronavirus affecting globally,” Fadia wrote.
However, a long-lasting crisis could be easier to weather for branded drugmakers, especially with a slew of drugmakerspointing out growing stockpiles in case of a lockdown.
Even with none of Amarin’s manufacturing house in China, Amarin said it was working with a “significant stockpile” of its fish-oil derivative Vascepa on Sunday. It said that until at least March 30, its field sales force is been barred from “face-to-face” interactions.
For about 30 weeks or about seven and a half months, Amarin indicated its stockpile would last.
To Fadia’s team, other drugmakers including Exparel, Jazz Pharmaceuticals, and Xeris, indicated that in the event of further disruption, they had set aside stockpiles that could last between four to five months and that they had limited exposure to Chinese supply.
Prescription tracking services is another area where the analysts are paying close attention. Drug pricing in the coming months could be affected by the unusual decreases or increases in scripts for drugs, and Fadia’s team is on the lookout on this.
Coronavirus and Pharma Supply Chains – Source