Supply Chain Crunch Meets Olympics Shutdown: China, India Drug Makers Embrace For Perfect Storm

Lengthy factory shutdown to disrupt supply chains

To ensure the Beijing Winter Olympics is a smooth affair, the Chinese government has ordered partial or complete halts in industrial production in some provinces from late November until mid-March, disrupting an already fragile global pharma active ingredient supply chain. The emergence of the Omicron coronavirus variant is just adding to the complexities.

turbulence
Supply Chain Storm Ahead For Pharma? • Source: Alamy

China’s clampdown on polluting industrial units ahead of the Beijing Winter Olympics is raising the prices of active pharmaceutical ingredients (APIs) and key starting materials (KSMs), which along with concerns over the Omicron SARS-CoV-2 variant, could signal a perfect storm building for the pharma industry in the days and months ahead.

China’s moves are expected to disrupt a large part of the nation’s production, partially initially but then moving to a complete halt in some provinces thereafter.

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