COVID-19 exposes US reliance on China for pharmaceuticals and medical devices

[beijingwalker]

COVID-19 exposes US reliance on China for pharmaceuticals and medical devices

China is the largest and sometimes only global supplier for the active ingredient of some vital medications, say four experts.

19 Feb 2020 06:15AM

A scientist works at Zai Labo's drug development facility in Shanghai, China October 18, 2017. REUTERS/Adam Jourdan

COLLEGE STATION, Texas: As COVID-19 spreads rapidly around the globe, the international community is scrambling to keep up.

Scientists rush to develop a vaccine, policymakers debate the most effective containment methods, and healthcare systems strain to accommodate the growing number of sick and dying.

Though it may sound like a scene from the 2011 movie Contagion, it is actually an unfolding reality.

In the midst of all of this, a potential crisis simmers in the shadows: The global dependence on China for the production of pharmaceuticals and medical equipment.

CHINESE DOMINANCE IN THE PHARMACEUTICAL MARKET

Today, about 80 per cent of pharmaceuticals sold in the US are produced in China.

This number, while concerning, hides an even greater problem: China is the largest and sometimes only global supplier for the active ingredient of some vital medications.

The active ingredients for medicines that treat breast cancer and lung cancer and the antibiotic Vancomycin, which is a last resort antibiotic for some types of antimicrobial resistant infections, are made almost exclusively in China.

Additionally, China controls such a large market portion of heparin, a blood thinner used in open-heart surgery, kidney dialysis and blood transfusions that the US government was left with no choice but to continue buying from China even after a contamination scandal in 2007.

China is not only the dominant global supplier of pharmaceuticals, but it is also the largest supplier of medical devices in the US. These include things like MRI equipment, surgical gowns, and equipment that measures oxygen levels in the blood.

Supplies of these essential products have not yet been severely disrupted by the coronavirus, but if China is no longer will or able to supply them to the US, thousands of Americans could die.

LIMITED ALTERNATIVES

More concerning still are the limited options available to the US and the rest of the globe to make up the shortfall.

It could take years to develop the necessary infrastructure to reestablish US manufacturing capacities and obtain Food and Drug Administration licensure to overcome the loss of the Chinese supply.

When a disease reaches epidemic levels, the first obligation for leaders in any country is to protect their own people.

As this current crisis progresses, there may come a point when political leaders in China will face decisions on whether to prohibit the export of pharmaceuticals, medical devices and other vital medical components in order to treat or protect their own people.

Such acts would be the logical outcome of an escalating situation.

For the 2009 H1N1 pandemic response, for example, the US was pushed to the back of the queue for vaccine deliveries even though we had existing contracts with a major vaccine manufacturer located in another country. Those vaccine deliveries were delayed.

WILL COVID-19 DISRUPT GLOBAL PHARMACEUTICALS?

While a total loss of active ingredient imports from China might seem far-fetched, we believe the increasing scale of the outbreak moves it closer to the realm of possibility.

About six weeks into international recognition of the epidemic in China, there are already shortages of vital personal protective equipment in both China and the US. United Parcel Service (UPS) has transported more than 2 million masks and 11,000 gowns to Wuhan to help alleviate the shortage.

But what happens when everyone runs out of protective equipment?

Wuhan is a significant player in the biotechnology and pharmaceutical industry, with multiple pharmaceutical companies located in the city. How many of these factories have closed as a result of the pandemic, and when will those that have closed open back up?

Global supply chains could reach a crisis point if they are compromised because Hubei province, where Wuhan is located, is in quarantine and factories are shut down.

Additionally, Wuhan is the location of China’s first Biosafety Level (BSL) 4 laboratory, which was opened in 2017 to research SARS and other emerging diseases. It is the only lab in China that can safely handle the world’s most dangerous pathogens that pose a significant risk of transmission.

Infection, death and quarantine in Wuhan and the surrounding Hubei province is restricting the ability of all types of commerce in the region.

Meanwhile, the virus is already creating a significant supply chain imbalance within China.

That means those medical supply companies will be under pressure to keep any products produced within the country for protection of their own health care workers, laboratory personnel and the general public.

The regulatory apparatus to ensure that the Chinese manufactured pharmaceuticals being exported meet the highest standards of safety and quality control are weak or nonexistent, according to a US congressional report last year.

The pressure placed on supply chains by the outbreak could further exacerbate existing quality control challenges.

The virus has thus highlighted the US' reliance on China as a national security issue due to outsourcing manufacturing capabilities and inability to ensure quality control.

RECLAIM CONTROL OF THE MEDICAL SUPPLY CHAIN

As with all pandemics, the complexity of this outbreak demands international collaboration and transparency.

