Supply chain & logistics
our contracts anyway within the NHS. Trading with multiple wholesalers allows you the luxury of having variety and choice.” That choice prior to Covid, however, was heavily dependent on supply chains linked to China and India, the sector’s two powerhouse manufacturing bases. “That has come back to bite us – and that overreliance really should stop,” says Breen. “When I was asked about the impact of the pandemic really early doors, I said we would have no supply chains left if we did not focus on protecting the people. The virus was affecting people, and people would not be able to work in the factories or drive the trucks. And that’s exactly what happened.” In China, factories closed as cities locked down; in India, the Serum Institute muddled through, taking on additional contracts amid rumblings of closures and export bans (the Indian government ultimately stopped exports of paracetamol and remdesivir, among other medications). New manufacturers stepped in to engage with the pharmaceutical supply chain for the first time. Perfume and alcohol producers switched to hand sanitiser, avionics and auto manufacturers turned their attention to ventilators.
While not all this diversification will remain profitable once economies normalise, Breen does see Covid as a catalyst for a return to local manufacturing in order to minimise risk. She cites paracetamol and other generics as examples. “If a generic company can be making all these
World Pharmaceutical Frontiers /
www.worldpharmaceuticals.net
products in another part of the world, why can’t we start making those products in the UK? Wherever we don’t have the talent, the skills, the manufacturing capability, or the technology to support it, we buy in. I think there is definitely now more focus on local supply chains and investing in UK pharmaceutical manufacturing – and we’re not the only ones doing it. It’s about finding where the weak spots are, working out what makes us vulnerable and trying to mitigate against that.”
Breen expects that the pandemic will act as a catalyst for a return to local supply chains.
“Moving forward, we’re going to see that the investment isn’t just in a company and a vaccine, but also in the supplier, the talent management, the education of the engineers and biologists.”
Local vaccines manufacturing capacity will have long-term ramifications in terms of shaping supply chains. “I think, moving forward, we’re going to see that the investment isn’t just in a company and a vaccine, but also in the supplier, the talent management, the education of the engineers and biologists,” Breen says. Targeted investments in these areas, she adds, are what will allow us to “hit the ground running” in future pandemics. “I’m hoping that is what we get out of this pandemic – there are definitely things that we can learn. We need to really cash in and capitalise on that.” ●
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www.shutterstock.com
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