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Post-Pandemic Resilience And Pharmaceutical Logistics

WDSrx Quality Assurance team for reviews regulatory guidelines for post-pandemic resilience
WDSrx expands logistics services for expected increased domestic pharmaceutical manufacturing to improve pandemic resilience.

 

Business disruption from the Coronavirus pandemic exposes a weakness in the United States pharmaceutical supply chain. United States government officials are currently working on creating new proposals and finding potential solutions for post-pandemic resilience.

Before the outbreak of the virus, the United States relied heavily on other countries for manufacturing. Approximately 72% of all pharmaceutical ingredients were supplied overseas, specifically, 13% in China. This is problematic because the virus originated in China and now places the U.S. at risk by default due to their exports. Normally, the pharmaceutical supply chain begins in China, where active pharmaceutical ingredients are developed, then flows to India for manufacturing, then finally on to the U.S. for consumption. There are powerful incentives to produce these ingredients overseas, such as a direct cost advantage. For example, the production of goods in China costs seven times less than in the United States, making the switch that much more difficult.

“I think it is probably too costly and burdensome to reverse the course we are on to move pharmaceutical manufacturing to domestic-only suppliers, but I do think that a combination of government officials and industry leaders coming together in partnership could help make it easier to be better prepared. Moving business operations to the United States can allow for better safety monitoring by the DEA and FDA.”

– Scott Cohon, Director of Sales and Trade Relations, WDPrx

Due to the global lockdown, the U.S. has since begun to look inward for manufacturing needs. As time progresses, there may be an increase in American production and domestic resourcing. Tax cuts are one way to help initiate American manufacturing at lower cost. The focus is on reducing dependency on international locations and starting to operate within U.S. borders. While the world may not ever be completely the same, there is still necessary action that needs to be taken in order to restore efficient pharmaceutical production and manufacturing capabilities moving forward.

For instance, the United States can expand opportunities by manufacturing Active Pharmaceutical Ingredients (API) in this country. This will give Americans greater control over medications and facilities of distribution. Pharmaceutical logistics companies including WDSrx are expanding capabilities to meet this new business opportunity and respond to the crisis by supporting financial and economic recovery in the pharmaceutical industry.

For further information contact Larry Hotz, (561) 998-3885 x304 or lhotz@wdsrx.com

Are any Controlled Substances (CII) included in your return? If so, please press "Yes" and complete the DEA 222 Request Form. You can also contact Jason Solomon at jsolomon@wdsrx.com or (561) 998-3885 x316.