Jordi Robinson, Chief Commercial Officer, Navin Molecular
The impact of the COVID-19 pandemic on the pharmaceutical industry led almost every company to scrutinize, evaluate, and take stock of their supply chains. In doing so, it became evident that there was an overreliance on outsourcing to overseas suppliers, with China especially being seen as dominant within the market for both final drugs and strategically important starting materials.
To reduce the potential of disruption, the modern supply chain model needs to have true multiple sourcing options from different companies and geographic locations. Supply chain managers must balance all the factors, such as delivery time, quality, and cost, with time being crucial to meet the ever-increasing demand to advance programs to the clinic and through to commercial launch as quickly as possible. COVID-19 saw how rapidly the industry can adapt and accelerate projects under extreme conditions, and as a consequence, this speed is now seen as the norm, rather than the anticipated, extended timeframes previously experienced.
To minimize China’s influence of the market, many big companies now employ a ‘China +1’ approach, whereby at least one of the material suppliers has to be non-Chinese. This has led to an increased preference for providers in other low cost economies, such as India, and, in some cases, the re-shoring of projects to Europe and the United States. A requirement for manufacturing partners to similarly be “China independent” in respect of their own supply chains is becoming an important factor in the selection of vendors, to ensure robust, secure provision of materials.
Chris Neasham, Vice President, Global Procurement, Sterling Pharma Solutions
The COVID-19 pandemic exposed potential vulnerabilities in pharmaceutical supply chains, which have prompted a multitude of changes across the value chain. At Sterling, we were able to continue manufacturing throughout the pandemic because of the resilience of our supply chain, and this is where our focus continues to lie.
For CDMOs, maintaining a stable supply chain has always been important. To minimize potential issues, it is crucial to accurately forecast demand, have full supply chain visibility, and continuously collate insights to predict future material requirements and manage supply chain bottlenecks. Customers now require manufacturers to supply greater detail on supply chain management, making this is a dynamic and ongoing process.
What is important for manufacturers is to recognize their position and role within the wider supply chain, and be aware of not just customers’ needs but the issues that impact and govern the wider market. Sterling’s business model has evolved considerably since the pandemic: we have purposefully built an integrated global network, so we can provide customers with realistic and flexible options in terms of geography, not only for commercial and secondary supply, but also in development strategies that span a variety of disciplines.
Selwyn Lustman, Senior Vice President, Global Sourcing and Procurement, LGM Pharma
The pandemic brought to light significant vulnerabilities in the pharmaceutical supply chain, and it’s clear that traditional sourcing strategies are not enough. Initially, the crisis led to shortages in essential medications, highlighting the risks of overreliance on specific regions for APIs. Geopolitical tensions have further complicated this landscape. For instance, recent U.S. policies have imposed restrictions on certain Chinese biotechnology firms, prompting companies to diversify their supply chains. Additionally, tariffs on Chinese goods make APIs from China less competitive, encouraging a shift toward suppliers in Europe and India.
To build resilience in this post-pandemic environment, companies are adopting several strategies:
Diversification of suppliers: Moving away from single-source dependencies, seeking multiple suppliers across different regions to mitigate risks associated with geopolitical tensions and supply disruptions.
Technological integration: The adoption of digital tools and AI is enhancing supply chain visibility and allowing for better demand forecasting and inventory management.
Onshoring production: A growing trend to bring manufacturing closer to primary markets.
Regulatory compliance and quality assurance: With increased scrutiny from agencies like the FDA, ensuring that suppliers meet stringent quality standards has become paramount.
By implementing these strategies, the pharmaceutical industry is building a more resilient and adaptable supply chain — one that prioritizes long-term planning, proactive risk management, and the agility to respond to future disruptions.