At the same time, US public health officials must acknowledge the country’s vulnerability due to its dependence on Chinese production of pharmaceuticals and medical equipment.

The US must develop a response plan for the inevitable shortages in the near-term and take necessary actions to reclaim control of its medical supply chain. Continuing to overlook this long-known vulnerability will only lead to catastrophe.

https://www.channelnewsasia.com/new...ina-us-medical-medicine-supply-chain-12441770

 

[beijingwalker]

China is not only the dominant global supplier of pharmaceuticals, but it is also the largest supplier of medical devices in the US. These include things like MRI equipment, surgical gowns, and equipment that measures oxygen levels in the blood.

Supplies of these essential products have not yet been severely disrupted by the coronavirus, but if China is no longer will or able to supply them to the US, thousands of Americans could die.

China felt great shortage of medical resources when coronavirus first hit and caught China off guard, all surgical masks were sold out even with the fact that China produces over 60% of the world total surgical masks.

Can't imagine what will become if this crisis hit other developing countries which do not have this vast and solid medical industry as China has.

 

[beijingwalker]

Coronavirus Exposed America's Heavy Reliance On China For Medicines

 

[FedererExpress]

Ugh!

 

[beijingwalker]

Coronavirus Spotlights India Drug Industry's Reliance on China
By Anjana Pasricha
February 27, 2020 07:29 AM

NEW DELHI - A spike in prices of pharmaceutical ingredients in the wake of the coronavirus outbreak in China is impacting Indian drugmakers and has raised concerns about the vulnerability of one of the world’s major producers and exporters of generic drugs to shortages.

The Indian drug industry imports nearly 70 per cent of raw pharmaceutical ingredients from China.

While big companies have said they have enough stock to last them for about two months, smaller manufacturers have been hit by price hikes.

“Paracetamol was Rs 275 (about $ 4) about one month or six weeks back. It has gone up to Rs. 450 ($ 6.3) a kilogram,” according to T. Srikrishna, the chief executive officer at Low Cost Standard Therapeutics, a not-for-profit generic drug manufacturer in Gujarat. “Anything which has got a link to China has been affected.”

Supply chain disruptions are also a cause of major worry. Amid efforts to limit the spread of the deadly coronavirus outbreak, factories in China have been impacted and supply lines affected. Hubei province, where the virus originated, is a production hub for pharmaceutical ingredients.

“Since half the world’s manufacturers are all relying on active ingredients coming from the Chinese manufacturers, there can be severe problems more downstream and later in the year specially when it comes to niche products that are manufactured at very few manufacturing sites in the world,” according to Jayasree Iyer, executive director at the Netherlands-based Access to Medicine Foundation, a non-profit organization that analyses the world's largest pharmaceutical companies.

Among the drugs that could be affected are antibiotics and vitamins, she said. India is one of the world’s main producers of affordable medicines.

While some stocks are being airlifted from China, drugmakers face uncertainty about when shipments will arrive, according to Deepnath Chowdhury, former president of the Indian Drug Manufacturers Association.

“Logistic problems are there,” he says. “Once sea shipments will start coming, then only things will be easier.”

He says fortunately most of the bigger drug companies had stocked up before the Chinese New Year as per usual practice.

However smaller drugmakers, who do not import directly but procure in smaller quantities from local distributors are grappling with higher costs. According to Rahul Soni of Overseas Healthcare in the northern city of Jalandhar, “My inventory is not going to last for long and that is what worries us today. Some things I am already buying at a premium of 40 to 50 per cent. ” The price of azithromycin, an antibiotic for example, he says has risen by 50 per cent since January.

India’s thriving pharmaceutical industry is the world’s third largest producer of drugs in terms of volume and a major exporter of generic drugs.

But as the coronavirus outbreak turns the spotlight on the reliance of India’s thriving drug industry on China, the Confederation of Indian Industry has recommended that the country needs to build manufacturing capacities to strengthen domestic production of active pharmaceutical ingredients.

Iyer says drug companies should explore dual sourcing and cut down dependence on manufacturers in one country.

Smaller drug makers meanwhile worry about keeping their production lines viable due to the rising prices of raw ingredients. Many of them make basic medicines needed for primary health care such as antibiotics and vitamins.

While the rising costs do not impact retail consumers because prices of essential medicines in India are regulated by the government, Srikrishna says smaller manufacturers will have to simply stop producing if it is not viable.

“If I cant afford to manufacture within that price limit, then I will stop manufacturing it. So shortages could come at a later stage. Now whatever is in the pipeline is being supplied,” he says.

