Corona Virus (Covid-19) has almost impacted every industry, causing deep loss in global economy. Pharma industry is no exception. In this blog let us understand the impact on the pharmaceutical industries.
1.Cost of Drugs and Raw materials.
The impact Covid-19 has formed in China and the lockdown in India, United States, and other countries, further increases the chances of shoot up in the cost of raw materials and drugs. 13% of the brand and generic manufacturers are based out of China and according to the FDA, as of 2018, 24% of medicines and 31% of medical ingredients were imported from India.
Example
The cost of paracetmols tablets and vitamin tablets have increased nearly 40-50%
2.Reshaping the pharmaceutical supply chain.
Woodcock, director of the US Food and Drug Administration’s Center the EFCG delegates spoke of the need to safeguard the world’s supply of medicines from the liabilities inherent in relying on any one region for a significant proportion of essential raw materials and APIs. The COVID-19 pandemic did not seriously impede the production and shipment of pharmaceuticals in the first quarter of 2020 later on it increased by China dominates the world’s supply of active pharmaceutical ingredients and their chemical raw materials.
3. There are two types of drugs.
1.Brand Name Drugs
These are products protected with a reliable supply chain and profitable to the manufacturers.
2.generic drugs.
The profit for these types of drugs is very marginal and the supply chain is lean. The API plant for these are often overseas with India and China dominating the API market. According to a recent survey, emergency care, anesthesia care, and pain management drugs are the drugs which mostly get affected due to shortage.
The current situation might cause a shortage and increase in demands of certain medications such as Hydroxychloroquine and Chloroquine, which are most talked about during these pandemic times.
It is believed that the shortage might not occur for now as companies have stocks at least for the next 5 months.
3.FDA Policies:-
The Covid impact, demand for drugs and the lockdown in various countries may force the FDA to allow relaxation in a few areas
The review process of Generic medicine is lengthy, the demand and shortage created may also force minor changes
FDA might also rethink the number of inspections on the overseas manufacturing plants.
4.Digital Health:
Digital health might be the next big thing as telemedicine / video consultations, health-related videos and apps are gaining popularity.
Investment in online portals that help doctor-patient interaction will increase.
Conclusion: To control the drug shortages that occur often companies will reassess their strategies on the primary and secondary market for manufacturing.
lets thrive now 