Mark Przekop, Chief Operating Officer, Nucleus RadioPharma
Radiopharmaceuticals are significantly expanding as their utilization extends beyond prostate cancer into other malignancies, such as breast and pancreatic cancer. While the demand for radiopharmaceuticals continues to grow, their supply chain and manufacture remain a challenge, attributable to the short half-life of these therapies, complex radioactive handling protocols, and the requirement for specialized equipment and facilities. Therefore, contract development and manufacturing organizations (CDMOs) like Nucleus RadioPharma developed strategies to address these logistical production challenges to improve the scalability of manufacturing and ensure treatments are geographically closer to patients across the United States. Our two new facilities in Mesa, Arizona, and in Spring House, Pennsylvania, also allow for international shipping to Europe and Asia, respectively, complementing our initial site in Rochester, Minnesota.
Pharma companies and clinical trial sponsors are utilizing CDMOs that offer strategically located production facilities that can help streamline processes so that radiopharmaceuticals can be rapidly and safely transported to a study site or hospital in just a few hours. Reliable manufacturing capabilities that can deliver highly sensitive radiopharmaceuticals will minimize supply chain disruption and shorten turnaround times, and at the same time accelerate clinical timelines and time-to-market for these targeted, precision medicines.
Yongkwan Ma, Associate Director of Chemical Procurement, Samsung Biologics
Amid uncertainties of disease progression and consistent demand for blockbuster drugs, securing supply chain resilience, especially of raw materials, before new demand hits the market is now a prerequisite to maintaining business viability and, more importantly, ensuring patient access to timely, lifesaving treatments.
In light of raw materials sourcing, diversification in supplier and manufacturing processes is a highly recommended strategy to prepare for uncertainty. Since the COVID-19 pandemic, the biopharmaceutical industry has been scrambling to find ways to mitigate supply chain constraints, particularly those related to multi-layered sourcing. Diversifying sourcing channels creates opportunities for non-major, well-funded suppliers to enter the raw material market and compete with mainstream suppliers. This competition can result in more cost-effective raw material prices, benefiting biopharmaceutical companies and patients.
Therefore, biotechnology and pharmaceutical companies can achieve resilience in the supply chain by distributing their demand across multiple CDMOs. This provides the companies with a backup option if another variant of COVID-19 emerges, thereby improving their readiness and ability to adapt to rapidly changing circumstances.
Embracing supplier diversification is necessary for the stability of the industry and can also lead to positive outcomes, such as driving innovation and fostering greater affordability and accessibility for vital biologics.
Arvind Singh, Vice President and Head of Global Supply Chain, SK pharmteco
The pandemic exposed vulnerabilities in the pharmaceutical supply chain, from raw material shortages to manufacturing shutdowns and logistical disruptions. In response, the industry has prioritized resilience through diversification, digitalization, and regionalization.
At SK pharmteco, we’ve adopted a multifaceted approach to ensure supply chain agility and reliability. We’re expanding our supplier network to reduce dependency on single sources, investing in digital technologies for enhanced end-to-end visibility across the value chain, and strengthening regional manufacturing and supplier capabilities to mitigate geopolitical risks. Operational excellence (OE) is at the core of our strategy. We optimize processes through automation, lean manufacturing, and data-driven decision-making to improve efficiency and responsiveness.
Strategic partnerships and regulatory collaborations are also crucial in ensuring supply chain stability. By fostering timely and transparent communication across the value chain and proactively managing risks, we are well-positioned to support our clients and deliver uninterrupted lifesaving medicines in a post-COVID world.
Pierre-Alain Ruffieux, Ph.D., Chief Operating Officer, Cytiva
The COVID-19 pandemic exposed the vulnerabilities in our industry’s global supply chain. In response, the industry and governments added capacity to strengthen regional manufacturing operations. It met the need at the time; however, long term resiliency requires more than just capacity. Technologies and solutions being developed must provide drug developers with the speed and the flexibility to scale up and out when needed. We must pay close attention to our tier 2 and tier 3 suppliers. Flexible manufacturing platforms and digital solutions that enable data transfer will also be a vital for supply chain resiliency. Of course, this will also require a greater investment in a trained talent pool. Governments, universities, and the private sector need to build upon the collaborations they have today in order to support future demands.