Supply chains will become more local in the pharma industry: healthcare CEO


Drug supply chains may become less global as a result of the pandemic, according to the chief executive of a pharmaceutical manufacturer. 

Martin Meeson, CEO of Fujifilm Diosynth Biotechnologies, told CNBC’s “Squawk Box Europe” that drug companies were working to make sure people had access to medicine.

“I think there might be a slightly more local focus as we move forward, maybe just a little bit of a lengthening of some those supply chains, but I think that the whole of the sector has worked really well to make sure that those medicines are continuing to flow to the people and the patients that need them,” Meeson said on Monday.

At the start of the pandemic some experts warned of a temporary drug shortage in the U.S.

Drug supply chains are often global, with China being the largest supplier of active pharmaceutical ingredients around the world. Meanwhile, India provides around 40% to 50% of all generic drugs in the U.S., according to B&K Securities analyst Rohit Bhat.

Meeson emphasized the need for collaboration between parties involved in the production of drugs, such as universities “doing the discovery work” and manufacturers who can produce medicine at scale.

“We’ve got to keep working on this as we go forward as it’s very hard when you’re not … in a pandemic, to think about (being in) one,” he said.

More from Our New Future:

Companies will have to ‘seduce’ staff to go back to the office, real estate CEO says

Lego CEO says toymaker’s digital future is a 10-year journey

E-commerce experts on how the industry can capitalize from a coronavirus-led boom in online sales

“I know that many of the countries are making sure that they’ve got their own … local manufacturing and technical capabilities online; we’re working very closely with the governments across the world to be in a position to support that as we go forward.”

Fujifilm Diosynth Biotechnologies is working with developer Novavax to manufacture a Covid-19 vaccine. In August, the U.K. government signed a deal with Novavax to buy 60 million doses of the potential vaccine, known as NVX-CoV2373, which is currently undergoing clinical trials. The U.S. government agreed to pay Novavax $1.6 billion to develop and manufacture the vaccine in July, as part of its Operation Warp Speed initiative.

The Fujifilm business is best known for film and photography products but has diversified in recent years. In 2019, it made almost $5 billion in revenue from its healthcare business, equating to 22% of the wider group’s turnover, Meeson said.

—CNBC’s Julianna Tatelbaum contributed to this report.



Source link

Discover

Sponsor

Latest

Airlines, cruise lines fall as Trump diagnosis raises fears of second wave, slower reopening

U.S. President Donald Trump approaches reporters as he departs on campaign travel to Minnesota from the South Lawn at the White House in...

Trump loses appeal of Pennsylvania election case

President Donald TrumpCarlos Barria | ReutersA federal appeals court on Friday rejected an attempt from President Donald Trump's reelection campaign to keep alive...

IndyCar delays new hybrid engine until 2023

INDIANAPOLIS — The IndyCar Series will continue running the same engines each of the next two seasons. It also will be working with...

Most and least popular car colors ranked

It takes nothing more than a glance at a busy parking lot or a quick scroll through a handful of online car configurators...