The coronavirus outbreak has infected more than 75,000 people in about 40 countries around the world, most of them in China. The death toll has climbed to more than 2,700.

https://www.voanews.com/science-hea...potlights-india-drug-industrys-reliance-china

 

[Beast]

Coronavirus Spotlights India Drug Industry's Reliance on China
By Anjana Pasricha
February 27, 2020 07:29 AM

NEW DELHI - A spike in prices of pharmaceutical ingredients in the wake of the coronavirus outbreak in China is impacting Indian drugmakers and has raised concerns about the vulnerability of one of the world’s major producers and exporters of generic drugs to shortages.

The Indian drug industry imports nearly 70 per cent of raw pharmaceutical ingredients from China.

While big companies have said they have enough stock to last them for about two months, smaller manufacturers have been hit by price hikes.

“Paracetamol was Rs 275 (about $ 4) about one month or six weeks back. It has gone up to Rs. 450 ($ 6.3) a kilogram,” according to T. Srikrishna, the chief executive officer at Low Cost Standard Therapeutics, a not-for-profit generic drug manufacturer in Gujarat. “Anything which has got a link to China has been affected.”

Supply chain disruptions are also a cause of major worry. Amid efforts to limit the spread of the deadly coronavirus outbreak, factories in China have been impacted and supply lines affected. Hubei province, where the virus originated, is a production hub for pharmaceutical ingredients.

“Since half the world’s manufacturers are all relying on active ingredients coming from the Chinese manufacturers, there can be severe problems more downstream and later in the year specially when it comes to niche products that are manufactured at very few manufacturing sites in the world,” according to Jayasree Iyer, executive director at the Netherlands-based Access to Medicine Foundation, a non-profit organization that analyses the world's largest pharmaceutical companies.

Among the drugs that could be affected are antibiotics and vitamins, she said. India is one of the world’s main producers of affordable medicines.

While some stocks are being airlifted from China, drugmakers face uncertainty about when shipments will arrive, according to Deepnath Chowdhury, former president of the Indian Drug Manufacturers Association.

“Logistic problems are there,” he says. “Once sea shipments will start coming, then only things will be easier.”

He says fortunately most of the bigger drug companies had stocked up before the Chinese New Year as per usual practice.

However smaller drugmakers, who do not import directly but procure in smaller quantities from local distributors are grappling with higher costs. According to Rahul Soni of Overseas Healthcare in the northern city of Jalandhar, “My inventory is not going to last for long and that is what worries us today. Some things I am already buying at a premium of 40 to 50 per cent. ” The price of azithromycin, an antibiotic for example, he says has risen by 50 per cent since January.

India’s thriving pharmaceutical industry is the world’s third largest producer of drugs in terms of volume and a major exporter of generic drugs.

But as the coronavirus outbreak turns the spotlight on the reliance of India’s thriving drug industry on China, the Confederation of Indian Industry has recommended that the country needs to build manufacturing capacities to strengthen domestic production of active pharmaceutical ingredients.

Iyer says drug companies should explore dual sourcing and cut down dependence on manufacturers in one country.

Smaller drug makers meanwhile worry about keeping their production lines viable due to the rising prices of raw ingredients. Many of them make basic medicines needed for primary health care such as antibiotics and vitamins.

While the rising costs do not impact retail consumers because prices of essential medicines in India are regulated by the government, Srikrishna says smaller manufacturers will have to simply stop producing if it is not viable.

“If I cant afford to manufacture within that price limit, then I will stop manufacturing it. So shortages could come at a later stage. Now whatever is in the pipeline is being supplied,” he says.

The coronavirus outbreak has infected more than 75,000 people in about 40 countries around the world, most of them in China. The death toll has climbed to more than 2,700.

https://www.voanews.com/science-hea...potlights-india-drug-industrys-reliance-china

Material cost is very small portion of a medicine. bulk of the cost is loyalty. These drug maker are just not willing to lower their profit with increase of raw material.

 

[beijingwalker]

The World is Almost Out Of Medicine Because of China

 

[beijingwalker]

China Manufactures 95% Of The Medicines Used In The U.S.A.

JEFF KATZ
MARCH 13, 2020 - 2:00 PM

Sen. Marco Rubio (R-FL) said during a Senate hearing on Thursday that Chinese control of pharmaceutical and other medical manufacturing fields has "critically endangered" the United States' healthcare system and economy.

Rubio made the comments during a hearing of the Senate Committee on Small Business and Entrepreneurship and insisted that the U.S. needs to drastically improve its medical manufacturing sector. The senator also posted on Twitter that he had spoken to President Trump earlier this week about changing the country's imports, particularly in the medical and pharmaceutical industries.

https://twitter.com/x/status/1237697698792452100

https://newsradiowrva.radio.com/blo...ependence-on-chinese-medicine-dangerous-to-us

 

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