Biopharma Supply Chains and the Impact of COVID-19
The supply chain is a critical function in the highly regulated biopharma industry. Prior to the pandemic, there was a tendency to operate slowly and reactively due to the risks associated with drug distribution. However, in March 2020, the industry's standard practices were no longer sufficient.
Challenges Faced by the Biopharma Industry
As COVID-19 spread, upstream partners faced shortages of key ingredients and active pharmaceutical ingredients (APIs), while downstream supply chains and their commercial development teams struggled with restricted access to healthcare provider offices.
Additionally, research and development teams had to pivot towards remote clinical trials, a concept that had shown promise but was slow to gain widespread adoption.
Over-Reliance on Foreign APIs
One of the earliest supply chain issues revealed during the pandemic was the U.S.'s heavy reliance on APIs produced in other countries. According to the FDA's Center for Drug Evaluation and Research, over 70% of API manufacturers were based outside the U.S., with major sources in the EU, India, and China.
Go Time for Digital Enablers
The pandemic also pushed supply chain providers to enhance their tracking and transparency capabilities, making it an ideal time for the implementation of track-and-trace technologies and IoT solutions. This aligns with the 2023 deadline for Phase II of the Drug Supply Chain Security Act (DSCSA), which requires full unit-level traceability within the entire pharmaceutical supply chain.
Telemedicine and Supply Chain Adaptation
The shift towards telemedicine, driven by the pandemic, set the stage for new care delivery models, such as home-based healthcare and same-day prescription deliveries. This rapid adoption of digital healthcare created new workflows and opportunities for providers and patients alike.
Strengthening Supply Chains Post-COVID
Today, vaccines are more accessible worldwide, and new treatments for COVID-19 are in development. While the pandemic exposed weaknesses in the biopharma supply chain, the industry has rebounded, becoming more resilient and prepared for future crises.
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